Question: i need help on number 2 and 3 please! L(25 pts) Using the Balance Sheet from above, conduct a horizontal analysis to determine the changes

L(25 pts) Using the Balance Sheet from above, conduct a horizontal analysis to determine the changes in balance sheet accounts for the years shown. 3. (25pts) Compute the following analytical measures for the current year assuming the current market value of common stock is $20 per share: Solvency Measures: Current Ratio Quick Ratio Profitability Measures: Earnings per share of common stock Dividends per share of common stock Dividend Yield \begin{tabular}{|c|c|c|} \hline & Current Year & Prior Year \\ \hline Cash & $65,000 & $54,000 \\ \hline Accounts Receivable (net) & 78,000 & 85,000 \\ \hline Inventories & 106,500 & 90,000 \\ \hline Land & - & 20,000 \\ \hline Equipment & 495,000 & 370,000 \\ \hline Accumulated Depreciation & (215,000) & (158,000) \\ \hline & $529,500 & $461,000 \\ \hline Accounts Payable (merchandise creditors) & $53,500 & $55,000 \\ \hline Common Stock, $10 par & 200,000 & 170,000 \\ \hline Paid-In Capital in Excess of Par-Common Stock & 62,000 & 60,000 \\ \hline Retained Earnings & 214,000 & 176,000 \\ \hline & $529,500 & $461,000 \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
