153. Selected balances from a company’s financial statements are shown below:
Dec. 31, 2013
Dec. 31, 2014
For the Year 2014
Merchandise inventory
$ 15,000
$ 20,000
Accounts payable
32,000
26,000
Salaries payable
4,400
3,000
Accounts receivable
24,000
21,000
Total assets
234,000
286,000
Sales (all on credit)
$312,000
Cost of goods sold
165,600
Salaries expense
48,000
Other expenses
75,000
Net income
24,000
Use the information above to calculate the following current year ratios: (a) 2014 inventory turnover.(b) Days’ sales uncollected at Dec. 31, 2014.(c) 2014 profit margin.(d) 2011 return on total assets.
154. The following selected company information was reported:
Accounts receivable, beginning-year
$170,000
Accounts receivable, year-end
190,000
Merchandise inventory, beginning-year
80,000
Merchandise inventory, year-end
60,000
Cost of goods sold
580,000
Credit sales
1,000,000
Calculate the following company ratios: (a) Accounts receivable turnover(b) Inventory turnover(c) Days’ sales uncollected
155. Selected current year company information follows:
Net income
$ 325,000
Net sales
4,700,000
Total liabilities, beginning-year
550,000
Total liabilities, end-of-year
530,000
Total stockholders’ equity, beginning-year
760,000
Total stockholders’ equity, end-of-year
745,000
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).
156. 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 receivable
120,000
Inventory
56,700
Prepaid Expenses
24,000
Total current assets
$239,100
Total plant assets
708,900
Total assets
$948,000
Accounts payable
$ 91,200
Interest payable
4,800
Long-term liabilities
204,000
Total liabilities
$300,000
Common stock, $10 par
480,000
Retained earnings
168,000
Total liabilities and equity
$948,000
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