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# Finding financial ratios

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This assignment is very important. I want to make sure I am on track with my answers.

Refer to attached table for data
1. The return on assets ratio for year 2 is __________.
2. The operating profit margin for year 2 is __________.
3. The current ratio for year 2 is __________.
4. The quick ratio for year 2 is __________.
5. The accounts receivable turnover for year 2 is __________.
6. The days receivables outstanding for year 2 is ________.
7. The inventory turnover for year 2 is __________.
8. The days inventory held for year 2 is __________.
9. If the intangible assets in year 2 are \$100,000, the long-term debt to tangible assets for year 2 is __________.
10. The interest coverage for year 2 is __________.
11. If there is no preferred stock, the return on common equity for year 2 is __________.

#### Solution Preview

1. Return on Asset = Net Income/Average Assets = 255,000/((1,650,000+1,390,000)/2)=16.77%

2. Operating Profit Margin = Operating Profit / Net Sales = 255,000/3,280,000=7.77%

3. Current Ratio = Current Assets/Current Liabilities = 1,340,000/505,000 = 2.65

4. Quick Ratio = (Total Current Assets - Inventory)/Current ...

#### Solution Summary

The solutions answers the question(s) below.

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