FIN 402 Expect Success/uophelp.com FIN 402 Expect Success/uophelp.com | Page 12

Current assets

$600,000

Fixed assets

400,000

Current liabilities

300,000

Inventory

200,000

If inventory increases by $100,000, what will be the impact on the current
ratio, the quick ratio, and the net-working-capital-to-total-assets ratio?
Show the ratios before and after the changes.

9. Given the following financial data, compute:

10. Assume the following financial data:
Shares outstanding............................................................................
24,000
a. Compute the P/E ratio (stock price to earnings per share).
b. Compute the book value per share (note that book value equals
stockholders’ equity).
c. Compute the ratio of stock price to book value per share.
d. Compute the dividend yield.
e. Compute the pay out ratio.