# Financial and Managerial Accounting: P17-4A Selected year-end financial statements of McCord

Financial and Managerial Accounting
Problem 17-4A Calculation of financial statement ratios
Selected year-end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, \$50,900; total assets, \$259,400; common stock, \$90,000; and retained earnings, \$52,348.)
McCORD CORPORATION
Income Statement
For Year Ended December 31, 2011
Sales 454,600
Cost of goods sold 297,450
Gross profit 157,150
Operating expenses 98,800
Interest expense 4,300
Income before taxes 54,050
Income taxes 21,774
Net income \$32,276

McCORD CORPORATION
Balance Sheet
December 31, 2011
Assets Liabilities and Equity
Cash 12,000 Accounts payable 23,500
Short-term investments 9,200 Accrued wages payable 4,000
Accounts receivable, net 30,000 Income taxes payable 3,700
Notes receivable (trade)* 5,500 Long-term note payable, secured
Merchandise inventory 34,150 by mortgage on plant assets 72,400
Prepaid expenses 2,500 Common stock 90,000
Plant assets, net 147,300 Retained earnings 47,050
Total ssets \$240,650 Total liabilities and equity \$240,650
* These are short-term notes receivable arising from customer (trade) sales.

Required:
Compute the following. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the "%" sign in your response):
(1) Current ratio
(2) Acid-test ratio
(3) Days' sales uncollected (including note) days
(4) Inventory turnover times
(5) Days' sales in inventory days
(6) Debt-to-equity ratio to
(7) Times interest earned times
(8) Profit margin ratio
(9) Total asset turnover times
(10) Return on total assets
(11) Return on common stockholders' equity