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The Following Information Is Taken from the Financial Statements of B.Darin

Question 138

Essay

The following information is taken from the financial statements of B.Darin Company:
Net sales revenue $ 900,000
Expenses 600,000
Net income 300,000
Net cash from operations 290,000
Assets,end of current year 600,000
Liabilities,end of current year 100,000
Stockholders' equity,end of current year 500,000
Assets,end of previous year 590,000
Stockholders' equity,end of previous year 490,000
Expenses include interest of $10,000 and income tax of $90,000.There was an average of 40,000 shares of common stock outstanding during the year and the market price of the stock is $15 per share at the end of the year.There was no preferred stock outstanding during the year.
Required:
Calculate the following ratios for the current year:
Part a.Fixed asset turnover
Part b.Return on equity (ROE)
Part c.Earnings per share (EPS)
Part d.Times interest earned
Part e.Price/Earnings ratio
Part f.Debt-to-assets ratio
Part g.Net profit margin

Correct Answer:

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Part a
Average total assets = ($600,000 ...

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