BMATWT 353 - Business of Building
Calculating Financial Ratios
In-Class Assignment - Tuesday April 22
XYZ Corporation Reports the Following data in its Dec. 31, 2007 Financial Statements:
Gross Sales $450,000 Current assets $60,000 Long-term assets $50,000 Current liabilities $30,000 Long-term liabilities $88,000 Owners' Equity
$120,000 Net Income $12,000 A) Calculate: Current ratio
B) Calculate: The amount of Working Capital that XYZ has.
C) Calculate: Debt-to-equity ratio
D) Calculate: Return on Equity ratio
XYZ also posted the following activity over the 2007 fiscal year:
INventory 1/1/07 $40,000 Inventory 12/31/2007 $80,000 Cost of Goods Sold - 2007 $300,000
E) Calculate: Inventory Turnover Ratio
Produced and maintained by David
T. Damery
Building Materials and Wood Technology
Department of Natural Resources Conservation
College of Natural Resources and the Environment
University of Massachusetts, Amherst.