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Provided Below Are the Comparative Income Statement and Balance Sheet

Question 151

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Provided below are the comparative income statement and balance sheet for Aloha Company at, and for the years ended, December 31, 20X6 and 20X5. 20X620X5 Sales (all on account) $1,70$1,606 Cost of goods sold 1,126‾1,022‾ Gross profit $576$584 Operating expenses 318‾280 Operating income $258$304 Interest expense 7268 Income before taxes $18694 Income tax expense 7494 Net income $112$142\begin{array}{lll}&20X6&20X5\\\text { Sales (all on account) } & \$ 1,70 & \$ 1,606 \\\text { Cost of goods sold } & \underline{1,126} & \underline{1,022} \\\text { Gross profit } & \$ 576 & \$ 584 \\\text { Operating expenses } & \underline{318} & 280\\\text { Operating income } & \$ 258 & \$ 304 \\\text { Interest expense } &{72}&{68} \\\text { Income before taxes } & \$ 186 & 94 \\\text { Income tax expense } & 74 & 94\\\text { Net income }&\$112&\$142\end{array}
Provided below are the comparative income statement and balance sheet for Aloha Company at, and for the years ended, December 31, 20X6 and 20X5. \begin{array}{lll}&20X6&20X5\\ \text { Sales (all on account) } & \$ 1,70 & \$ 1,606 \\ \text { Cost of goods sold } & \underline{1,126} & \underline{1,022} \\ \text { Gross profit } & \$ 576 & \$ 584 \\ \text { Operating expenses } & \underline{318} & 280\\\text { Operating income } & \$ 258 & \$ 304 \\ \text { Interest expense } &{72}&{68} \\ \text { Income before taxes } & \$ 186 & 94 \\ \text { Income tax expense } & 74 & 94\\ \text { Net income }&\$112&\$142 \end{array} Determine the following ratios for 20X6 given the above information: 1. the current ratio 2. the average collection period in days 3. the return on stockholders' equity 4. the price- earnings ratio 5. the dividend yield Determine the following ratios for 20X6 given the above information:
1. the current ratio
2. the average collection period in days
3. the return on stockholders' equity
4. the price- earnings ratio
5. the dividend yield

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1. Current ratio:
$366 / $226 = 1.62 tim...

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