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From the Following Information,compute the Ratios Indicated and Place the Proper

Question 141

Essay

From the following information,compute the ratios indicated and place the proper numbers in the spaces provided.Assume the average for the year is the same as the ending balances for the balance sheet accounts.Round percentages to one decimal place,and show your work.
Westwood Corporation
Balance Sheet December
31,20xx 31,20 \mathrm{xx}
 Assets  Cash $15,000 Marketable securities 10,000 Accounts receivable (net) 20,000 Inventory 30,000 Prepaid expenses 8,000 Property, plant, and equipment 117,000 Total assets $200,000 Liabilities and Stockholders’ Equity  Current liabilities $30,000 Long-term liabilities 50,000 Stockholders’ equity 120,000 Total liabilities and stockholders’ equity $200,000\begin{array}{lrr} & \text { Assets } & \\\text { Cash } & \$ 15,000 \\\text { Marketable securities } & 10,000 \\\text { Accounts receivable (net) } & 20,000 \\\text { Inventory } & 30,000 \\\text { Prepaid expenses } & 8,000 \\\text { Property, plant, and equipment } & 117,000\\\text { Total assets }&\$200,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 30,000 \\\text { Long-term liabilities } & 50,000 \\\text { Stockholders' equity } & 120,000\\\text { Total liabilities and stockholders' equity }&\$200,000\end{array} Westwood Corporation
Income Statement
 For the Year Ended December 31,20xx\text { For the Year Ended December } 31,20 x x
 Net sales $160,000 Cost of goods sold 120,000 Gross margin $40,000 Operating expenses  Selling and administrative expenses $16,000 Interest expense 8,000 Income taxes expense 4,00028,000 Net income $12,000\begin{array}{lr}\text { Net sales } && \$ 160,000 \\\text { Cost of goods sold } && 120,000 \\\text { Gross margin } && \$ 40,000\\\text { Operating expenses }\\\text { Selling and administrative expenses } & \$ 16,000 \\\text { Interest expense } & 8,000 \\\text { Income taxes expense } & 4,000&28,000\\\text { Net income }&&\$12,000\end{array}
Westwood had 4,000 shares of common stock issued and outstanding.The market price of common stock at year end was $15.00 per share.Dividends paid in 20xx were $0.60 per share.
 Current ratio  Asset turnover  Quick ratio  Return on assets  Receivable turnover  Return on equity  Days’ sales uncollected  Debt to equity ratio  Inventory turnover  Interest coverage ratio  Profit margin  Days’inventory on hand  Dividends yield  Pricelearnings (P/E) ratio \begin{array}{|l|l|l|}\hline \text { Current ratio } & \text { Asset turnover }& \\\hline \text { Quick ratio } & \text { Return on assets } \\\hline \text { Receivable turnover } & \text { Return on equity } \\\hline \text { Days' sales uncollected } & \text { Debt to equity ratio } \\\hline \text { Inventory turnover } & \text { Interest coverage ratio } \\\hline \text { Profit margin } & \text { Days'inventory on hand } \\\hline \text { Dividends yield } & \text { Pricelearnings (P/E) ratio } \\\hline\end{array}

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