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Accounting Test Question No IFS 3:
Append below Company XYZ’s Income Statement and Balance Sheet:
Income Statement ($’000)
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2005
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Net Sales
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7,100
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Interest expense
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40
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Income tax expense
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150
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Net Income
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210
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Balance Sheet ($’000):-
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Assets
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2005
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Cash
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200
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Accounts Receivable
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810
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Inventory
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830
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Property, plant and equipment ( net)
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2,590
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Total Assets
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4,430
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Liabilities & Shareholders’ Equity
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Current liabilities
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710
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Long-term liabilities
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550
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Paid-in capital
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1,500
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Retained earnings
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1,670
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Total Liabilities & Shareholders’ Equity
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4,430
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Required:
Determine the following ratios for 2005:
(a) current ratio
(b) acid-test ratio
(c) debt to equity ratio
(d) times interest earned ratio
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