Chapter 11
Financial Statement Analysis
572
c) Calculate the interest coverage ratio.
d) Calculate the return on equity.
AP-3B (
3
)
GoliathGardening Services Ltd. reports current assets of $6,261, and current liabilities of $2,925.
Calculate the current ratio. Comment on the company’s ability to cover short-term obligations.
AP-4B (
3
)
Selected financial data from Jai Home Company is provided below.
Cash
$85,000
Accounts Receivable
$233,000
Inventory
$267,000
Short‐Term Investments
$50,000
Land and Building
$464,000
Current Portion of Non‐Current Debt
$36,000
Accounts Payable
$117,000
Required
a) Calculate the quick ratio.
