Question

Use the below information to answer the following question.

Answer 1

Answer:

Follows are the solution to the given point:

Explanation:

The formula for calculating the Quick Ratio:

$\text{Quick Ratio} = \frac{\text{Quick Assets}}{\text{Current Liabilities}}$

                    $= \frac{43700+86150}{104300}\\\\=\frac{ 129850}{104300} \\\\= 1.24$

$\text{Sales days Receivable at end of year} = (\frac{\text{Account receivables at the end}}{\text{Gross sales by loan}} ) \times \text{number of days}$                                                         $= \frac{86150}{631000} \times 365 \\\\ = 49.833 \\\\ = 50\ days$

$\text{Sales price ratio} = \frac{\text{Sales per share price}}{\text{ Sales Share price}}$

                         $=\frac{43.20}{\frac{63100}{82000}}\\\\ = \frac{43.20}{0.769}\\\\ = 5.61$

$\text{total equity Debt} = \frac{ \text{Complete Liabilities}}{\text{Stockholders}}$

                           $= \frac{882400}{(397900+82000)}\\\\ = \frac{882400}{(479,900)}\\\\ = \frac{882400}{(479,900)}\\\\= 1.838$

$\text{Equity Return} = \frac{\text{Net Sales}}{\text{Equity of Shareholder}} \times 100$

                           $= \frac{96200}{(82000+397900)} \times 100 \\\\ = \frac{96200}{(479900)} \times 100 \\\\= 0.2004 \times 100\\\\= 200.4 \ \%$

Dividends received throughout the year = Restored earnings opening + Net Sales -Closing of restored profits

                                              $= 309000 + 96200 - 397900 \\\\= 7300$