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Use the following information to answer the next two questions

Use the following information to answer the next two questions:

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.

 

Current liabilities

$   180

 

Income before interest and taxes

$  125

10% Bonds, long-term

    360

 

Interest expense

    36

Total liabilities

   540

 

Income before tax

89

Stockholders’ equity

 

 

Income tax

     27

Common stock

200

 

Net income

$   62

Retained earnings

    280

 

 

 

Total stockholders’ equity

    480

 

 

 

Total liabilities and equity

$1,020

 

 

 

 

 

 

 

 

 

79. HHF's debt to equity ratio is:

a.0.75.

b.1.13.

c.0.38.

d.1.80.

 

 

80. HHF's times interest earned ratio is:

a.3.47.

b.1.72.

c.2.47.

d.10.0.

 

 

 

Excerpts from Stealth Company's December 31, 2015 and 2014, financial statements are presented below:

 

    2015

    2014

Accounts receivable

$ 40,000

$ 36,000

Inventory

28,000

35,000

Net sales

190,000

186,000

Cost of goods sold

114,000

108,000

Total assets

425,000

405,000

Total stockholders’ equity

240,000

225,000

Net income

32,500

28,000

 

 

81. Stealth Company’s 2015 receivables turnover ratio is:

a.2.85.

b.4.70.

c.5.00.

d.10.63.

 

 

82. Stealth Company’s 2015 average collection period is:

a.73 days.

b.104 days.

c.109 days.

d.128 days.

 

 

              83. Stealth Company’s 2015 inventory turnover is:

a.3.62 times.

b.3.96 times.

c.4.07 times.

d.6.03 times.

 

 

84. Stealth Company’s 2015 average days in inventory is:

a.60.5 days.

b.92.2 days.

c.100.8 days.

d.89.7 days.

 

 

              85. Stealth Company’s 2015 debt to equity ratio is:

a.77.1%.

b.80.0%.

c.40.0%.

d.60.0%.

 

 

              86. Stealth Company’s 2015 gross profit ratio is:

a.77.1%.

b.80.0%.

c.40.0%.

d.60.0%.

 

 

Jan 27 2020 View more View Less

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