McCord Financial statement ratios?
Selected year-end financial statements of McCord Corporation follow. (Note: All sales are on credit; selected balance sheet amounts at December 31, 2004, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.) McCORD CORPORATION Income Statement For Year Ended December 31, 2005 Sales . . . . . . . . . . . . . . . . . . . $348,600 Cost of goods sold . . . . . . . . 229,150 Gross profit . . . . . . . . . . . . . 119,450 Operating expenses . . . . . . . . 52,500 Interest expense . . . . . . . . . . 3,100 Income before taxes . . . . . . . 63,850 Income taxes . . . . . . . . . . . . . 15,800 Net income . . . . . . . . . . . . . . $ 48,050 McCORD CORPORATION Balance Sheet December 31, 2005 Assets Liabilities and Equity Cash . . . . . . . . . . . . . . . . . . . . . . $ 9,000 Accounts payable . . . . . . . . . . . . . . . . . . $ 16,500 Short-term investments . . . . . . . . . 7,400 Accrued wages payable . . . . . . . . . . . . . . 2,200 Accounts receivable, net . . . . . . . . 28,200 Income taxes payable . . . . . . . . . . . . . . . . 2,300 Notes receivable (trade)* . . . . . . . . 3,500 Long-term note payable, secured Merchandise inventory . . . . . . . . . . 31,150 by mortgage on plant assets . . . . . . . . . 62,400 Prepaid expenses . . . . . . . . . . . . . . 1,650 Common stock, $1 par value . . . . . . . . . . 90,000 Plant assets, net . . . . . . . . . . . . . . . 152,300 Retained earnings . . . . . . . . . . . . . . . . . . 59,800 Total assets . . . . . . . . . . . . . . . . . . $233,200 Total liabilities and equity . . . . . . . . . . . . . $233,200 Required Compute the following: (1) current ratio, (2) acid-test ratio, (3) days’ sales uncollected, (4) inventory turnover, (5) days’ sales in inventory, (6) ratio of pledged assets to secured liabilities, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders’ equity
Selected year-end financial statements of McCord Corporation follow. (Note: All sales are on credit; selected balance sheet amounts at December 31, 2004, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.) McCORD CORPORATION Income Statement For Year Ended December 31, 2005 Sales . . . . . . . . . . . . . . . . . . . $348,600 Cost of goods sold . . . . . . . . 229,150 Gross profit . . . . . . . . . . . . . 119,450 Operating expenses . . . . . . . . 52,500 Interest expense . . . . . . . . . . 3,100 Income before taxes . . . . . . . 63,850 Income taxes . . . . . . . . . . . . . 15,800 Net income . . . . . . . . . . . . . . $ 48,050 McCORD CORPORATION Balance Sheet December 31, 2005 Assets Liabilities and Equity Cash . . . . . . . . . . . . . . . . . . . . . . $ 9,000 Accounts payable . . . . . . . . . . . . . . . . . . $ 16,500 Short-term investments . . . . . . . . . 7,400 Accrued wages payable . . . . . . . . . . . . . . 2,200 Accounts receivable, net . . . . . . . . 28,200 Income taxes payable . . . . . . . . . . . . . . . . 2,300 Notes receivable (trade)* . . . . . . . . 3,500 Long-term note payable, secured Merchandise inventory . . . . . . . . . . 31,150 by mortgage on plant assets . . . . . . . . . 62,400 Prepaid expenses . . . . . . . . . . . . . . 1,650 Common stock, $1 par value . . . . . . . . . . 90,000 Plant assets, net . . . . . . . . . . . . . . . 152,300 Retained earnings . . . . . . . . . . . . . . . . . . 59,800 Total assets . . . . . . . . . . . . . . . . . . $233,200 Total liabilities and equity . . . . . . . . . . . . . $233,200 Required Compute the following: (1) current ratio, (2) acid-test ratio, (3) days’ sales uncollected, (4) inventory turnover, (5) days’ sales in inventory, (6) ratio of pledged assets to secured liabilities, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders’ equity