Question : 176.From the following information, compute the ratios indicated and place : 1244266

 

176.From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the same as the ending balances for the balance sheet accounts. Round percentages to one decimal place, and show your work.

 

Westwood Corporation

Balance Sheet

December 31, 20×8

Assets

Cash

 

$  15,000

Marketable securities

 

10,000

Accounts receivable (net)

 

20,000

Inventory

 

30,000

Prepaid expenses

 

8,000

Property, plant, and equipment

 

  117,000

Total assets

 

$200,000

 

Liabilities and Stockholders’ Equity

Current liabilities

 

$  30,000

Long-term liabilities

 

50,000

Stockholders’ equity

 

   120,000

Total liabilities and stockholders’ equity

 

$200,000

 

Westwood Corporation

Income Statement

For the Year Ended December 31, 20×8

Net sales

 

$160,000

Cost of goods sold

 

  120,000

Gross margin

 

$  40,000

Operating expenses

 

 

 

Selling and administrative expenses

$ 16,000

 

 

Interest expense

8,000

 

 

Income taxes expense

    4,000

   28,000

Net income

 

$  12,000

 

Westwood had 4,000 shares of common stock issued and outstanding. The market price of common stock at year end was $15.00 per share. Dividends paid in 20×8 were $0.60 per share.

 

Current ratio

 

Asset turnover

 

Quick ratio

 

Return on assets

 

Receivable turnover

 

Return on equity

 

Days’ sales uncollected

 

Debt to equity ratio

 

Inventory turnover

 

Interest coverage ratio

 

Profit margin

 

Days’ inventory on hand

 

Dividends yield

 

Price/earnings (P/E) ratio

 

 

 

 

 

 

 

 

 

177.Financial statements for Boston Corporation are presented below.

 

Boston Corporation

Comparative Balance Sheet

December 31

Assets

              20×8

                20×7

Cash

$   120,000

$   110,000

Accounts receivable (net)

135,000

95,000

Inventory

270,000

240,000

Property, plant, and equipment (net)

     750,000

     800,000

Total assets

$1,275,000

$1,245,000

 

Liabilities and Stockholders’ Equity

Accounts payable

$   152,000

$   208,000

Accrued liabilities

12,000

16,000

Bonds payable, 10 percent

160,000

160,000

Common stock, $10 par

     500,000

     500,000

Retained earnings

     451,000

        361,000

Total liabilities and stockholders’ equity

$1,275,000

$1,245,000

 

 

 

 

 

 

 

 

 

 

 

 

Boston Corporation

Income Statement

For the Year Ended December 31, 20×8

Net sales

 

$1,200,000

Cost of goods sold

 

    700,000

Gross margin

 

$  500,000

Operating expenses

 

 

 

Depreciation expense

$  70,000

 

 

Interest expense

10,000

 

 

Other expenses

  260,000

   340,000

Income before income taxes

 

$ 160,000

Income taxes expense

 

     40,000

Net income

 

$ 120,000

 

Note: Dividends of $0.60 per share were declared and paid during 20×8. The market price of the stock on December 31, 20×8 was $18.00 per share.

 

Compute the following for 20×8 and place your answers in the spaces provided. Round answers to two decimal places. Show your work.

 

Current ratio

 

Payables turnover

 

Receivable turnover

 

Days’ inventory on hand

 

Inventory turnover

 

Interest coverage ratio

 

Asset turnover

 

Return on equity

 

 

 

 

 

 

 

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