Instructions: Assignment -Ch. 11: P11-10 (Pg. 514-15)

statement about Illian P 1 1-10 The following data apply to items (a) through (g): JOHANSON COMPANY Statement of Financial Position December 31, 2010 and 201 1 2010 2011 (In thousands) Assets Current assets: $ 380 Cash and temporary investments $ 400 1,500 Accounts receivable (net) 1,700 2,120 Inventories 2,200 4,000 Total current assets 4,300 Long-term assets: Land 500 500 Building and equipment (net) 4,000 4,700 Total long-term assets 4,500 5,200 Total assets $8,500 $9,500(P 11-10 CONTINUED) 4. 1.1 times. 5. 0.13 time. e. The inventory turnover in 2011 is 1. 13.6 times. 2. 12.5 times. 3. 0.9 time. nomunoz 7.0 times. 5. 51.4 times. f. The operating income margin in 2011 is 1. 2.7%. 2. 91.7%. 3. 52.5%. 4. 95.8%. 15. 8.3%. g. The dividend payout ratio in 2011 is 1. 100%. 2. 36%. 3. 20%. 4. 8.8%. (5. 33.3%. (CMA Ada(In thousands) CHAPTER 1 1 . Expanded Analysis 515 Liabilities and Equities 2010 2011 Current liabilities: Accounts payable Current portion of long-term debt $ 700 $1,400 Total current liabilities Long-term debt 500 1,000 Total liabilities 1,200 2,400 4,000 3,000 Stockholders' equity: 5,200 5,400 Common stock Retained earnings 3,000 3,000 Total stockholders' equity 300 1,100 Total liabilities and equities 3,300 4,100 $8,500 $9,500 JOHANSON COMPANY Statement of Income and Retained Earnings For the Year Ended December 31, 201 1 (In thousands) Net sales Less: Cost of goods sold $28,800 Selling expenses $15,120 Administrative expenses 7,180 Interest 4,100 Income taxes 400 800 27,600 Net income 1,200 Retained earnings, January 1 300 Subtotal 11-1 9 1,500 Cash dividends declared and paid 400 Retained earnings, December 31 $ 1,100 Required Answer the following multiple-choice questions: a. The acid-test ratio for 2011 is 1. 1.1-to-1. 2. 0.9-to-1. 3. 1.8-to-1. 4. 0.2-to-1. 5. 0.17-to-1. b. The average number of days' sales outstanding in 2011 is 1. 18 days. 2. 360 days. 3. 20 days. 4. 4.4 days. 5. 80 days. c. The times interest earned ratio for 2011 is 1. 3.0 times. 2. 1.0 time. 3. 72.0 times. 4. 2.0 times. 5. 6.0 times. d. The asset turnover in 2011 is 1. 3.2 times. 2. 1.7 times. 3. 0.4 time. (continue