Selected year end financial statements of Overland Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $16,400; total assets, $95,900; common stock, $41,500; and retained earnings, $19,800.)
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OVERLAND CORPORATION Income Statement For Year Ended December 31,2011 |
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Sales |
$215,500 |
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Cost of goods sold |
136,100 |
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Gross profit |
79,400 |
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Operating expenses |
50,200 |
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Interest expense |
1,200 |
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Income before taxes |
28,000 |
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Income taxes |
2,200 |
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Net income |
$ 25,800 |
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OVERLAND CORPORATION |
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Assets |
Liabilities and Equity |
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Cash |
$5,100 |
Accounts payable |
$10,500 |
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Short term investments |
5,900 |
Accrued wages payable |
2,300 |
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Accounts receivable, net |
11,100 |
Income taxes payable |
1,600 |
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Notes receivable (trade)* |
2,000 |
Long term note payable, secured |
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Merchandise inventory |
12,500 |
by mortgage on plant assets |
25,000 |
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Prepaid expenses |
1,000 |
Common stock, $5 par value |
41,000 |
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Plant assets, net |
72,900 |
Retained earnings |
$30,100 |
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Total assets |
$110,500 |
Total liabilities and equity |
$110,500 |
Required
Compute the following: (1) current ratio, (2) acid test ratio, (3) days’ sales uncollected, (4) inventory turnover, (5) days’ sales in inventory, (6) debt to equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders’ equity.