Problem 9-4

Name:
Section:

Score: 100%

Key Code: 2
Instructions

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1. Working capital $3,690,000 - $900,000 =

Ratio Numerator ÷ Denominator

2. Current ratio $3,690,000 ÷ $900,000 =

3. Quick ratio $ 2,250,000 ÷ $900,000 =

4. Accounts receivable turnover $ 10,000,000 ÷ $ 625,000 =

5. Days' sales in receivables $ 625,000 ÷ $ 27,397 =

6. Inventory turnover $ 5,350,000 ÷ $ 1,070,000 =

7. Days' sales in inventory $ 1,070,000 ÷ $ 14,658 =

8. Debt ratio $ 2,600,000 ÷ $ 9,780,000 =

9. Ratio of liabilities to stockholders' equity $ 2,600,000 ÷ $ 7,180,000 =

10. Ratio of fixed assets to long-term liabilities $ 9,780,000 ÷ $ 1,700,000 =

11. Times interest earned $ 1,300,000 ÷ $ 170,000 =

12. Times preferred dividends earned $ 900,000 ÷ $ 45,000 =

13. Asset turnover $ 10,000,000 ÷ $ 3,553,000 =

14. Return on total assets $ 1,070,000 ÷ $ 9,267,500 =

15. Retrun on stockholders' equity $ 900,000 ÷ $ 6,777,500 =

16. Return on common stockholders' equity $ 855,000 ÷ $ 6,277,500 =

17. Earnings per share on common stock $ 855,000 ÷ 100,000 =

18. Price-earnings ratio $ 119.70 ÷ $ 8.55 =

19. Dividends per share of common stock $ 50,000 ÷ 100,000 =

20. Dividend yield $ 0.50 ÷ $ 119.70 =

$2,790,000

Calculated
Value

4.1

2.5

16.0

22.8

5.0

73.0

26.6%

0.4

7.6

20.0

2.8

11.5%

13.3%
13.6%

$8.55

14.0

$0.50

0.4%