Biology Forums - Study Force

Selected information from the comparative financial statements of Faure Company for the year ended December 31, appears below:

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2021

2020

Accounts receivable (net)	$    180,000	$200,000
Inventory	140,000	160,000
Total assets	1,200,000	800,000
Current liabilities	140,000	110,000
Long-term debt	400,000	300,000
Net credit sales	1,330,000	700,000
Cost of goods sold	900,000	530,000
Interest expense	50,000	25,000
Income tax expense	60,000	29,000
Net income	150,000	85,000

There is no preferred stock and the tax rate is 30%.

Required:

Calculate each of the following for 2021:

a.	Debt ratio

b.	Debt-to-equity ratio

c.	Times interest earned ratio

d.	Gross margin percentage

e.	Return on assets

f.	Return on common stockholders' equity

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