Financial statements for Lowe Company appear below:

Total dividends paid during the year were $25,000,of which $12,000 was paid to the preferred shareholders.
Required:
Calculate the following for Year 2:
a)Current ratio.
b)Acid-test (quick)ratio.
c)Average collection period (age of receivables).
d)Inventory turnover.
e)Return on total assets.
f)Times interest earned.
g)Debt-to-equity ratio.

Question

Financial statements for Lowe Company appear below:

Total dividends paid during the year were $25,000,of which $12,000 was paid to the preferred shareholders.
Required:
Calculate the following for Year 2:
a)Current ratio.
b)Acid-test (quick)ratio.
c)Average collection period (age of receivables).
d)Inventory turnover.
e)Return on total assets.
f)Times interest earned.
g)Debt-to-equity ratio.

Quizplus · Accepted Answer

The Answer of Financial statements for Lowe Company appear below:

Total dividends paid during the year were $25,000,of which $12,000 was paid to the preferred shareholders.
Required:
Calculate the following for Year 2:
a)Current ratio.
b)Acid-test (quick)ratio.
c)Average collection period (age of receivables).
d)Inventory turnover.
e)Return on total assets.
f)Times interest earned.
g)Debt-to-equity ratio.

Financial Statements for Lowe Company Appear Below