ACC 543 Wk 1 – Practice: Ratio Analysis

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ACC 543 Wk 1 – Practice: Ratio Analysis

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ACC 543 Wk 1 – Practice: Ratio Analysis

ACC 543 Wk 1 – Practice: Ratio Analysis

Following is the balance sheet of Zachary Company for Year 3:

ZACHARY COMPANY
Balance sheet
Assets
Cash $ 14,800
Marketable securities 8,300
Accounts receivable 12,740
Inventory 11,150
Property and equipment 170,000
Accumulated depreciation (12,800 )
Total assets $ 204,190
Liabilities and Stockholders’ Equity
Accounts payable $ 8,390
Current notes payable 3,400
Mortgage payable 4,350
Bonds payable 21,300
Common stock 114,000
Retained earnings 52,750
Total liabilities and stockholders’ equity $ 204,190

The average number of common stock shares outstanding during Year 3 was 890 shares. Net income for the year was $14,800.

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

b.Earnings per share                 per share

c.Quick (acid-test) ratio

d.Return on investment

e.Return on equity

f.Debt to equity ratio

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ACC 543 Wk 1 – Practice: Ratio Analysis