Comparative statements of MS Rakeeb Corporation are presented below:

MS Rakeeb Corporation
Income Statement
For the years ended December 31
Net sales
Cost of goods sold
Gross profit
Selling & administrative expenses
Income from operations
Other expenses & losses
Interest expense
Income before income taxes
Income tax expense
Net income

2011
780,000
440,000
340,000
143,880
196,120

9,920
186,200
25,300
160,900

2010
624,000
405,600
218,400
149,760
68,640
7,200
61,440
24,000
37,440

MS Rakeeb Corporation
Balance Sheet
December 31
2011

2010

Assets
Current assets
Cash
Short-term investments
Accounts receivable (net)
Inventory
Total current assets
Plant Assets
Total assets

23,100
34,800
106,200
122,400
286,500
465,300
751,800

184,200
25,300
209,500
132,000
341,500

21,600
33,000
93,800
64,000
212,400
459,600
672,000

Liabilities & Stockholders Equity

Current liabilities
Accounts payable
P
Income taxes payable
Total current liabilities
Bonds Payable
Total liabilities
Stockholders' equity
Common stock (P10 par)
Retained earnings
Total stockholders' equity
Total liabilities & stockholders equity P

140,000
270,300
410,300
751,800

132,000
24,000
156,000
120,000
276,000
150,000
246,000
396,000
672,000

On July 1, 2011, 1,000 shares were repurchased and cancelled. All

sales were on account. Net cash provided by operating activities

was P36,000.
Instructions: Compute the following ratios for 2011 & 2010
Follow the format shown below.
a Earnings per share
b Return on common stockholder's equity
c Return on assets
d Current ratio
e Acid-test ratio
f Accounts receivable turnover
g Average collection period
h Inventory turnover
i Days in inventory
j Times interest earned
k Assets turnover
l Debt to total assets
m Gross profit ratio
n Net profit ratio
o Working capital
p Leverage ratio
q Return on investment
FORMAT
formula
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q

Earnings per share

Return on common stockholder's equity
Return on assets
Current ratio
Acid-test ratio
Accounts receivable turnover
Average collection period
Inventory turnover
Days in inventory
Times interest earned
Assets turnover
Debt to total assets
Gross profit ratio
Net profit ratio
Working capital
Leverage ratio
Return on investment

computation

answer