McCORD CORPORATION
Income Statement
For Year Ended December 31, 2005
Sales $348,600
Cost of goods sold 229,150
Gross profit $119,450
Operating expenses 52,500
Interest expense 3,100
Income before taxes $63,850
Income taxes 15,800
Net income $48,050
McCORD CORPORATION
Balance Sheet
December 31, 2005
Assets
Cash $9,000
Short-term investments 7,400
Accounts receivable, net 28,200
Notes receivable (trade) 3,500
Merchandise inventory 31,150
Prepaid expenses 1,650
Plant assets, net 152,300
Total assets $233,200
Liabilities and Equity
Accounts payable $16,500
Accrued wages payable 2,200
Income taxes payable 2,300
Long-term note payable, secured
by mortgage on plant assets 62,400
Common stock, $1 par value 90,000
Retained earnings 59,800
Total liabilities and equity $233,200
Balances on December 31, 2004:
Inventory $32,400
Assets 182,400
Common stock 90,000
Retained earnings 31,300
Check figures:
Acid-test ratio 2.3
Inventory turnover 7.2
Now I need to do the following:
(1) Current ratio: to 1
(2) Acid-test ratio: to 1
(3) Days' sales uncollected: days
(4) Inventory turnover: times
(5) Days' sales in inventory: days
6) Ratio of pledged assets to secured liabilities: to 1
(7) Times interest earned: times
(8) Profit margin:
(9) Total asset turnover: times
(10) Return on total assets:
(11) Return on common stockholders' equity:
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