The financial statements of Fast Corporation are presented here: Additional information: 1. Profit available to common shareholders
Question:
Additional information:
1. Profit available to common shareholders was $96,600.
2. The weighted average number of common shares was 40,000.
3. The share price at December 31 was $30.
Instructions
(a) Calculate the following values and ratios for 2015. The results for 2014 are provided for comparative purposes.
1. Working capital (2014: $78,000)
2. Current ratio (2014: 1.4:1)
3. Debt to total assets (2014: 51.5%)
4. Earnings per share (2014: $1.35)
5. Price-earnings ratio (2014: 10.8 times)
(b) Using the information in part (a), discuss the changes in liquidity, solvency, and profitability between 2014 and
2015.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine