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Use the Following Information to Calculate the Ratios Requested Below

Question 158

Essay

Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.
Average inventoryAverage total assetsCost of goods soldIncome taxes expenseInterest expenseNet incomeNet salesMarket price, December 31 , on 2,000 shares$4,50050,00015,7502,7001,5003,20030,000$48/share\begin{array}{c}\begin{array}{lll}\text{Average inventory}\\\text{Average total assets}\\\text{Cost of goods sold}\\\text{Income taxes expense}\\\text{Interest expense}\\\text{Net income}\\\text{Net sales}\\\text{Market price, December 31 , on 2,000 shares}\end{array}\begin{array}{lll}&&\end{array}\begin{array}{r}\$ 4,500\\50,000\\15,750\\2,700\\1,500\\3,200\\30,000\\\$48/share\end{array}\end{array}  Return on assets  Inventory turnover  Price/earings (P/E) ratio  Interest coverage ratio \begin{array}{|l|l|l|l|}\hline\text { Return on assets } & & \text { Inventory turnover }& \\\hline \text { Price/earings }(\mathrm{P} / \mathrm{E}) \text { ratio } & & \text { Interest coverage ratio }& \\\hline\end{array}

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