Question : 178.Financial statements for Cancun Corporation presented below. Cancun Corporation Comparative Balance She : 1244267

 

178.Financial statements for Cancun Corporation are presented below.

 

Cancun 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

 

Cancun 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.

 

Quick ratio

 

Days’ payable

 

Days’ sales uncollected

 

Debt to equity ratio

 

Profit margin

 

Price/earnings (P/E) ratio

 

Return on assets

 

Dividends yield

 

 

 

 

 

 

 

 

 

179.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.

 

Average inventory

$  6,000

Average total assets

80,000

Cost of goods sold

21,000

Income taxes expense

3,600

Interest expense

2,000

Net income

4,800

Net sales

40,000

Market price, December 31, on 2,000 shares

$36/share

 

Return on assets

 

Inventory turnover

 

Price/earnings (P/E) ratio

 

Interest coverage ratio

 

 

 

 

180.Use the following information to calculate the ratios requested below. Round answers to two decimal places. Show your work.

 

Average inventory

$  4,500

Average total assets

50,000

Cost of goods sold

15,750

Income taxes expense

2,700

Interest expense

1,500

Net income

3,200

Net sales

30,000

Market price, December 31, on 2,000 shares

$48/share

 

Return on assets

 

Inventory turnover

 

Price/earnings (P/E) ratio

 

Interest coverage ratio

 

 

 

 

 

 

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