Share
Explore BrainMass

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