Question

For the data provided regarding BVD Corp's trial balance at December 31, 20XX, what are the calculations for the following ratios for the company?

a.Working Capital
b.Ratio
c.Return on Stockholders' Equity
d.Earnings Per Share (EPS) (assuming all shares are outstanding)

Answer 1

To calculate ratios for BVD Corp, you need to determine its working capital, ratios, return on stockholders' equity, and earnings per share.

Step-by-step explanation:

To calculate the following ratios for BVD Corp, you will need the following information:

1. Working Capital: Working capital is calculated by subtracting current liabilities from current assets. Current assets include cash, accounts receivable, inventory, and other assets that are expected to be converted into cash within a year. Current liabilities include accounts payable, short-term debt, and other obligations that are due within a year.
2. Ratio: There are different types of ratios that can be calculated, such as liquidity ratios, profitability ratios, and solvency ratios. Examples of liquidity ratios include the current ratio and the quick ratio. Profitability ratios include the return on assets and the return on equity. Solvency ratios include the debt-to-equity ratio and the interest coverage ratio.
3. Return on Stockholders' Equity: This ratio measures the profitability of the company from the perspective of the stockholders. It is calculated by dividing net income by average stockholders' equity.
4. Earnings Per Share (EPS): EPS measures the profitability of the company on a per-share basis. It is calculated by dividing net income by the weighted average number of outstanding shares.