Following is the balance sheet of Thornton Company for Year 3:THORNTON COMPANYBalance sheetAssetsCash$ 15,050Marketable securitiesAccounts receivable8,380InventoryProperty and equipmentAccumulated depreciation13,34011,050165,500(12,300)Total assets$201,020Liabilities and Stockholders' EquityAccounts payableCurrent notes payableMortgage payableBonds payable$ 8,7503,2004,10021,840113,30049,830$201,020Common stockRetained earningsTotal liabilities and stockholders' equityThe average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300.RequiredCompute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.)a. Current ratio4.00b. Earnings per share2$17.00 per sharec. Quick (acid-test) ratio3.08d. Return on investment%e. Return on equityf. Debt to equity ratio< Prev6 of 6NextMacBook Air80888F2F3DIIF4FSF6F8F9#$&*34EY一FGH* CODI

The ratio analysis is used by the management to analyze and evaluate the performance of the business…

Following is the balance sheet of Thornton Company for Year 3: THORNTON COMPANY Balance sheet Assets $ 15,050 8,380 13,340 11,050 165,500 (12,300) Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets $201,020 Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable Common stock Retained earnings 8,750 3,200 4,100 21,840 113,300 49,830 Total liabilities and stockholders' equity $201,020 The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.) a. Current ratio 4.00 b. Earnings per share 17.00 per share c. Quick (acid-test) ratio 3.08 d. Return on investment e. Return on equity % f. Debt to equity ratio

Following is the balance sheet of Thornton Company for Year 3: THORNTON COMPANY Balance sheet Assets $ 15,050 8,380 13,340 11,050 165,500 (12,300) Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets $201,020 Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable Common stock Retained earnings 8,750 3,200 4,100 21,840 113,300 49,830 Total liabilities and stockholders' equity $201,020 The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.) a. Current ratio 4.00 b. Earnings per share 17.00 per share c. Quick (acid-test) ratio 3.08 d. Return on investment e. Return on equity % f. Debt to equity ratio

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...

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