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Griffin Company financial data: compute ROA, current ratio

The 2009 financial statements for the Griffin Company are as follows:
GRIFFIN COMPANY STATEMENT OF FINANCIAL POSITION
12/31/09 12/31/08
Assets
Cash $40,000 $10,00
Accounts receivable 30,000 55,000
Inventory 110,000 70,000
Property, plant, and equipment 250,000 257,000
Total assets $430,000 $392,000
Liabilities and stockholders' equity
Current liabilities $60,000 $50,000
5% mortgage payable 120,000 162,000
Common stock (30,000 shares) 150,000 150,000
Retained earnings 100,000 30,000
Total liabilities and stockholders' equity $430,000 $392,000

GRIFFIN COMPANY INCOME STATEMENT FOR THE YEAR ENDED December 31,2009
Sales on Account $420,000
Less Expenses
Cost of goods sold $214,00
Salary expense 50,000
Depreciation expense 7,0000
Interest expense 9,000
Total expense $280,000
Income before taxes 140,000
Income tax expenses (50%) 70,000
Net income $70,000

Required
Compute the following ratios for the Griffin Company for the year ending December 31, 2009.
A. Profit margin ratio (before interest and taxes)
B. Total asset turnover
C. Rate of return on total assets
D. Rate of return on common stockholders' equity
E. Earnings per share of stock
F. Inventory turnover
G. Current ratio
H. Quick ratio
I. Accounts receivable turnover
J. Debt-to-equity ratio
K. Times interest earned

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Solution Summary

The expert computes the ROA and current ratio for Griffin Company financial data.

$2.19