The financial statements of Keans Plumbing Inc. appear below: Additional information:
1. Cash dividends of $36,000 were declared and paid in 2014
2. Weighted average number of shares during 2014 was 60,000 shares.
3. Market value of common shares on December 31, 2014, was $18 per share.
4. Depreciation expense was $40,000 in 2014.
Instructions
Using the financial statements and additional information, calculate the following ratios for Keans Plumbing Inc. for 2014. Show all calculations.
Calculations
a. Current ratio _________
b. Return on equity _________
c. Price-earnings _________
d. Debt to total assets
e. Receivables turnover _________

Question

The financial statements of Keans Plumbing Inc. appear below:  Additional information:
1. Cash dividends of $36,000 were declared and paid in 2014
2. Weighted average number of shares during 2014 was 60,000 shares.
3. Market value of common shares on December 31, 2014, was $18 per share.
4. Depreciation expense was $40,000 in 2014.
Instructions
Using the financial statements and additional information, calculate the following ratios for Keans Plumbing Inc. for 2014. Show all calculations.
Calculations
a. Current ratio _________
b. Return on equity _________
c. Price-earnings _________
d. Debt to total assets
e. Receivables turnover _________

Quizplus · Accepted Answer

The Answer of The financial statements of Keans Plumbing Inc. appear below:  Additional information:
1. Cash dividends of $36,000 were declared and paid in 2014
2. Weighted average number of shares during 2014 was 60,000 shares.
3. Market value of common shares on December 31, 2014, was $18 per share.
4. Depreciation expense was $40,000 in 2014.
Instructions
Using the financial statements and additional information, calculate the following ratios for Keans Plumbing Inc. for 2014. Show all calculations.
Calculations
a. Current ratio _________
b. Return on equity _________
c. Price-earnings _________
d. Debt to total assets
e. Receivables turnover _________

The Financial Statements of Keans Plumbing Inc