Following is the balance sheet of Vernon Company for Year 3: VERNON COMPANY Balance sheet As
Following is the balance sheet of Vernon Company for Year 3:
| VERNON COMPANY | |||
| Assets |
|
|
|
| Cash | 14,700 |
| |
| Marketable securities |
| 8,420 |
|
| Accounts receivable |
| 12,740 |
|
| Inventory |
| 11,050 |
|
| Property and equipment |
| 167,500 |
|
| Accumulated depreciation |
| (12,700 | |
| Total assets | 201,710 |
| |
| Liabilities and Stockholders’ Equity |
|
|
|
| Accounts payable | 8,780 |
| |
| Current notes payable |
| 3,240 |
|
| Mortgage payable |
| 4,650 |
|
| Bonds payable |
| 22,020 |
|
| Common stock |
| 113,700 |
|
| Retained earnings |
| 49,320 |
|
| Total liabilities and stockholders’ equity | 201,710 |
| |
The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $16,000.
Required
Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.)
| Current ratio | |||
| Earnings per share | Per share | ||
| Quick (acid test) ratio | |||
| Return on investment | |||
| Return on equity | |||
| Debt to equity ratio |
