Problem 146A Your answer is partially correct Try again The

Problem 14-6A Your answer is partially correct. Try again The comparative statements of Corbin Company are presented below. CORBIN COMPANY Income Statement For the Years Ended December 31 2017 2016 Net sales (all on account) Expenses $595,000 $520,000 Cost of goods sold Selling and administrative Interest expense Income tax expense 415,000 120,800 7,800 15,000 558,600 $36,400 354,000 114,800 6,000 14,000 488,800 31,200 Total expenses Net income CORBIN COMPANY Balance Sheets December 31 Assets 2017 2016 Current assets Cash Short-term investments Accounts receivable (net) Inventory 21,000 18,000 91,000 85,000 18,000 15,000 74,000 70,000

Solution

Ans b Acid Test Ratio Total current assets-inventory/Current liabilities (215000-85000)/145000 0.90 ans g Return on assets Net income/Avg total assets*100 36400/((638000+560000)/2)*100 6.1 % ans h Return on stockholder euity Net income/Avg stockholder euity*100 36400/((373000+350000)/2)*100 10.1 % ans i Payout ratio Dividend paid/Net earnings*100% 13400/36400*100 36.8 % Dividend paid=223000-(200000+36400) -13400 ans l Debt to asset ratio 265000/638000*100 41.5 % If any doubt please comment