Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities. Note payable, 10% Total liabilities Lydex Company Comparative Balance Sheet Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold. Gross margin Selling and administrative expenses. Net operating income This Year Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings $ 980,000 0 2,780,000 3,620,000 260,000 7,640,000 9,560,000 Lydex Company Comparative Income Statement and Reconciliation This Year $ 4,030,000 3,680,000 7,710,000 5,800,000 9,070,000 $ 17,200,000 $ 14,870,000 7,500,000 1,990,000 9,490,000 $ 17,200,000 $ 15,880,000 12,704,000 3,176,000 1,208,000 1,968,000 368,000 1,600,000 480,000 Last Year 1,120,000 400,000 720,000 1,270,000 $ 1,990,000 $ 1,220,000 300,000 1,880,000 2,200,000 200,000 $ 3,020,000 3,080,000 6,100,000 7,500,000 1,270,000 8,770,000 $ 14,870,000 Last Year $ 13,780,000 10,335,000 3,445,000 1,612,000 1,833,000 308,000 1,525,000 457,500 1,067,500 533,750 533,750 736,250 $ 1,270,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio. 2.4 1.1 a. Working capital b. The current ratio c. The acid-test ratio d. The average collection period e. The average sale period f. The operating cycle g. The total asset turnover 32 days 60 days 9.5% 0.7 5.8 10 3. You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute: a. Working capital. b. The current ratio. (Round your final answers to 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,690,000.) (Use 365 days in a year. your intermediate calculations and final answers to 2 decimal place.) Rou e. The average sale period. (The inventory at the beginning of last year totaled $2,050,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover. (The total assets at the beginning of last year totaled $13,090,000.) (Round your final answers to 2 decimal places.) This Year days days days Last Year days days days Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities. Note payable, 10% Total liabilities Lydex Company Comparative Balance Sheet Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold. Gross margin Selling and administrative expenses. Net operating income This Year Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings $ 980,000 0 2,780,000 3,620,000 260,000 7,640,000 9,560,000 Lydex Company Comparative Income Statement and Reconciliation This Year $ 4,030,000 3,680,000 7,710,000 5,800,000 9,070,000 $ 17,200,000 $ 14,870,000 7,500,000 1,990,000 9,490,000 $ 17,200,000 $ 15,880,000 12,704,000 3,176,000 1,208,000 1,968,000 368,000 1,600,000 480,000 Last Year 1,120,000 400,000 720,000 1,270,000 $ 1,990,000 $ 1,220,000 300,000 1,880,000 2,200,000 200,000 $ 3,020,000 3,080,000 6,100,000 7,500,000 1,270,000 8,770,000 $ 14,870,000 Last Year $ 13,780,000 10,335,000 3,445,000 1,612,000 1,833,000 308,000 1,525,000 457,500 1,067,500 533,750 533,750 736,250 $ 1,270,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio. 2.4 1.1 a. Working capital b. The current ratio c. The acid-test ratio d. The average collection period e. The average sale period f. The operating cycle g. The total asset turnover 32 days 60 days 9.5% 0.7 5.8 10 3. You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute: a. Working capital. b. The current ratio. (Round your final answers to 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,690,000.) (Use 365 days in a year. your intermediate calculations and final answers to 2 decimal place.) Rou e. The average sale period. (The inventory at the beginning of last year totaled $2,050,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover. (The total assets at the beginning of last year totaled $13,090,000.) (Round your final answers to 2 decimal places.) This Year days days days Last Year days days days
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total...
-
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total...
-
Comparative financial statements for the Rahul Corporation for the year ended December 31 are given below. A total of 500,000 shares of stock were outstanding. The market value of the companys stock...
-
Consider a situation where the marginal damage function is known and equal to D'(E)= d.E. The aggregate marginal abatement cost curve is given by -C'(E)=-bE where is random variable uniformly...
-
Which one of the following budgets do manufacturing firms and service firms have in common? a. Direct labor budget b. Supplies budget c. Production budget d. Sales budget e. Direct materials budget
-
In recent times, the percent of buyers purchasing a new vehicle via the Internet has been large enough that local automobile dealers are concerned about its impact on their business. The information...
-
Imagine a hospital information system that comprises four application systems: a PAS, an MDMS, a RIS, and a PDMS. The hospital is now considering the introduction of a communication server to improve...
-
On March 1, 2012, Mitch Quade established Marine Realty, which completed the following transactions during the month: a. Mitch Quade transferred cash from a personal bank account to as account to be...
-
Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 129,000 Cost $ 118,100 $...
-
Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alices birthday is September 21, 1974, and...
-
Discussion questions: With reference to the reading explain what Wolf means by a sane deep self. Do you think that Jojo is morally responsible (viz., deserving of praise and blame for his actions)?...
-
What is the continuum assumption, and what does it imply?
-
What are the possible outcomes when a single woman or a lesbian couple uses a known donor?
-
A basic law of nature is proven only empirically. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the statement to make it true.
-
If a woman who is not married becomes pregnant, do you think she and the father should have equal rights with respect to the child? Is your thinking influenced by the circumstances? For example, does...
-
The principle of work and energy is derived from Newton's second law integrated over time. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the...
-
Job cost sheets for incomplete jobs in Work in Process on February 1 showed the following: Job #36 Job #37 Direct materials $ 480 $ 390 Direct labour 560 340 Manufacturing overhead 840 510 Total...
-
Find the equation of the plane passing through the points P 5,4,3 ,Q 4,3,1 and R 1,5,4
-
Refer to the information pertaining to Endless Mountain Company that is provided in Integration Exercise 16. In addition to the budget schedules that you prepared in Integration Exercise 16, insert...
-
Refer to the information pertaining to Endless Mountain Company that is provided in Integration Exercise 16. In addition to the budget schedules that you prepared in Integration Exercise 16, insert a...
-
What is the meaning of operating leverage?
-
A diesel engine of mass \(300 \mathrm{~kg}\) and operating speed \(1800 \mathrm{rpm}\) is found to have a rotating unbalance of \(1 \mathrm{~kg}-\mathrm{m}\). It is to be installed on the floor of an...
-
A sensitive electronic system, of mass \(30 \mathrm{~kg}\), is supported by a spring-damper system on the floor of a building that is subject to a harmonic motion in the frequency range \(10...
-
A machine of mass \(1150 \mathrm{~kg}\) is mounted on springs. A piston of mass \(m=25 \mathrm{~kg}\) moves up and down in the machine at a speed of \(600 \mathrm{rpm}\) with a stroke of \(350...
Study smarter with the SolutionInn App