Question : 172. The following data taken from the balance sheet at the : 1234285

 

172. The following data are taken from the balance sheet at the end of the current year. Determine the (a) working capital, (b) current ratio, and (c) acid-test ratio. Present figures used in your computations. Round ratios to the nearest tenth. 

Accounts payable

$145,000

Accounts receivable

110,000

Accrued liabilities

4,000

Cash

80,000

Income tax payable

10,000

Inventory

140,000

Marketable securities

250,000

Notes payable, short-term

85,000

Prepaid expenses

15,000

 

 

173. The following data are taken from the financial statements: 

 

Current

Preceding

 

Year

Year

Net sales

$3,600,000

$4,000,000

Cost of goods sold

2,000,000

2,700,000

Average monthly inventory

332,000

328,000

Inventory, end of year

372,000

347,000

 

 

 

 

(a)

Determine for each year (1) the inventory turnover and (2) the number of days’ sales in inventory.

(b)

Comment on the favorable and unfavorable trends revealed by the data.

 

 

 

174. The following data are taken from the financial statements: 

 

Current

Preceding

 

Year

Year

Average accounts receivable (net)

$123,000

$  95,000

Accounts receivable (net), end of year

129,012

87,516

Net sales on account

950,000

825,000

 

 

 

 

(a)

Assuming that credit terms on all sales are n/45, determine for each year (1) the accounts receivable turnover and (2) the number of days’ sales in receivables.

(b)

Comment on any significant trends revealed by the data.

 

 

 

175. From the following data, determine for the current year the (a) rate earned on total assets, (b) rate earned on stockholders’ equity, (c) rate earned on common stockholders’ equity, (d) earnings per share on common stock, (e) price-earnings ratio on common stock, and (f) dividend yield on common stock. Assume that the current market price per share of common stock is $27. (Present key figures used in your computations.) 

 

Current

Preceding

 

Year

Year

Current assets

$   735,000 

$   820,000 

Property, plant, and equipment

1,500,000 

1,400,000 

Current liabilities

 

 

  (non-interest-bearing)

150,000 

140,000 

Long-term liabilities, 12%

400,000 

400,000 

Preferred 10% stock

250,000 

250,000 

Common stock, $25 par

1,200,000 

1,200,000 

Retained earnings:

 

 

  Beginning of year

230,000 

160,000 

  Net income for year

85,000 

155,000 

  Preferred dividends declared

(25,000)

(25,000)

  Common dividends declared

(60,000)

(60,000)

 

 

 

 

176. The following information has been condensed from the December 31 balance sheets of Henry Co.: 

 

2006

2005

Assets:

 

 

  Current assets

$   825,500

$   674,300

  Fixed assets (net)

  1,473,600

  1,275,300

Total assets

$2,299,100

$1,949,600

 

 

 

Liabilities:

 

 

  Current liabilities

$   313,500

$   309,600

  Long-term liabilities

     703,000

     545,000

Total liabilities

$1,016,500

$   854,600

Stockholders’ equity

$1,282,600

$1,095,000

Total liabilities and

 

 

  stockholders’ equity

$2,299,100

$1,949,600

 

 

 

 

(a)

Determine the ratio of fixed assets to long-term liabilities for 2006 and 2005.

(b)

Determine the ratio of liabilities to stockholders’ equity for 2006 and 2005.

(c)

Comment on the year-to-year changes for both ratios.

 

 

 

177. A company reports the following: 

Net income

$125,000

Preferred dividends

$5,000

Average stockholders’ equity

$1,000,000

Average common stockholders’ equity

$700,000

 

 

Determine the (a) rate earned on stockholders’ equity, and (b) rate earned on common stockholders’ equity? Round your answer to one digit after the decimal place. 

178. Selected data from the Conner Company are presented below:

 

Total assets

$1,500,000

 

Average assets

1,700,000

 

Net income

250,000

 

Net sales

1,400,000

 

Average common stockholders’ equity

1,000,000

 

Net cash provided by operating activities

275,000

 

Shares of common stock outstanding

10,000

 

 

 

InstructionsCalculate the profitability ratios that can be computed from the above information. 

 

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