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    Financial Ratios - Balance Sheet and Income Analysis

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    Accounts Payable..............$ 1,800
    Accounts Receivable.......... 5,475
    Building.............................40,000
    Cash........................... 1,125
    Capital Stock................... 20,000
    Inventory............................ 3,400
    Land............................ 10,000
    Long-Term Notes Payable.... 27,000
    Market Value of Equity........ 90,000
    Net Income.................... 7,000
    Retained Earnings (ending).... 5,000
    Sales............................. 100,000
    Short-Term Notes Payable.......2,300
    Stockholders' Equity........... 25,000
    Unearned Revenue..................3,900

    Use the information in the table above to compute the following ratios:
    a. Debt Ratio
    b. Current Ratio
    c. Return on Sales
    d. Asset Turnover
    e. Return on Equity
    f. Price-Earnings Ratio

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    https://brainmass.com/business/financial-statements/financial-ratios-balance-sheet-and-income-analysis-173232

    Solution Preview

    The first step is to categorize the data in the table into a balance sheet and statement of income.
    Enough data is provided to complete a balance sheet, which is given in the attachment (choose word .doc format or .pdf). Notice that the Total Assets ($60,000) equals the Total Debt + Shareholder's Equity ($60,000) as they must in a balance sheet.
    The balance sheet items must be subcategorized into short term and ...

    Solution Summary

    The provided data is reformatted into a balance sheet and income statement. Using the reformatted data, the required ratios are calculated. Solution is provided in both Word .doc and pdf formats.

    $2.49

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