Vulture Sporting Goods reported the following data at March 31, 2010, with amounts adapted in thousands:
Vulture Sporting Goods Company
Income Statement
For the Year Ended March 31, 2010
(Amounts in thousands)
Net revenues........................ $174,000
Cost of goods sold................ 136,800
All other expenses................ 26,000
Net income........................... $ 11,200
Vulture Sporting Goods Company
Statement of Retained Earnings
For the Year Ended March 31, 2010
(Amounts in thousands)
Retained earnings, March 31, 2009............... $ 2,000
Add: Net income............................................ 11,200
Retained earnings, March 31, 2010............... $13,200
Vulture Sporting Goods Company
Balance sheet
For the Year Ended March 31, 2010
Assets
Current
Cash ............................... 1300
Account recievable ....................28200
Inventories............................... 37000
Other current assets.................5200
Total current assets.................71700
Property and equipment net..............6000
Other assets ..............................28000
Total assets..........................105700
Liabilities
Current liabilities.........................53000
Long term liabilities.....................12500
Total liabilities.............................65500
Stockholder,s equity
Common stock.....................27000
Retained earnings...............13200
Total stockholder's equity........................40200
Total liabilities and stockholder's equity.................105700
1. Compute Vultures current ratio. Round to two decimal places.
2. Compute Vultures debt ratio. Round to two decimal places.
Do these ratio values look strong, weak, ormiddle-of-the-road?
