Carson Inc. reported net sales revenue of $850,000 and paid no dividends during the current year. The following information is also available at the end of the current and prior years: There was no preferred stock outstanding during the current year.
Required:
Part a. Calculate the return on equity for the current year.
Part b. Calculate the debt-to-assets ratio for the current year.
Part c. Calculate the fixed asset turnover ratio for the current year.
Part d. Calculate the current ratio for the current year.
Round all ratios to two decimal points.

Question

Carson Inc. reported net sales revenue of $850,000 and paid no dividends during the current year. The following information is also available at the end of the current and prior years:  There was no preferred stock outstanding during the current year.
Required:
Part a. Calculate the return on equity for the current year.
Part b. Calculate the debt-to-assets ratio for the current year.
Part c. Calculate the fixed asset turnover ratio for the current year.
Part d. Calculate the current ratio for the current year.
Round all ratios to two decimal points.

Quizplus · Accepted Answer

The Answer of Carson Inc. reported net sales revenue of $850,000 and paid no dividends during the current year. The following information is also available at the end of the current and prior years:  There was no preferred stock outstanding during the current year.
Required:
Part a. Calculate the return on equity for the current year.
Part b. Calculate the debt-to-assets ratio for the current year.
Part c. Calculate the fixed asset turnover ratio for the current year.
Part d. Calculate the current ratio for the current year.
Round all ratios to two decimal points.