The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) SHERIDAN COMPANY Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 500 430 Inventory 590 520 Prepaid expenses 120 160 Total current assets 1,540 1,470 Investments 40 40 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,530 $2,400 Current liabilities $930 $820 Long-term liabilities 540 510 Stockholders' equity-common 1,060 1,070 Total liabilities and stockholders' equity $2,530 $2,400 SHERIDAN COMPANY Income Statements For the Year Ended December 31 2022 2021 $3,930 $3,590 Sales revenue Costs and expenses Cost of goods sold 985 920 Selling & administrative expenses 2,400 2,330 Interest expense 25 20 Total costs and expenses 3,410 3,270 Income before income taxes 520 320 Income tax expense 156 96 Net income $ 364 $ 224 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/20, was $390.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/20, were $2,420.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $990.) (f) Debt to assets ratio. (g) Times interest earned. 2022 2021 Current ratio. :1 :1 Inventory turnover. Profit margin. % Return on assets. % % Return on common stockholders' equity. Debt to assets ratio. % Times interest earned. times times The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) SHERIDAN COMPANY Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 500 430 Inventory 590 520 Prepaid expenses 120 160 Total current assets 1,540 1,470 Investments 40 40 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,530 $2,400 Current liabilities $930 $820 Long-term liabilities 540 510 Stockholders' equity-common 1,060 1,070 Total liabilities and stockholders' equity $2,530 $2,400 SHERIDAN COMPANY Income Statements For the Year Ended December 31 2022 2021 $3,930 $3,590 Sales revenue Costs and expenses Cost of goods sold 985 920 Selling & administrative expenses 2,400 2,330 Interest expense 25 20 Total costs and expenses 3,410 3,270 Income before income taxes 520 320 Income tax expense 156 96 Net income $ 364 $ 224 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/20, was $390.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/20, were $2,420.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $990.) (f) Debt to assets ratio. (g) Times interest earned. 2022 2021 Current ratio. :1 :1 Inventory turnover. Profit margin. % Return on assets. % % Return on common stockholders' equity. Debt to assets ratio. % Times interest earned. times times
Expert Answer:
Answer rating: 100% (QA)
ANSWER Amount in 2021 2022 a Curren Ratio Currn AssetS 1520 1450 810 920 165 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The condensed financial statements of Murawski Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) Compute the following ratios for 2022 and 2021. a. Current ratio....
-
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) Compute the following ratios for 2020 and 2019. a. Current ratio....
-
The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below. Compute the following ratios for 2020 and 2019. a. Current ratio. b. Inventory turnover. (Inventory...
-
A Xerox machine in a shop is operated by a person who does other jobs too. The average service time for a job is 6 minutes per customer. On an average, in every 12 minutes one customer arrives for...
-
What aspects of the accounting system are relevant to financial reporting objectives?
-
True or False: The following annual cash flows in years 1 thru 7, respectively, have a single real positive-valued root: \(-\$ 100,+\$ 15,-\$ 25,+\$ 75,-\$ 10,+\$ 50\), \(+\$ 50\).
-
To test whether radio signals from deep space contain a message, an interval of time could be subdivided into a number of very short intervals and it could then be determined whether the signal...
-
(This exercise is based on the situation described in E 16?24, modified to include a carryforward in addition to a carryback.)Wynn Farms reported a net operating loss of $160,000 for financial...
-
Some enterprising physics students working on a catapult decide to have a water balloon fight in the school hallway. The ceiling is of height 3 . 4 m, and the balloons are launched at a velocity of 9...
-
W&S Partners has just won the January 31, 2026, audit for Cloud 9. As a part of the risk assessment phase for the new audit, the audit team needs to gain an understanding of Cloud 9's structure and...
-
What organization has the overall authority with the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public?
-
1) Consider the following flip flop which has input W, X and Y. The output is Q and Q. Obtain the flip flop characteristic Table 1.0 during positive edge of the clock pulse. (8 Marks) W X Y D Figure...
-
In what ways does the problem of self-deception resemble the problem of childhood fever back in Semmelweis' day?
-
Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below: Flight Caf Planning Budget For the Month Ended...
-
Southwest CEO Gary Kelly has asked you to advise him on what policies, procedures, and operating practices at Southwest are working particularly well and what changes might be needed to improve...
-
If a 220 V electric lamp, drawing a current of 2.5 A, is used for 50.0 minutes, calculate the amount of energy that it requires. select units
-
A welded plate girder spans 25 ft (300 in.) and supports 310 kips and 420 kips factored loads at 7ft-6in. (90 in.) from the supports. These concentrated loads are acting at a 3 ineccentricity with...
-
One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children. What might this finding imply about the reason the elderly do not dissave...
-
The following costs relate to a variety of different decision situations. Instructions For each cost listed above, indicate if it is relevant or not to the related decision. For those costs...
-
The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C. Instructions a. Based on the information...
-
An adjustment may affect more than one balance sheet or income statement account. Do you agree? Why or why not?
-
Using the data in exercise 2, determine how many units of resources the firm will want to acquire. Data from in exercise 2 Using the information in the following table, calculate the marginal revenue...
-
What does it mean to say that the demand for resources is a derived demand? Is the demand for all goods and services a derived demand?
-
Using the information in the following table, calculate the marginal revenue product (MRP = MPP MR). Unit of Resources Total Resource Output Price Price 1 10 $5 $10 2 25 $5 $10 345 35 $5 $10 40 $5...
Study smarter with the SolutionInn App