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Question
Carson Inc. reported net sales revenue of $850,000 and paid no dividends during the current year. The following information is also available at the end of the current and prior years:
| Current Year | Prior Year | |
| Total Current Assets | $ 500,000 | $ 450,000 |
| Property, Plant, and Equipment, Net | 850,000 | 700,000 |
| Total Current Liabilities | 225,000 | 195,000 |
| Total Long-Term Liabilities | 300,000 | 250,000 |
| Common Stock, $5 Par | 500,000 | 500,000 |
| Paid-In Capital in Excess of Par | 100,000 | 100,000 |
| Retained Earnings | 225,000 | 105,000 |
There was no preferred stock outstanding during the current year.
Required:
Part a. Calculate the return on equity for the current year.
Part b. Calculate the debt-to-assets ratio for the current year.
Part c. Calculate the fixed asset turnover ratio for the current year.
Part d. Calculate the current ratio for the current year.
Round all ratios to two decimal points.
Answer
This answer is hidden. It contains 576 characters.
Related questions
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Q:
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Q:
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Required:
Part a. Prepare the closing entries dated December 31, 2016.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entries, and then determine the ending balance.