Compute the missing amounts, and complete the statements of the Blauvelt Company

(Hint: Complete the Income Statement first)

BLAUVELT COMPANY

BALANCE SHEET

AS OF DECEMBER 31, 2018

Cash? Current Liabilities?

Accounts Receivable (Net) ? 7.32% Long-Term Bonds Payable 3,300,000

Inventory? Common Stock 2,692,773

PPE (Net) ? Retained Earnings ?

Total Assets 9,905,856 Total Liabilities and Stockholders' Equity 9,905,856

BLAUVELT COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2018

Net Sales?

Cost of Goods Sold?

Gross Profit?

SGA Expenses?

Income from Operations 1,339,684

Interest Expense on Bonds Payable?

Income before Income Taxes?

Income Tax Expense?

Net Income 788,453

The following information is available about Blauvelt's Company's financial statements:

1. The Accounts Receivable Collection Period (DRO) in 43.28 Days

2. The Days Inventory Outstanding (DIO) is 47.76 Days

3. The Current Ratio for the firm is 3.26

4. The Net Profit Margin for the firm is 9.87%

5. The Gross Profit Margin for the firm is 36.7%

6. The Operating Profit for the Firm is 16.77%

7. The Return on Common Equity for the firm is 13.38%

8. The Income Tax Rate for the firm is 28.2%

2) Compute the following information on the Blauvelt Company

A) Calculate the Quick Ratio of the firm

B) Calculate whether the firm is successfully trading on the equity

C) Calculate the Financial Leverage Index

D) Calculate the Interest Coverage

Answer rating: 100% (QA)

A Quick Ratio Cash Marketable Securities Accounts ReceivableCurrent Liabilities To calculate the Quick Ratio of the Blauvelt Company we need to calculate the value of Cash Accounts Receivable and Mark... View the full answer