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Balance Sheet and Ratios: Example Problems

Use the following information to answer the questions below:

Toyota
Balance Sheet
12/31/XX
(in thousands of dollars)

Cash $150 Accounts Payable $100
Accounts Receivable 250 Notes Payable 250
Inventory 600 Other Current Liabilities 50
Total Current Assets $1,000 Total Current Liabilities $400

Total Fixed Assets 1,500 Long Term Debt $1,100
Common Stock 800
Retained Earnings 200
Total Assets $2,500 Total Liab. & Equity $2,500

Number of shares outstanding = 10,000 shares
Price per Share = $100

Enron Corporation
Income Statement
for the year ending 12/31/XX
(in thousands of dollars)

Net sales $ 2,700
Operating Costs (2,350)
Depreciation (150)
Interest Expense (70)

EBT 130
Income Tax (40%) (52)

Net Income $78

Dividends to Common Stock = $58

Calculate each of the following ratios. Be sure to give the complete equation as well as the solution:

Current ratio
Quick ratio
Total Debt/Total Asset Ratio
Inventory Turnover Ratio
ROE
TIE
EPS
Net Profit Margin
Total Assets Turnover Ratio

Solution Summary

This solution assists with questions on balance sheets and ratios. Accounts receivables are determined.

$2.19