Accounting Test Question IFS No 3 : Interpretation Of Financial Statements

November 10th, 2006 Comments off
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Accounting Test Question No IFS 3:

Append below Company XYZ’s Income Statement and Balance Sheet:

Income Statement ($’000)

2005

Net Sales

7,100

Interest expense

40

Income tax expense

150

Net Income

210

Balance Sheet ($’000):-

Assets

2005

Cash

200

Accounts Receivable

810

Inventory

830

Property, plant and equipment ( net)

2,590

Total Assets

4,430

Liabilities & Shareholders’ Equity

Current liabilities

710

Long-term liabilities

550

Paid-in capital

1,500

Retained earnings

1,670

Total Liabilities & Shareholders’ Equity

4,430

Required:

Determine the following ratios for 2005:

(a) current ratio

(b) acid-test ratio

(c) debt to equity ratio

(d) times interest earned ratio

[ Refer Answer ]

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