Question

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

SNIDER CORPORATION
Balance Sheet
December 31, 2013
Assets
Current assets:
Cash $ 52,200
Marketable securities 24,400
Accounts receivable (net) 222,000
Inventory   238,000
Total current assets $536,000
Investments 65,900
Plant and equipment 615,000
Less: Accumulated depreciation (271,000)
Net plant and equipment    344,000
Total assets $946,500


Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $93,400
Notes payable 70,600
Accrued taxes      17,000
Total current liabilities 181,000
Long-term liabilities:
Bonds payable 153,200
Total liabilities $334,200
Stockholders’ equity
Preferred stock, $50 per value 100,000
Common stock, $1 par value 80,000
Capital paid in excess of par 190,000
Retained earnings   242,300
Total stockholders’ equity 612,300
Total liabilities and stockholders’ equity $946,500

SNIDER CORPORATION

Income statement
For the Year Ending December 31, 2013

Sales (on credit)
$2,064,000

Less: Cost of goods sold
 1,313,000

Gross profit
751,000

Less: Selling and administrative expenses
 496,000*

Operating profit (EBIT)
255,000

Less: Interest expense
 26,900

Earnings before taxes (EBT)
228,100

Less: Taxes
 83,300

Earnings after taxes (EAT)
$ 144,800

*Includes $36,100 in lease payments.



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  • CreatedOctober 14, 2014
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