E10-88. Ratio analysis. (LO 3)
Hutson Coffee Shops reported the following for the two most recent fiscal years.
|
December 31 |
2010 |
2009 |
|
Cash |
$ 34,000 |
$ 17,000 |
|
Receivables(net) |
85,000 |
80,000 |
|
Merchandise inventory |
74,000 |
48,000 |
|
Fixed assets |
365,000 |
324,O00 |
|
Total assets |
$558,000 |
$469,000 |
|
Accounts payable |
65,000 |
83,000 |
|
Long-term notes payable |
82,000 |
112,000 |
|
Common stock |
175,000 |
144,000 |
|
Retained earnings |
235,000 |
130,000 |
|
Total liabilities and shareholder’s equity |
$558,000 |
$469,000 |
|
Net income for the year ended 12/31/1O |
$115,000 |
|
|
Sales(all sales were on account ) |
620,000 |
|
|
Cost of goods sold |
284,000 |
|
|
Interest expense |
3,000 |
Calculate the following for the year ended December 31,2010.
a. Current ratio
b. Working capital
c. Accounts receivable turnover ratio
d. Inventory turnover ratio
e. Return on assets
f. Return on equity