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QUESTION

(Chapter 14) Presented below is the financial date for Gaines Company: GAINES COMPANY Comparative Balance Sheet December 31 Assets 20X3 20X2 Cash .

$500,000

Income Statement For the Year Ended December 31, 20X3

Net sales ................................................................................................................. $400,000

Cost of goods sold................................................................................................... 240,000

Gross profit............................................................................................................. 160,000

Expenses Operating expenses......................................................................................... $42,000

Interest expense.............................................................................................. 18,000

Total expenses.......................................................................................... 60,000

Income before income taxes.................................................................................. 100,000

Income tax expense................................................................................................ 30,000

Net income ............................................................................................................. $ 70,000

Additional information: a. Cash dividends of $30,000 were declared and paid in 20X3.

b. Weighted-average number of shares of common stock outstanding during 20X3 was 30,000 shares.

c. Market value of common stock on December 31, 20X3, was $21 per share.

Instructions Compute the following ratios for Gaines Company for 20X3:

(A) Current ratio (B) Return on common stockholders' equity (C) Price -earnings ratio (D) Acid-test ratio (e) Receivables turnover 

I need answers all A-E

Thank you!

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