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The Following Information Is Taken from the Financial Statements of B.Darin

Question 161

Essay

The following information is taken from the financial statements of B.Darin Company:
The following information is taken from the financial statements of B.Darin Company:     Expenses include interest of $10,000 and income tax of $90,000.There was an average of 40,000 shares of common stock outstanding during the year and the market price of the stock is $15 per share at the end of the year.There was no preferred stock outstanding during the year. Required: Calculate the following ratios for the current year: Part a.Fixed asset turnover Part b.Return on equity (ROE) Part c.Earnings per share (EPS) Part d.Times interest earned Part e.Price/Earnings ratio Part f.Debt-to-assets ratio?Part g.Net profit margin
Expenses include interest of $10,000 and income tax of $90,000.There was an average of 40,000 shares of common stock outstanding during the year and the market price of the stock is $15 per share at the end of the year.There was no preferred stock outstanding during the year.
Required:
Calculate the following ratios for the current year:
Part a.Fixed asset turnover
Part b.Return on equity (ROE)
Part c.Earnings per share (EPS)
Part d.Times interest earned
Part e.Price/Earnings ratio
Part f.Debt-to-assets ratio?Part g.Net profit margin

Correct Answer:

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Part a
Average total assets = ($600,000 ...

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