- Question 1 Partially Correct Mark 2 50 Out Of 3 00 P Flag Question Ratios Compared With Industry Averages Because You Ow 1 (100.56 KiB) Viewed 47 times
Question 1 Partially correct Mark 2.50 out of 3.00 p Flag
question Ratios Compared with Industry Averages Because you own the common stock of Jacob Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Dec. 31, 2019 Dec. 31, 2018 Quick assets $700,000 $552,000 Inventory and prepaid expenses 372,000 312,000 Other assets 4,788,000 4,200,000 Total Assets $5,860,000 $5,064,000 Current liabilities $724,000 $564,000 10% Bonds payable 1,440,000 1,440,000 8% Preferred stock, $100 par value 480,000 480,000 Common stock, $10 par value 2,700,000 2,160,000 Retained earnings 516,000 420,000 Total Liabilities and Stockholders' Equity $5,860,000 $5,064,000 For 2019, net sales amount to $12,500,000, net income is $550,000, and preferred stock dividends paid are $50,000. Required Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 4.4 %
Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 4.4 % 2. Return on assets 10.07 % 3. Return on common stockholders' equity * % 4. Quick ratio 0.97 5. Current ratio 1.48 6. Debt-to-equity ratio 0.59 Check Partially correct