Title: The balance sheet and income statement for Johnson and Breakwater is presented below. Post by: borteleto on Jul 4, 2018 The balance sheet and income statement for Johnson and Breakwater is presented below.
Balance Sheet (000) Cash$500 Accounts receivable1,500 Inventories500 Current assets2,500 Net fixed assets5,000 Total Assets7,500 Accounts payable1,200 Bank note300 Total current liabilities1,500 long-term debt4,000 Common stock300 Retained earnings1,700 Total liabilities and owners' equity$7,500 Income Statement (000) Net sales$8,500 Cost of goods sold(3,400) Gross profit5,100 Operating expenses(2,900) Net operating income2,200 Interest expense (580) Earnings before taxes1,620 Income tax (34%)(551) Net income$1,069 a.Compute the following ratios: Current ratio, Acid test ratio, Debt ratio, Total asset turnover, Operating profit margin, Return on total investments, Times interest earned, Inventory turnover. b.All other things equal, compute the dollar amount of sales needed to achieve an 18% return on total assets for the coming year. c.Given Johnson's inventory turnover ratio, find a way of computing the current level of inventory given this ratio and assuming the current level of inventories is unknown. Set up but do not solve. Title: The balance sheet and income statement for Johnson and Breakwater is presented below. Post by: DeanaRay on Jul 4, 2018 Content hidden
Title: The balance sheet and income statement for Johnson and Breakwater is presented below. Post by: borteleto on Jul 4, 2018 :heavy_check_mark:
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