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The Balance Sheet and Income Statement for Becker,Becker & Becker

Question 14

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The balance sheet and income statement for Becker,Becker & Becker is presented below.
The balance sheet and income statement for Becker,Becker & Becker is presented below. a.Compute the following ratios: Current ratio,Acid test ratio,Debt ratio,Total asset turnover,Operating profit margin,Return on total investments,Times interest earned,Inventory turnover. b.All other things equal,compute the dollar amount of sales needed to achieve an 18% return on total assets for the coming year. c.Given Becker's inventory turnover ratio,find a way of computing the current level of inventory given this ratio and assuming the current level of inventories is unknown.Set up but do not solve. a.Compute the following ratios:
Current ratio,Acid test ratio,Debt ratio,Total asset turnover,Operating profit margin,Return on total investments,Times interest earned,Inventory turnover.
b.All other things equal,compute the dollar amount of sales needed to achieve an 18% return on total assets for the coming year.
c.Given Becker's inventory turnover ratio,find a way of computing the current level of inventory given this ratio and assuming the current level of inventories is unknown.Set up but do not solve.

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b..18 = .13 × sale...

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