Stewart”s 2012 income statement included net sales of $100,000, cost of goods sold of $60,000,…


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Stewart Corporation’s comparative balance sheets are presented below. STEWART CORPORATION Balance Sheets December 31 2012 2011 Cash $ 4,300 $ 3,700 Accounts receivable 21,200 23,400 Inventory 10,000 7,000 Land 20,000 26,000 Buildings 70,000 70,000 Accumulated depreciation—buildings (15,000) (10,000) Total $110,500 $120,100 Accounts payable $ 12,370 $ 31,100 Common stock 75,000 69,000 Retained earnings 23,130 20,000 Total $110,500 $120,100 Stewart’s 2012 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000. Instructions Compute the following ratios for 2012. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders’ equity. (i) Debt to total assets ratio.

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