Question: The following are financial statements of Ohara Company. Additional information: The weighted-average common shares outstanding during the year was 50,000. Instructions a. Compute the following

The following are financial statements of Ohara Company.

Ohara Company Income Statement For the Year Ended December 31, 2025 Net

sales Cost of goods sold Selling and administrative expenses Interest expense Income

Additional information: The weighted-average common shares outstanding during the year was 50,000.

Instructions

a. Compute the following values and ratios for 2025. (We provide the results from 2024 for comparative purposes.)

(i) Working capital. (2024: $160,500)

(ii) Current ratio. (2024: 1.65:1)

(iii) Debt to assets ratio. (2024: 31%)

(iv) Earnings per share. (2024: $3.15)

b. Using your calculations from part (a), discuss changes from 2024 in liquidity, solvency, and profitability.

Ohara Company Income Statement For the Year Ended December 31, 2025 Net sales Cost of goods sold Selling and administrative expenses Interest expense Income tax expense Net income $2,218,500 1,012,400 906,000 78,000 69,000 $ 153,100

Step by Step Solution

★★★★★

3.34 Rating (148 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a i Working capital 458900 195500 263400 ii Current ratio 458... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Financial Accounting Tools For Business Questions!

The financial statements of Johanssen Inc. are presented here: Additional information: 1. Profit available to common shareholders was $160,000. 2. The weighted average number of common shares was...

The financial statements of Fast Corporation are presented here: Additional information: 1. Profit available to common shareholders was $96,600. 2. The weighted average number of common shares was...

Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its...

The following are financial statements of Crane Company. Additional information: The weighted-average common shares outstanding during the year was 50,000 . (a) Compute the following values and...

The following are financial statements of Pharoah Company. Additional information: The weighted-average common shares outstanding during the year was 50,000 . (a) Compute the following values and...

The following are financial statements of Blossom Company. Additional information: The weighted-average common shares outstanding during the year was 50.000. (a) Compute the following values and...

The following are financial statements of Cullumber Company. Additional information: The weighted-average common shares outstanding during the year was 50,000. (a) Compute the following values and...

Additional information: The weighted-average common shares outstanding during the year was 50,000 . (a) Compute the following values and ratios for 2025 . (We provide the results from 2024 for...

Additional information: The weighted-average common shares outstanding during the year was 50,000 . (a) Compute the following values and ratios for 2025. (We provide the results from 2024 for...

Please fill in the blank Additional information: The weighted-average common shares outstanding during the year was 50,000. (a) Compute the following values and ratios for 2025 . (We provide the...

1. The private cost of production includes the amount a firm pays for _______, _______, and_______. 2. The external cost of production is the cost incurred by _______. 3. The social cost of...

A new bottle-capping machine costs 46,000, including 5,000 for installation. The machine is expected to have a useful life of eight years with no salvage value at that time (assume straight-line...

6 James agrees to pay 2m for a controlling interest in Sapphire plc providing the company transfers 3m deposited with its present bankers to Emerald Bank from which James has arranged to borrow 2m....

Q 11.11. What kind of rates of return does a strategy of trading stocks once a day have to offer in order for you to earn a positive rate of return? Assume typical real-world trading transaction...

The trial balance of Save-Mart Wholesale Company contained the accounts shown at December 31, the end of the company's fiscal year. Adjustment data: 1. Depreciation is $12,000 on buildings and $9,000...

At the end of Kane Department Stores fiscal year on November 30, 2010, these accounts appeared in its adjusted trial balance. Freight-in .................. $ 5,060 Merchandise Inventory (beginning)...

Pierson Inc. operates a retail operation that purchases and sells snowmobiles, amongst other outdoor products. The company purchases all merchandise inventory on credit and uses a perpetual inventory...

how can we build systems of care that are more responsive to end of life care, how can we help people"age in place" remain members of their community within familiar settings for as long as possible

An investor is forming a portfolio by investing $50,000 in stock A that has a beta of 0.5, and $25,000 in stock B that has a beta of 0.90. What is the beta of the combined portfolio?

As k decreases in the k - Nearest Neighbor algorithm, the model becomes simpler and suffers from underfitting.