Using the financial statements for the Goodyear Calendar Company, calculate
the 13 basic ratios
To calculate the 13 basic ratios for the Goodyear Calendar Company, you'll need the financial statements of the company. The financial statements typically include the balance sheet, income statement, and cash flow statement. Once you have these statements, you can use the following formulas to calculate the ratios:
1. Current Ratio: Current Assets / Current Liabilities
2. Quick Ratio: (Current Assets - Inventory) / Current Liabilities
3. Cash Ratio: Cash and Cash Equivalents / Current Liabilities
4. Debt-to-Equity Ratio: Total Debt / Total Equity
5. Debt Ratio: Total Debt / Total Assets
6. Equity Ratio: Total Equity / Total Assets
7. Gross Profit Margin: (Revenue - Cost of Goods Sold) / Revenue
8. Operating Profit Margin: Operating Income / Revenue
9. Net Profit Margin: Net Income / Revenue
10. Return on Assets (ROA): Net Income / Total Assets
11. Return on Equity (ROE): Net Income / Total Equity
12. Inventory Turnover Ratio: Cost of Goods Sold / Average Inventory
13. Accounts Receivable Turnover Ratio: Net Sales / Average Accounts Receivable
To calculate these ratios, you'll need the corresponding values from the financial statements. Once you have the necessary data, plug the values into the formulas to obtain the ratios. Keep in mind that some ratios may require average values for certain items (e.g., average inventory or average accounts receivable) for more accurate results.