90.2K

Verified Solution

Link Copied!

o Problem: Module 4 Textbook Problem 10 Learning Objectives: 4-2 Calculate ratios for assessing a company's liquidity 4-3 Calculate ratios for assessing a company's solvency 4.4 Calculate ratios for assessing a company's managerial effectiveness 4-5 Calculate ratios for assessing a company's position in the stock market Following is the balance sheet of Gibson Company for Year 3: GIBSON COMPANY Balance sheet Assets Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 15,450 7,900 13,220 10,750 166,000 (12,600) $200, 720 $ 8,210 3,800 4,800 21,840 113, 100 48,970 $200,720 The average number of common stock shares outstanding during Year 3 was 850 shares. Net income for the year was $15,900. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.) X Answer is not complete. a. Current ratio 3.94 b. Earnings per share 18.71 per share C. 3.04 d. % Quick (acid-test) ratio Return on investment Return on equity Debt to equity ratio e % 1

Answer & Explanation Solved by verified expert

See Answer