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
|