Please help compute the following ratios in Excel. Provide formulas. See attached file for data.
Accounts Receivable Turnover
Return on Assets
Return on Common Shares
Price Earnings Ratio
Debt to Assets
Times Interest Earned
Please find attached file with your answers. I have computed 2013 as well since it was just a formula copy. I included all the formulae to make it clear.
Hope this helps.
Paul Cerisano MBA, MEd
2014 2013 Formulae
Current Ratio 1.5 :1 1.4 Current Assets (CA) / Current Liabilites (CL)
Acid-Test Ratio 0.93 :1 0.89 (CA-Inv) / CL
Accts Rec Turnover 5.9 x 5.6 Sales / Accounts ...
This solution provides the computations for 14 ratios from the Balance Sheet and Income Statement. Ratios computed involve: current ratio, acid-test ratio, accounts receivable turnover, inventory turnover, and profit margin. It provides all formulae definition and excel paths to solution.