3/14/2021 Question 1 - Wk 1 - Practice: Ratio Analysis [due Sat] - Connect
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Following is the balance sheet of Vernon Company for Year 3:
VERNON COMPANY
Balance sheet
Assets
Cash $ 15,300
Marketable securities 8,420
Accounts receivable 13,460
Inventory 11,300
Property and equipment 171,000
Accumulated depreciation (12,700)
Total assets $206,780
Liabilities and Stockholders’ Equity
Accounts payable $ 8,030
Cu
ent notes payable 3,040
Mortgage payable 4,600
Bonds payable 21,120
Common stock 113,500
Retained earnings 56,490
Total liabilities and stockholders’ equity $206,780
The average number of common stock shares outstanding during Year 3 was 870
shares. Net income for the year was $15,700.
Required
Compute each of the following: (Round your answer to 2 decimal places. Fo
percentages, XXXXXXXXXXshould be entered as 23.45.)
$
a. Cu
ent ratio 2.30
. Earnings per share 5.00 per share
c. Quick (acid-test) ratio 23.45.
d. Return on investment 15.70 %
e. Return on equity 171.00 %
f. Debt to equity ratio
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