The financial statements of Remco Distributors Inc. appear below: Additional information for 2020:
1. Cash dividends of $45,000 were declared and paid.
2. Average number of common shares was 60,000 shares.
3. Market value of common shares on December 31 was $20 per share.
Instructions
Using the financial statements and the additional information, calculate the following ratios for 2020:
a) Current ratio
b) Return on equity
c) Price/earnings ratio
d) Accounts Receivables turnover
e) Profit margin

Question

The financial statements of Remco Distributors Inc. appear below:   Additional information for 2020:
1. Cash dividends of $45,000 were declared and paid.
2. Average number of common shares was 60,000 shares.
3. Market value of common shares on December 31 was $20 per share.
Instructions
Using the financial statements and the additional information, calculate the following ratios for 2020:
a) Current ratio
b) Return on equity
c) Price/earnings ratio
d) Accounts Receivables turnover
e) Profit margin

Quizplus · Accepted Answer

The Answer of The financial statements of Remco Distributors Inc. appear below:   Additional information for 2020:
1. Cash dividends of $45,000 were declared and paid.
2. Average number of common shares was 60,000 shares.
3. Market value of common shares on December 31 was $20 per share.
Instructions
Using the financial statements and the additional information, calculate the following ratios for 2020:
a) Current ratio
b) Return on equity
c) Price/earnings ratio
d) Accounts Receivables turnover
e) Profit margin

The Financial Statements of Remco Distributors Inc