Question :
190.A corporation reports the following year-end balance sheet data. Calculate : 1258435
190.A corporation reports the following year-end balance sheet data. Calculate the following ratios: (a) working capital (b) acid-test ratio (c) current ratio (d) debt ratio (e) equity ratio (f) debt-to-equity ratio
Cash$50,000Current liabilities$64,000
Accounts receivable35,000Long-term liabilities72,000
Inventory60,000Common stock100,000
Equipment 140,000Retained earnings 49,000
Total assets $285,000 Total liabilities and equity $285,000
191.Selected balances from a company’s financial statements are shown below. Calculate the following ratios for 2016: (a) accounts receivable turnover (b) inventory turnover (c) days’ sales uncollected (d) days’ sales in inventory (e) profit margin. (f) return on total assets.
Dec. 31,2016Dec. 31,2015For theYear 2016
Accounts receivable$27,000$24,000
Merchandise inventory25,00020,000
Total assets296,000244,000
Accounts payable26,00032,000
Salaries payable3,0004,400
Sales (all on credit) $312,000
Cost of goods sold 165,600
Salaries expense 48,000
Other expenses 75,000
Net income 24,000
192.The following selected financial information for a company was reported for the current year end. Calculate the following company ratios: (a) Accounts receivable turnover. (b) Inventory turnover. (c) Days’ sales uncollected
Accounts receivable, beginning-year$170,000
Accounts receivable, year-end190,000
Merchandise inventory, beginning-year80,000
Merchandise inventory, year-end60,000
Cost of goods sold580,000
Credit sales1,000,000
193.Selected current year end financial information for a company is presented below. 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).
Net income$325,000
Net sales4,700,000
Total liabilities, beginning-year550,000
Total liabilities, end-of-year530,000
Total stockholders’ equity, beginning-year760,000
Total stockholders’ equity, end-of-year745,000
194.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 receivable120,000
Inventory56,700
Prepaid Expenses 24,000
Total current assets$239,100
Total plant assets 708,900
Total assets $948,000
Accounts payable$91,200
Interest payable4,800
Long-term liabilities 204,000
Total liabilities$300,000
Common stock, $10 par480,000
Retained earnings 168,000
Total liabilities and equity $948,000
