I solved all 1,2,3.

I just need help for Question 4, please!

1) Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet!

Match each computation to one of theliquidityandsolvency

Liquidity and Solvency Measures Computations

Numberofdays'salesinreceivables [($714,000 + $740,000) 2] ($8,280,000 365)

Working capital $3,091,000 - $900,000

Accounts receivable turnover $8,280,000 [($714,000 + $740,000) 2]

Number of days' sales in inventory [($1,072,000 + $1,100,000) 2] ($4,100,000 365)

Current ratio $3,091,000 $900,000

Quick ratio $1,866,000 $900,000

Inventory turnover $4,100,000 [($1,072,000 + $1,100,000) 2]

Times interest earned ($989,400 + $127,000) $127,000

Ratioofliabilitiestostockholders'equity $2,590,000 $4,015,000

Ratiooffixedassetstolong-termliabilities $2,690,000 $1,690,000

2) Use the following balance sheet form to enter amounts you identify from the computations on the Liquidity and Solvency Measures panel. You will identify other amounts for the balance sheet on the Profitability Measures panel. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Compute any missing amounts.

Balance Sheet

December 31, 20Y6

Assets

Current assets:

Cash $823,000

Marketable securities $329000

Accounts receivable (net) $714000

Inventory $1072000

Prepaid expenses $153000

Total current assets $3091000

Long-term investments $824000

Property, plant, and equipment (net) $2690000

Total assets $6605000

Liabilities

Current liabilities $900000

Long-term liabilities $1690000

Total liabilities $2590000

Stockholders' Equity

Preferred stock, $10 par $487500

Common stock, $5 par $1250000

Retained earnings $2277500

Total stockholders' equity $4015000

Total liabilities and stockholders' equity $6605000

3) Match each computation to one of theprofitabilitymeasures in the table.

Profitability Measures Computations

Asset turnover $8,280,000 [($6,605,000 + $6,415,000) 2]

Return on total assets ($801,420 + $127,000) [($6,605,000 + $6,415,000) 2]

Return on stockholders' equity $801,420 [($4,015,000 + $3,814,250) 2]

Returnoncommonstockholders'equity ($801,420 - $65,000) [($3,527,500 + $3,386,400) 2]

Earnings per share on common stock ($801,420 - $65,000) 250,000 shares

Price-earnings ratio $35 $3.05

Dividends per share $175,000 250,000 shares

Dividend yield $0.70 $35

4) Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures panel and on the Profitability Measures panel. Compute any missing amounts and complete thehorizontal analysiscolumns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If < 5, round down and if 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%.

Comparative Income Statement

For the Years Ended December 31, 20Y6 and 20Y5

20Y6 20Y5 Amount Increase(Decrease) Percentage Increase(Decrease)

Sales $8280000 $7287000 $993000 13.6%

Cost of goods sold $4100000 $3444000 $656000 19%

Gross profit $4180000 $3843000 $337000 8.8%

Selling expenses ? $1457600 ? ?

Administrative expenses $1242000 $1106000 $136000 12.3%

Total operating expenses ? $2563600 ? ?

Income from operations ? $1279400 ? ?

Interest expense ? $120600 ? ?

Income before income tax ? $1158800 ? ?

Income tax expense ? $181980 ? ?

Net income ? $976820 ? ?