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    The condensed financial statements of Westward Corporation for 2006 are presented below.

    Westward Corporation Westward Corporation
    Balance Sheet Income Statement
    December 31, 2006 For the Year Ended December 31, 2006

    Assets Revenues $2,000,000
    Current assets Expenses
    Cash and temporary Cost of goods sold 1,080,000
    investments $ 30,000 Selling and administrative
    Accounts receivable 70,000 expenses 495,000
    Inventories 120,000 Interest expense 30,000
    Total current assets 220,000 Total expenses 1,605,000
    Property, plant, and Income before income taxes 395,000
    equipment (net) 780,000 Income tax expense 140,000
    Total assets $1,000,000 Net income $ 255,000

    Liabilities and Stockholders' Equity
    Current liabilities $ 80,000
    Long-term liabilities 300,000
    Common stockholders' equity 620,000
    Total liabilities and
    stockholders' equity $1,000,000

    Additional data as of December 31, 2005: Inventory = $100,000; Total assets = $900,000; Common stockholders' equity = $540,000.

    Instructions
    Compute the following listed ratios for 2006 showing supporting calculations.

    (a) Current ratio = .

    (b) Debt to total assets = .

    (c) Times interest earned = .

    (d) Inventory turnover = .

    (e) Profit margin ratio = .

    (f) Return on common stockholders' equity = .

    (g) Return on assets = .

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    https://brainmass.com/business/financial-ratios/ratio-calculation-200674

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    Solution Preview

    Please see the attached file.

    The condensed financial statements of Westward Corporation for 2006 are presented below.

    Westward Corporation Westward Corporation
    Balance Sheet Income Statement
    December 31, 2006 For the Year Ended December 31, 2006

    Assets Revenues $2,000,000
    Current assets Expenses
    Cash and temporary Cost of goods sold 1,080,000
    investments $ 30,000 Selling and administrative
    Accounts receivable 70,000 expenses 495,000
    Inventories 120,000 Interest expense 30,000
    Total current assets 220,000 Total ...

    Solution Summary

    The solution explains the calculation of current ratio, debt to total assets, times interest earned, inventory turnover, profit margin ratio, return on common stockholders' equity and return on assets for Westward Corporation

    $2.49

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