Accounting: Ratio analysis
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Use the financial statements for Pocca Company to calculate the following ratios for 2006 amd 2005. The following must be done for both years.
Attached is the Balance Sheet & Statements of Income and Retained Earnings
a. Working Capital
b. Current Ratio
c. Quick Ratio
d. Accounts receivable turnover (beginning receivables January, 2005, was $47,000)
e. Average number of days to collect accounts receivable
f. Inventory turnover (beginning inventory at January 1, 2005 was $140,000)
g. Average number of days to sell inventory
h. Debt to assets ratio
i. Debt to equity ratio
j. Times interest earned
k. Plant assets to long-term debt
l. Net margin
m. Asset turnover
n. Return on investment
o. Return on equity
p. Earnings per share
q. Book value per share of common stock
r. Price-earnings ratio (market price per share: 2005, $11.75; 2006, $12.50)
r. Dividend yield on common stock.
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Solution Summary
The problem deals with estimating different ratios from selected information.
Education
- B. Sc., University of Nigeria
- M. Sc., London South Bank University
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