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    Prepare ratios as requested for Global Technology

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    See the attached file and prepare ratios as requested for Global Technology.

    RATIOA
    Ratio Analysis

    Data Section

    Global Technology
    Comparative Income Statement
    For Years Ended December 31, 2008 and 2007
    2008 2007
    Net sales $3,516,075 $3,300,330
    Cost of merchandise sold 2,820,000 2,550,000
    Gross profit $696,075 $750,330
    Selling expenses $123,000 $127,500
    General expenses 81,660 88,500
    Total operating expenses $204,660 $216,000
    Operating income $491,415 $534,330
    Other expenses (interest) 36,000 19,500
    Income before income tax $455,415 $514,830
    Income tax 164,400 220,905
    Net income $291,015 $293,925

    Global Technology
    Comparative Retained Earnings Statement
    For Years Ended December 31, 2008 and 2007
    2008 2007
    Retained earnings, January 1 $1,420,095 $1,186,170
    Net income for year 291,015 293,925
    Total $1,711,110 $1,480,095
    Common stock dividends 82,500 60,000
    Retained earnings, December 31 $1,628,610 $1,420,095

    Global Technology
    Comparative Balance Sheet
    For Years Ended December 31, 2008 and 2007
    Assets 2008 2007
    Cash $34,830 $63,000
    Accounts receivable 232,500 298,575
    Merchandise inventory 825,480 637,500
    Prepaid expenses 22,500 25,500
    Plant assets (net) 1,800,000 1,530,000
    Total assets $2,915,310 $2,554,575

    Liabilities & Stockholders' Equity
    Accounts payable $326,400 $339,180
    Bonds payable, 10% due 2010 360,000 195,000
    Total liabilities $686,400 $534,180
    Common stock $600,300 $600,300
    Retained earnings 1,628,610 1,420,095
    Total stockholders' equity $2,228,910 $2,020,395
    Total liabilities & stockholders' equity $2,915,310 $2,554,575

    Answer Section

    Liquidity ratios:
    Acid-test (quick) ratio FORMULA1
    Current ratio FORMULA2
    Activity ratios:
    Accounts receivable turnover FORMULA3
    Inventory turnover FORMULA4
    Profitability ratios:
    Gross profit ratio FORMULA5
    Net income to sales FORMULA6
    Rate earned on total assets FORMULA7
    Rate earned on common stock equity FORMULA8
    Coverage ratios:
    Debt to total assets FORMULA9
    Times interest earned FORMULA10

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    https://brainmass.com/business/finance/prepare-ratios-requested-global-technology-421128

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    The expert prepares ratios as requested for global technology.

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