1. END OF CHAPTER PROBLEMS

2. 4.1 The Abercrombie Supply Company reported the following information for Prepare a common size income statement for the year ended June 30, 2011.
Abercrombie Supply Company
Income Statement for the Fiscal Year Ended June 30, 2011 (in $ thousands)

3. Solution: The common-size income statement for Abercrombie Supply Company should look like follow:

4. 4.2 Prepare a common-size balance sheet from the following information for Abercrombie Supply Company.
Abercrombie Supply Company
Balance Sheet as of June 30, 2011 (in $ thousands)

5. Solution: The common-size balance sheet statement for Abercrombie Supply Company should look like follow:

6. 4.3 Using the 2011 data above for Abercrombie Supply Company calculate the following liquidity ratios: a. Current Ratio b. Quick Ratio
Solution:

7. 4.4 Refer above to the balance sheet and income statement for Abercrombie Supply Company for the year ended June 30, Calculate the following ratios: a. Inventory turnover ratio b. Days’ sales outstanding c. Total asset turnover d. Fixed asset turnover e. Total debt ratio f. Debt-to-equity ratio g. Times interest earned ratio h. Cash coverage ratio.

8. Solution: