Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $51,900; total assets, $179,400; common stock, $95,000; and retained earnings, $53,348.)
McCORD CORPORATION
Income Statement
For Year Ended December 31, 2011
Sales $ 449,600
Cost of goods sold 296,950
Gross profit 152,650
Operating expenses 99,100
Interest expense 4,100
Income before taxes 49,450
Income taxes 19,920
Net income $ 29,530
McCORD CORPORATION
Balance Sheet
December 31, 2011
Assets Liabilities and Equity
Cash $ 8,000 Accounts payable $ 25,500
Short-term investments 8,400 Accrued wages payable 4,200
Accounts receivable, net 33,200 Income taxes payable 4,200
Notes receivable (trade)* 6,500 Long-term note payable, secured
Merchandise inventory 34,150 by mortgage on plant assets 71,400
Prepaid expenses 2,700 Common stock 95,000
Plant assets, net 151,300 Retained earnings 43,950
Total assets $ 244,250 Total liabilities and equity $ 244,250
* These are short-term notes receivable arising from customer (trade) sales.
Required:
Compute the following. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response):
(1) Current ratio to
(2) Acid-test ratio to
(3) Days’ sales uncollected (including note) days
(4) Inventory turnover times
(5) Days’ sales in inventory days
(6) Debt-to-equity ratio to
(7) Times interest earned times
(8) Profit margin ratio %
(9) Total asset turnover times
(10) Return on total assets %
(11) Return on common stockholders’ equity %
