Problem 13-4A Calculation of financial statement ratios Selected year-end financial statements of McCord Corporation follow. (Note:

Problem 13-4ACalculation of financial statement ratios Selected year-end financial statements of McCord Corporation follow. (Note: All sales are on credit; selected balance sheet amounts at December 31, 2010, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.)McCORD CORPORATIONIncome StatementFor Year Ended December 31, 2011Sales . . . . . . . . . . . . . . . . . . . $348,600Cost of goods sold . . . . . . . . 229,150Gross profit . . . . . . . . . . . . . 119,450Operating expenses . . . . . . . . 52,500Interest expense . . . . . . . . . . 3,100Income before taxes . . . . . . . 63,850Income taxes . . . . . . . . . . . . . 15,800Net income . . . . . . . . . . . . . . $ 48,050McCORD CORPORATIONBalance SheetDecember 31, 2011Assets Liabilities and EquityAccounts payable . . . . . . . . . . . . . . . . . . $ 16,500Accrued wages payable . . . . . . . . . . . . . . 2,200Income taxes payable . . . . . . . . . . . . . . . . 2,300Long-term note payable, securedby mortgage on plant assets . . . . . . . . . 62,400Common stock, $1 par value . . . . . . . . . . 90,000Retained earnings . . . . . . . . . . . . . . . . . . 59,800Total liabilities and equity . . . . . . . . . . . . . $233,200RequiredCompute the following: (1) current ratio, (2) acid-test ratio, (3) days’ sales uncollected, (4) inventory turnover, (5) days’ sales in inventory, (6) ratio of pledged assets to secured liabilities, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) returnon common stockholders’ equity.Check Acid-test ratio, 2.3 to 1; Inventory turnover, 7.2