November 2023 Case 5 23 Net income 16000 Short term note 5000 Bonds interest rate 0 08

Integrating Case 5-23 Problem

Business Finance

Case 5-23

Net income16000

Short term note5000

Bonds interest rate0.08

Cash balance15000

Profit margin on sales0.05

Return on assets0.075

Gross profit margin0.4

Inventory turnover ratio6

Receivables turnover ratio25

Acid test ratio0.9

Current ratio2

Return on shareholders equity0.1

Debt to equity ratio0.33

Times interest earned12



Integrating Case 5-23



Balance Sheet



Accounts receivable (net)(e)
Prepaid expenses and other current assets(i)
Current assets(h)
Property, plant, and equipment (net)(j)

Liabilities and Shareholders’ Equity
Accounts payable$(g)

Short-term notes5,000
Current liabilities(f)
Bonds payable(l)
Shareholders’ equity

Income Statement

Cost of goods sold(c)
Gross profit(c)
Operating expenses(o)
Interest expense(m)
Tax expense(n)
Net income$