Financial statements for Allendale Company follow:

Financial statements for Allendale Company follow:


ALLENDALE COMPANY

Balance Sheets
As of December 31


2019


2018

Assets








Current assets








Cash

$

40,000



$

36,000


Marketable securities


20,000




6,000


Accounts receivable (net)


54,000




46,000


Inventories


135,000




143,000


Prepaid items


25,000




10,000


Total current assets


274,000




241,000


Investments


27,000




20,000


Plant (net)


270,000




255,000


Land


29,000




24,000


Total assets

$

600,000



$

540,000


Liabilities and Stockholders’ Equity








Liabilities








Current liabilities








Notes payable

$

17,000



$

6,000


Accounts payable


113,800




100,000


Salaries payable


21,000




15,000


Total current liabilities


151,800




121,000


Noncurrent liabilities








Bonds payable


100,000




100,000


Other


32,000




27,000


Total noncurrent liabilities


132,000




127,000


Total liabilities


283,800




248,000


Stockholders’ equity








Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued)


80,000




80,000


Common stock (no par; 50,000 shares authorized; 10,000 shares issued)


80,000




80,000


Retained earnings


156,200




132,000


Total stockholders’ equity


316,200




292,000


Total liabilities and stockholders’ equity

$

600,000



$

540,000




ALLENDALE COMPANY

Statements of Income and Retained Earnings
For the Years Ended December 31










2019


2018

Revenues








Sales (net)

$

230,000



$

210,000


Other revenues


8,000




5,000


Total revenues


238,000




215,000


Expenses








Cost of goods sold


120,000




103,000


Selling, general, and administrative


55,000




50,000


Interest expense


8,000




7,200


Income tax expense


23,000




22,000


Total expenses


206,000




182,200


Net earnings (net income)


32,000




32,800


Retained earnings, January 1


132,000




107,000


Less: Preferred stock dividends


3,200




3,200


Common stock dividends


4,600




4,600


Retained earnings, December 31

$

156,200



$

132,000




Required:

Calculate the following ratios for 2019 and 2018. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 balance sheet.

Working capital.

Current ratio. (Round your answers to 2 decimal places.)

Quick ratio. (Round your answers to 2 decimal places.)

Receivables turnover (beginning receivables at January 1, 2018, were $47,000). (Round your answers to 2 decimal places.)

Average days to collect accounts receivable. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)

Inventory turnover (beginning inventory at January 1, 2018, was $140,000). (Round your answers to 2 decimal places.)

Number of days to sell inventory. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)

Debt to assets ratio. (Round your answers to the nearest whole percent.)

Debt to equity ratio. (Round your answers to 2 decimal places.)

Number of times interest was earned. (Round your answers to 2 decimal places.)

Plant assets to long-term debt. (Round your answers to 2 decimal places.)

Net margin. (Round your answers to 2 decimal places.)

Turnover of assets. (Round your answers to 2 decimal places.)

Return on investment. (Round your answers to 2 decimal places.)

Return on equity. (Round your answers to 2 decimal places.)

Earnings per share. (Round your answers to 2 decimal places.)

Book value per share of common stock. (Round your answers to 2 decimal places.)

Price-earnings ratio (market price per share: 2018, $11.75; 2019, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.)

Dividend yield on common stock. (Round your answers to 2 decimal places.)


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