The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) SHERIDAN COMPANY Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 500 430 Inventory 590 520 Prepaid expenses 120 160 Total current assets 1,540 1,470 Investments 40 40 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,530 $2,400 Current liabilities $930 $820 Long-term liabilities 540 510 Stockholders' equity-common 1,060 1,070 Total liabilities and stockholders' equity $2,530 $2,400 SHERIDAN COMPANY Income Statements For the Year Ended December 31 2022 2021 $3,930 $3,590 Sales revenue Costs and expenses Cost of goods sold 985 920 Selling & administrative expenses 2,400 2,330 Interest expense 25 20 Total costs and expenses 3,410 3,270 Income before income taxes 520 320 Income tax expense 156 96 Net income $ 364 $ 224 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/20, was $390.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/20, were $2,420.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $990.) (f) Debt to assets ratio. (g) Times interest earned. 2022 2021 Current ratio. :1 :1 Inventory turnover. Profit margin. % Return on assets. % % Return on common stockholders' equity. Debt to assets ratio. % Times interest earned. times times The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) SHERIDAN COMPANY Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 500 430 Inventory 590 520 Prepaid expenses 120 160 Total current assets 1,540 1,470 Investments 40 40 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,530 $2,400 Current liabilities $930 $820 Long-term liabilities 540 510 Stockholders' equity-common 1,060 1,070 Total liabilities and stockholders' equity $2,530 $2,400 SHERIDAN COMPANY Income Statements For the Year Ended December 31 2022 2021 $3,930 $3,590 Sales revenue Costs and expenses Cost of goods sold 985 920 Selling & administrative expenses 2,400 2,330 Interest expense 25 20 Total costs and expenses 3,410 3,270 Income before income taxes 520 320 Income tax expense 156 96 Net income $ 364 $ 224 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/20, was $390.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/20, were $2,420.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $990.) (f) Debt to assets ratio. (g) Times interest earned. 2022 2021 Current ratio. :1 :1 Inventory turnover. Profit margin. % Return on assets. % % Return on common stockholders' equity. Debt to assets ratio. % Times interest earned. times times
Expert Answer:
Answer rating: 100% (QA)
ANSWER Amount in 2021 2022 a Curren Ratio Currn AssetS 1520 1450 810 920 165 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The condensed financial statements of Murawski Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) Compute the following ratios for 2022 and 2021. a. Current ratio....
-
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) Compute the following ratios for 2020 and 2019. a. Current ratio....
-
The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below. Compute the following ratios for 2020 and 2019. a. Current ratio. b. Inventory turnover. (Inventory...
-
A Xerox machine in a shop is operated by a person who does other jobs too. The average service time for a job is 6 minutes per customer. On an average, in every 12 minutes one customer arrives for...
-
What is the purpose of a limit check?
-
If a disk controller writes the bytes it receives from the disk to memory as fast as it receives them, with no internal buffering, is interleaving conceivably useful? Discuss your answer.
-
Determine which of the following transactions represent contingent liabilities for June Leasing and indicate the proper accounting treatment at the company's fiscal year-end, by placing the letter of...
-
The following information is extracted from the bank statement and the accounting records of the Sun Corporation for the month of July 2007: 1. Cash balance from books, July 31 .......... $1,967.35...
-
As consumers demand greater food variety, retailers are under increasing pressure to provide their customers with a greater choice of fresh produce, including fruits, vegetables, fish, and fresh...
-
BGV the maker of industrial liquidating agent is preparing the budget for 2023. The sales department has indicated the annual sales of 32,000 units and the selling price to be set at RM100 per unit....
-
Real Fruit Snack Strips are made from a mixture of dried fruit, food coloring, preservatives, and glucose. The mixture is pressed out into a thin sheet, imprinted with various shapes, rolled and...
-
Find the location of the local minimum and local maximum of the function f(x) = x x- -3 The local minimum is located at x = The local maximum is located at x = Check
-
Q5]..[10 points] Find 5sin(x) + x dr
-
You bought a new car with financing of $50,000 (i.e., you borrowed $50,000). They allow you to pay back in monthly installments of $1,528 for three years. What is the effective annual rate (EAR) that...
-
Math 30 Assignment 3-3 Exponential Functions 1. State the x and y-intercepts for the graphs of the following: a) f(x)=3x b) f(x) = (3)10x c) f(x) = 310x I
-
If lim f (x)= 2-2 +2 3 and lim g(x) = 8, evaluate: lim f(x)9(x)+2 x-2 2f(x)+1-9(2)
-
What happens when we assign a long value to an int value? (p. 433) What parts of a function are affected by type coercion? (p. 433)
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
The following costs relate to a variety of different decision situations. Instructions For each cost listed above, indicate if it is relevant or not to the related decision. For those costs...
-
The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C. Instructions a. Based on the information...
-
An adjustment may affect more than one balance sheet or income statement account. Do you agree? Why or why not?
-
A dishonest politician has four candidates for four patronage jobs. Each candidate has agreed to bribe the politician to obtain each job, by amounts shown in the matrix below (units of thousands of...
-
Show that the label changing algorithm must produce an equality subgraph that has a complete matching, by arguing as follows: (a) Upon changing labeling, since by claim (5) there is a new edge from...
-
A company is planning to locate five branches in five states. After studying various factors related to the local economies and tax laws of the states, the company has managed to quantify how...
Study smarter with the SolutionInn App