Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter.

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable................................. . $ 90,000
Notes payable .......................................... 70,000
Accrued taxes ...... ........ ........ . .. .. . ........10,000
Total current liabilities ..... . ..... . . . . . .. . .170,000
Long-term liabilities:
Bonds payable.........................................150,000
Total liabilities...........................................320,000
Shareholders' equity ... . . .. .. .. ........ . .. .. . .
Preferred stock ..... . . .. .. .. . ..... . . . . . . .100,000
Common stock..........................................270,000
Retained earnings ... ........ .. . ..................210,000
Total shareholders' equity ... ........ . ..........580,000
Total liabilities and shareholders' equity...$900,000

SNIDER CORPORATION
Income Statement
Year ending December 31,2015

Sales (on credit) ............................................$ 1,980,000
Cost of goods sold ............................................1,280,000
Gross profit............................................................700,000
Sel ling and administrative expenses* ..................475,000
Operating profit (EBIT) . ........ ......... . ...................225,000
Interest expense .... ........ .. . ...................................25,000
Earnings before taxes (EBT)..................................200,000
Taxes. . .... ........ ......... .. .. . ....................................80,000
Earnings after taxes (EAT) ... . .. . ..... . . .. . .. . ...$ 120,000.

Transcribed Image Text:

SNIDER CORPORATION Balance Sheet December 31, 2015 Assets Current assets: $ 50,000 Cash ... Marketable securities..... 20,000 Accounts receivable (net) . 160,000 Inventory..... 200,000 430,000 Total current assets 60,000 Investments ... Plant and equipment 600,000 Accumulated amortization... Net plant and equipment. . 190,000 410,000 $900,000 Total assets.