Ratios from Comparative and Common-Size Data 14f

Ratios from Comparative and Common-Size Data Consider the following financial statements for Vega Company. During the year, management obtained additional bond financing to enlarge its production facilities. The plant addition produced a new high-margin product, which is supposed to improve the average rate of gross profit and return on sales. As a potential investor, you decide to analyze the financial statements: VEGA COMPANY Balance Sheets (Thousands of Dollars) Dec. 31, 2013 Dec. 31, 2012 Assets Cash $16,100 $21,000 39,000 Accounts receivable (net) 21,400 105,000 72,000 Inventory 3,000 Prepaid expenses 1,500 427,500 463,500 Plant and other assets (net) $630,000 $540,000 Total Assets Liabilities and Stockholders' Equity Current liabilities $77,000 $46,000 9% Bonds payable 188,500 151,000 61,000 8% Preferred stock, $50 Par Value 61,000 226,000 226,000 Common stock, $10 Par Value 82,500 61,000 Retained earnings $630,000 $540,000 Total Liabilities and Stockholders' Equity