104. Brigman Inc. has the following financial statement information for 2012 and 2011:
Balance Sheet Information:
2012
2011
Assets:
Cash
$ 10,250
$ 51,210
Accounts receivable
7,500
8,325
Inventory
1,750
1,665
Total current assets
$ 19,500
$ 61,200
Property and Equipment (net)
60,000
45,000
Total assets
$ 79,500
$106,200
Liabilities:
Accounts payable
$ 4,500
$ 1,500
Salaries payable
1,500
500
Total current liabilities
$ 6,000
$ 2,000
Notes payable
12,500
18,000
Total liabilities
$ 18,500
$ 20,000
Stockholders’ Equity:
Common stock
$ 40,000
$ 40,000
Retained earnings
21,000
46,200
Total stockholders’ equity
$ 61,000
$ 86,000
Total liabilities and stockholders’ equity
$ 79,500
$106,200
Income Statement Information:
Net sales
$ 50,000
$ 55,500
Cost of goods sold
17,500
16,650
Gross profit
$ 32,500
$ 38,850
Selling and administrative expenses
5,000
5,550
Interest expense
1,250
1,800
Income before income taxes
$ 26,250
$ 31,500
Income tax expense
5,250
6,300
Net income
$ 21,000
$ 25,200
Other Information:
Number of common shares outstanding
4,000
4,000
Dividends paid
$ 0
$ 0
Market price per share (12/31)
$40
$30
Income tax rate
20%
20%
Required: Compute the following ratios for the year ending December 31, 2012: (round to two decimal places)
A.
Current ratio
B.
Quick (or acid-test) ratio
C.
Accounts receivable turnover
D.
Debt-to-equity ratio
E.
Times interest earned ratio
105. Brigman Inc. has the following financial statement information for 2012 and 2011:
Balance Sheet Information:
2012
2011
Assets:
Cash
$ 10,250
$ 51,210
Accounts receivable
7,500
8,325
Inventory
1,750
1,665
Total current assets
$ 19,500
$ 61,200
Property and Equipment (net)
60,000
45,000
Total assets
$ 79,500
$106,200
Liabilities:
Accounts payable
$ 4,500
$ 1,500
Salaries payable
1,500
500
Total current liabilities
$ 6,000
$ 2,000
Notes payable
12,500
18,000
Total liabilities
$ 18,500
$ 20,000
Stockholders’ Equity:
Common stock
$ 40,000
$ 40,000
Retained earnings
21,000
46,200
Total stockholders’ equity
$ 61,000
$ 86,000
Total liabilities and stockholders’ equity
$ 79,500
$106,200
Income Statement Information:
Net sales
$ 50,000
$ 55,500
Cost of goods sold
17,500
16,650
Gross profit
$ 32,500
$ 38,850
Selling and administrative expenses
5,000
5,550
Interest expense
1,250
1,800
Income before income taxes
$ 26,250
$ 31,500
Income tax expense
5,250
6,300
Net income
$ 21,000
$ 25,200
Other Information:
Number of common shares outstanding
4,000
4,000
Dividends paid
$ 0
$ 0
Market price per share (12/31)
$40
$30
Income tax rate
20%
20%
Required: Compute the following ratios for the year ending December 31, 2012: (round to two decimal places)
A.
Inventory turnover
B.
Return on assets (ROA) ratio
C.
Asset turnover ratio
D.
Earnings per share (EPS)
E.
Price earnings (P/E) ratio
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