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# Hilda Company Ratio Analysis: Compute Six Financial Ratios

Compute the specified ratios using Hilda Company balance sheet at December 31, 2011

Assets
Cash \$15,000.00
Marketable securities \$8,000.00
Accounts receivable \$13,000.00
Inventory \$11,000.00
Property and equipment \$170,000.00
Accumulated depreciation (\$12,500.00)
Total Assets \$204,500

Equities
Accounts payable \$8500.00
Current notes payable \$3500.00
Mortgage payable \$4500.00
Bonds payable \$21,500.00
Common Stock \$114,000.00
Retained earnings \$52,500.00
Total liabilities and stockholders' equity \$204,500

The average number of common stock shares outstanding during 2011 was 880 shares. Net income for the year was \$15,000.00

Required:

Compute each of the following:
a. Current Ratio
b. Earnings per share
c. Quick( acid-test) ration
d. Return on investment
e. Return on equity
f. Debt to equity ratio.

#### Solution Preview

a. Current ratio: \$47,000 ÷ \$12,000 = 3.92:1
b. Earnings per share: \$15,000 ÷ 880 = \$17.05 per ...

#### Solution Summary

The solution assists with computing six financial ratios.

\$2.19