(SOLVED) Ink has spilled over some of the entries in the


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Ink has spilled over some of the entries in the balance sheet and income
Long-term debt ratio…………………………….0.4
Times interest earned…………………………….6.5
Current ratio……………………………………..1.4
Quick ratio……………………………………….1.0
Cash ratio………………………………………..0.2
Return on assets…………………………………18%
Return on equity………………………………..20.53%
Inventory turnover………………………………5.4
Average collection period………………………83.74 days
Income Statement (millions of dollars)
Net sales…………………………………………………. ∙ ∙ ∙
Cost of goods sold……………………………………….∙ ∙ ∙
Selling, general, and administrative expenses……………10
Depreciation………………………………………………20
Earnings before interest and taxes (EBIT) ………………∙ ∙ ∙
Interest expense………………………………………….∙ ∙ ∙
Income before tax………………………………………..∙ ∙ ∙
Tax……………………………………………………….∙ ∙ ∙
Net income………………………………………………∙ ∙ ∙
statement of ABC Corp. Can you use the following information to work out the missing entries? The ratio definitions in Table 4.6 were used.

Answer

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