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    Ratios for the financial statement

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    I am have a difficult time figuring out the ratios for the financial statement of Becker, Becker and Becker. Can you help me with computing these ratios?

    (See attached file for full problem description)
    The balance sheet and income statement for Becker, Becker & Becker are
    presented below:

    Balance Sheet
    Assets
    Cash $ 500
    Accounts Receivable 1,500
    Inventories 500
    Current Assets $2,500

    Net Fixed Assets 5,000
    Total Assets $7,500

    Liabilities
    Accounts Payable $1,200
    Bank Note 300
    Total Current Liabilities $1,500

    Long Term Debt 4,000
    Total Liabilities $5,500

    Shareholders Equity
    Common Stock $300
    Retained Earnings 1,700
    Total Shareholder's Equity $2,000
    Total Liabilities & Equity $7,500

    Income Statement
    Net Sales $8,500
    Cost of Goods Sold (3,400)
    Gross Profit $5,100

    Operating Expenses (2,900)
    Net Operating Income $2,200

    Interest Expense 580
    Earnings before taxes $1,620

    Income Tax (34%) (551)
    Net Income $1,069

    Using the above financial statements compute the following ratios: (show your formulas and work!!!) As you can see I have only provided the ending period values so you do not need to average beginning and ending values of assets and equity as in homework three) Eight ratios worth Five points total or 0.625 each.

    Current Ratio
    Quick Ratio
    Total Debt Ratio
    Return on Assets
    Return on Equity
    Operating profit margin
    Net Profit Margin
    Inventory turnover

    If the market value of B&B is $4,000 what is the market to book value ratio? 0.25 points

    If there are 1000 shares outstanding what were the earnings per share? 0.25 points

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    https://brainmass.com/business/financial-statements/63740

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    Solution Preview

    I am have a difficult time figuring out the ratios for the financial statement of Becker, Becker and Becker. Can you help me with computing these ratios?

    (See attached file for full problem description)
    Please see the attached file.The balance sheet and income statement for Becker, Becker & Becker are
    presented below:

    Balance Sheet
    Assets
    Cash $ 500
    Accounts Receivable 1,500
    Inventories 500
    Current Assets $2,500
    ...

    Solution Summary

    This provides the steps for computation of ratios for the financial statement

    $2.19

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