Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 16, Problem 19E
A)
To determine
Compute ratio of Fixed Assets to Long-Term Liabilities.
B)
To determine
Compute Ratio of Liabilities to
- (a) Asset turnover ratio
- (b) Return on total assets
- (c) Return on stockholders’ equity
- (d) Return on common stockholders’ equity
C)
To determine
Compute asset turnover ratio.
- (a) Return on total assets
- (b) Return on stockholders’ equity
- (c) Return on common stockholders’ equity
D)
To determine
Compute Return on total assets.
- (a) Return on stockholders’ equity
- (b) Return on common stockholders’ equity
F)
To determine
Compute return on common stockholders’ equity.
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Assuming that long-term investments totaled $3,000,000 throughout theyear and that total assets were $7,000,000 at the beginning of the currentfiscal year, determine the following: (A) ratio of fixed assets to long-termliabilities, (B) ratio of liabilities to stockholders' equity, (C) assetturnover, (D) return on total assets, (E) return on stockholders" equity,and (F) return on common stockholders' equity. (Round ratios andpercentages to one decimal place as appropriate.)
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Compute the (a) current ratio and ( acid-test ratio.
Complete this question by entering your answers in the tabs below.
Currlat Ratio Acid Test Ratio
Compute the current ratio.
Current Ratio
Current Ratio
Numerator:
Denominator:
Current assets
Current liabilities
Current ratio
72.800
%24
28,000
2.6 to 1
%3
Acid Test Ratio>
Chapter 16 Solutions
Managerial Accounting
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