Here are the answers to the accounting ratios and fill-in questions:
1. 4,300 shares
2. $330,558
3. $330,558
4. $535,073.57
5. $204,515.34
6. 0.62
7. Dividend Yield = $1,075/ ($38.44*4,300) = 0.05
8. Accounts Receivable Turnover = Sales Revenue/Average Accounts Receivable
= $450,626/$31,154.30 = 14.44
9. Acid Test Ratio = (Current Assets - Inventory)/ Current Liabilities
= ($464,071.80 - $720)/$39,882.70 = 11.54
10. Basic Earnings Per Share = Net Income/Shares Outstanding
= $23,933.24/4,300 = $5.57
11. Book Value Per Common Share = Stockholders' Equity/Shares Outstanding
= $330,558/4,300 = $76.86
12. Current Ratio = Current Assets/Current Liabilities
= $464,071.80/$39,882.70 = 11.62
13. Days' Sales In Inventory = (Inventory/Cost of Goods Sold) * 365
= ($720/$225,212)*365 = 2
14. Debt Ratio = Total Liabilities/Total Assets
= $204,515.34/$535,073.57 = 0.38
15. Debt To Equity Ratio = Total Liabilities/Total Stockholders' Equity
= $204,515.34/$330,558 = 0.62
16. Dividends Per Share = Total Dividends Paid/Shares Outstanding
= $1,075/4,300 = $0.25
Interpretation:
This company has a high current ratio, indicating it has enough current assets to cover its short-term obligations. However, its inventory turnover is very low, meaning it takes a long time for inventory to sell. The debt ratios show the company is moderately leveraged with debt.
Explanation for Current Ratio:
The current ratio measures a company's ability to pay off its short-term liabilities with its current assets. A ratio above 1 indicates the company has sufficient current assets to cover current liabilities.
Hope this helps! Let me know if you have any other questions.