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The accounting records of Kin Corporation showed the following balances at the end of 2016:...

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Question

Accounting

The accounting records of Kin Corporation showed the following balances at the end of 2016:

Marks-05(0.5 each ratio)

2016

Cash

A/c receivable

Inventory

Short-term investment

Land

Equipment

Less: Accumulated depreciation

Total assets

A/c payable

Accrued liabilities

Bonds payable 8%

Capital stock($5)

Retained earnings

Total equities

Sales

Cost of goods sold

Gross profit

Expenses(including $22,400 interest expense)

Income tax

Net income

$ 25,000

90,000

140,000

5,000

100,000

640,000

(200,000)

800,000

46,000

29,000

280,000

110,000

335,000

800,000

1,600,000

1,120,000

480,000

352,000

48,000

80,000

Cash dividend of $40,000 was paid. All sales were made on credit at a relatively uniform rate during the year. Inventory and receivables did not fluctuate materially. The market price of the companys stock on December 31, 2016 was $86 per share.

Instruction:

Compute the following ratio of 2016:( assume 360 days in a year)

(i) Quick ratio

(ii) Equity ratio

(iii) Earnings per share

(iv) Gross profit ratio

(v) Inventory turnover in days

(vi) Receivable turnover in days

(vii) Return on equity

(viii) Return on Assets

(ix) Gross Profit margin

(x) Net profit margin

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