Scully Corporation’s comparative balance sheets are presented below.

Scully Corporation’s comparative balance sheets are presented below.

 

SCULLY CORPORATION

Balance Sheets

December 31

 

                                           2011
                      2010

 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 2011 income statement included net sales of $100,000, cost of goods sold $60,000, and net income of $15,000.

 

Compute the following ratios for 2011:

 

(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