Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below.
Sales: 443,555
Operating Costs: 326,133
Depreciation: 10,000
Interest Expense: 5,000
Tax Expense: 29,408
Cash: 1,000
Receivables: 30,000
Inventories: 54,355
Fixed Assets, Net: 50,000
Payables: 11,000
Accrued Expenses: 10,000
Long-Term Loan: 50,000
Common Equity: 64,355
Prepare an income statement and a balance sheet for this company using the information provided. Calculate the following financial ratios:
1. Current ratio
2. Quick ratio
3. NWC-to-total-Assets (Working capital to assets)
4. Ratio of total debt and liabilities to total assets
5. Ratio of total debt and liabilities to shareholder's equity
6. Interest coverage
7. Net profit margin
8. Sales to total assets (Asset turnover)
9. Return on assets
10. Equity multiplier
11. Return on equity