The following are the year-end balances of Salter Corporation for 2006 and 2007:
31-Dec-07 31Dec06
Cash $ 65,000 $ 45,000
Accounts Receivable 80,000 50,000
Inventory 55,000 25,000
Property, Plant, and Equip 500,000 400,000
Total assets $700,000 $520,000
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Accounts Payable 75,000 60,000
Bonds Payable (due in 2009) 100,000 100,000
Capital Stock 300,000 200,000
Retained Earnings 225,000 160,000
Total liabilities & Equity $700,000 $520,000
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Required: If income for 2007 was $150,000, provide the following information as of December 31, 2007: (Don’t forget the articulation of statements discussed during Week 2 and 3- including retained earnings).
a. Dividends declared (2007 only) =
b. Current ratio (2007 only) =
c. Debt-to-equity ratio (2007 only) =
