Provided below are the comparative income statement and balance sheet for Aloha Company at, and for the years ended, December 31, 20X6 and 20X5. $\begin{array}{lll}&20X6&20X5\
\text { Sales (all on account) } & \$ 1,70 & \$ 1,606 \
\text { Cost of goods sold } & \underline{1,126} & \underline{1,022} \
\text { Gross profit } & \$ 576 & \$ 584 \
\text { Operating expenses } & \underline{318} & 280\\text { Operating income } & \$ 258 & \$ 304 \
\text { Interest expense } &{72}&{68} \
\text { Income before taxes } & \$ 186 & 94 \
\text { Income tax expense } & 74 & 94\
\text { Net income }&\$112&\$142
\end{array}$
Determine the following ratios for 20X6 given the above information:
1. the current ratio
2. the average collection period in days
3. the return on stockholders' equity
4. the price- earnings ratio
5. the dividend yield

Question

Provided below are the comparative income statement and balance sheet for Aloha Company at, and for the years ended, December 31, 20X6 and 20X5. $\begin{array}{lll}&20X6&20X5\
\text { Sales (all on account) } & \$ 1,70 & \$ 1,606 \
\text { Cost of goods sold } & \underline{1,126} & \underline{1,022} \
\text { Gross profit } & \$ 576 & \$ 584 \
\text { Operating expenses } & \underline{318} & 280\\text { Operating income } & \$ 258 & \$ 304 \
\text { Interest expense } &{72}&{68} \
\text { Income before taxes } & \$ 186 & 94 \
\text { Income tax expense } & 74 & 94\
\text { Net income }&\$112&\$142
\end{array}$
 Determine the following ratios for 20X6 given the above information:
1. the current ratio
2. the average collection period in days
3. the return on stockholders' equity
4. the price- earnings ratio
5. the dividend yield

Quizplus · Accepted Answer

The Answer of Provided below are the comparative income statement and balance sheet for Aloha Company at, and for the years ended, December 31, 20X6 and 20X5. $\begin{array}{lll}&20X6&20X5\
\text { Sales (all on account) } & \$ 1,70 & \$ 1,606 \
\text { Cost of goods sold } & \underline{1,126} & \underline{1,022} \
\text { Gross profit } & \$ 576 & \$ 584 \
\text { Operating expenses } & \underline{318} & 280\\text { Operating income } & \$ 258 & \$ 304 \
\text { Interest expense } &{72}&{68} \
\text { Income before taxes } & \$ 186 & 94 \
\text { Income tax expense } & 74 & 94\
\text { Net income }&\$112&\$142
\end{array}$
 Determine the following ratios for 20X6 given the above information:
1. the current ratio
2. the average collection period in days
3. the return on stockholders' equity
4. the price- earnings ratio
5. the dividend yield

Provided Below Are the Comparative Income Statement and Balance Sheet