Monday, August 22, 2011

E14-11 Scully Corporation's comparative balance sheets are presented below

ACCOUNTING



ACC 560 Week 10 Assignment



E14-11 Scully Corporation's comparative balance sheets are presented below.



SCULLY CORPORATION

Balance Sheets

December 31

2008 2007

Cash $ 4,300 $ 3,700

Accounts receivable 21,200 23,400

Inventory 10,000 7,000

Land 20,000 26,000

Building 70,000 70,000

Accumulated depreciation (15,000) (10,000)

Total $110,500 $120,100



Accounts payable $ 12,370 $ 31,100

Common stock 75,000 69,000

Retained earnings 23,130 20,000

Total $110,500 $120,100



Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.



Instructions

Compute the following ratios for 2008. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders' equity. (i) Debt to total assets ratio.



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