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BUS-FP4061 - Managerial Accounting Principles Assessment 10: Ratio Analysis Worksheet Problem 1 Solve the given problem...

BUS-FP4061 - Managerial Accounting Principles
Assessment 10: Ratio Analysis Worksheet
Problem 1
Solve the given problem based on the following scenario.
Megacorp's balance sheet and income statement, including all credit sales, are given in the table below.
As of December 31, 2012:
·      Inventories were $46,500.
·      Total assets were $178,500.
·      Common stock was $90,000.
·      Retained earnings were $20,600.
Megacorp Income Statement (December 31, 2013)
Sales $ 349,500
Cost of goods sold     238,250
Gross profit     111,250
Operating expenses       51,250
Interest expenses         4,000
Income before taxes       56,000
Taxes (at 30%)       16,800
Net income $   39,200
Megacorp Balance Sheet (December 31, 2013)
Assets Amount ($) Liability and Equity Amount ($)
Cash      10,000 Accounts payable      17,000
Short-term investment        7,500 Accrued wages payable        2,500
Accounts receivable      28,000 Income taxes payable        3,000
Notes receivable        3,500 Notes payable (long-term)      64,500
Inventory      31,150 Common stock      90,000
Prepaid expenses        1,650 Retained earnings      59,800
Plant    155,000
Total assets    236,800 Total liability and equity    236,800
Compute the following and show your work.
Ratio Calculation
Current ratio
Days' sales uncollected
Days' sales in inventory
Times interest earned
Total asset turnover
Return on common stockholders' equity
Acid-test ratio
Inventory turnover
Debt-to-equity ratio
Profit margin ratio
Return on total assets

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