Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 9

At the end of the year, the following information was obtained from the accounting records of Solar Systems, Inc.:

Instructions
a.rom the information given, compute the following:
1.nventory turnover.
2.ccounts receivable turnover.
3.otal operating expenses.
4.ross profit percentage.
5.eturn on average stockholders' equity.
6.eturn on average assets.
b.olar Systems has an opportunity to obtain a long-term loan at an annual interest rate of 8 percent and could use this additional capital at the same rate of profitability as indicated by the given data.ould obtaining the loan be desirable from the viewpoint of the stockholders Explain.