Question : 153. Selected balances from a company’s financial statements shown below: Dec. 31, : 1256452

 

153. Selected balances from a company’s financial statements are shown below: 

 

Dec. 31, 2013

Dec. 31, 2014

For the Year 2014

Merchandise inventory

$ 15,000

$ 20,000

 

Accounts payable

32,000

26,000

 

Salaries payable

4,400

3,000

 

Accounts receivable

24,000

21,000

 

Total assets

234,000

286,000

 

Sales (all on credit)

 

 

$312,000

Cost of goods sold

 

 

165,600

Salaries expense

 

 

48,000

Other expenses

 

 

75,000

Net income

 

 

24,000

Use the information above to calculate the following current year ratios: (a) 2014 inventory turnover.(b) Days’ sales uncollected at Dec. 31, 2014.(c) 2014 profit margin.(d) 2011 return on total assets.

 

 

154. The following selected company information was reported: 

Accounts receivable, beginning-year

$170,000

Accounts receivable, year-end

190,000

Merchandise inventory, beginning-year

80,000

Merchandise inventory, year-end

60,000

Cost of goods sold

580,000

Credit sales

1,000,000

Calculate the following company ratios: (a) Accounts receivable turnover(b) Inventory turnover(c) Days’ sales uncollected

 

 

155. Selected current year company information follows: 

Net income

$  325,000

Net sales

4,700,000

Total liabilities, beginning-year

550,000

Total liabilities, end-of-year

530,000

Total stockholders’ equity, beginning-year

760,000

Total stockholders’ equity, end-of-year

745,000

Calculate the following company ratios: (a) Profit margin.(b) Total asset turnover.(c) Return on total assets.(d) Return on common stockholders’ equity (assume the company has no preferred stock).

 

 

156. Use the following information from the current year financial statements of a company to calculate the ratios below: (a) Current ratio.(b) Accounts receivable turnover. (Assume the prior year’s accounts receivable balance was $100,000.)(c) Days’ sales uncollected.(d) Inventory turnover. (Assume the prior year’s inventory was $50,200.)(e) Times interest earned ratio.(f) Return on common stockholders’ equity. (Assume the prior year’s common stock balance was $480,000 and the retained earnings balance was $128,000.)(g) Earnings per share (assuming the corporation has a simple capital structure, with only common stock outstanding).(h) Price earnings ratio. (Assume the company’s stock is selling for $26 per share.)(i) Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.) 

Income statement data:

 

Sales (all on credit)

$1,075,000

Cost of goods sold

575,000

Gross profit on sales

$  500,000

Operating expenses

305,000

Operating income

$  195,000

Interest expense

20,400

Income before taxes

$  174,600

Income taxes

74,000

Net income

$  100,600

 

Balance sheet data:

 

Cash

$  38,400

Accounts receivable

120,000

Inventory

56,700

Prepaid Expenses

24,000

Total current assets

$239,100

Total plant assets

708,900

Total assets

$948,000

Accounts payable

$  91,200

Interest payable

4,800

Long-term liabilities

204,000

Total liabilities

$300,000

Common stock, $10 par

480,000

Retained earnings

168,000

Total liabilities and equity

$948,000

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more