Ratio analysisCompute the specified ratios using Nunez Company;s balance sheet for 2

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Ratio analysis

Compute the specified ratios using Nunez Company’s balance sheet for 2006.

 

Assets

 

Cash

$ 15,000

Marketable Securities

8,000

Accounts Receivable

13,000

Inventory

11,000

Property and Equipment

170,000

Accumulated Depreciation

(12,500)

Total Assets

$204,500

Equities

 

Accounts Payable

$ 8,500

Current Notes Payable

3,500

Mortgage Payable

4,500

Bonds Payable

21,500

Common Stock, $50 Par

110,000

Paid-In Capital in Excess of Par

4,000

Retained Earnings

52,500

Total Liabilities and Stockholders’ Equity

$204,500

 

The average number of common stock shares outstanding during 2006 was 880 shares. Net income for the year was $15,000.

Required

Compute each of the following:

a. Current ratio.

b. Earnings per share.

c. Quick (acid-test) ratio.

d. Return on investment.

e. Return on equity.

f. Debt to equity ratio.