The following financial statements apply to Walton Company: Revenues Expenses Cost of goods sold Selling expenses...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following financial statements apply to Walton Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets urrent assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets. Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (48,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $ 220,000 $ 125,900 19,900 10,300 1,600 19,800 177,500 42,500 147,100 105,500 20,600 $ 273,200 $ 4,400 $ 2,500 36,500 100,500 3,200 $ 39,700 16,000 55,700 65,300 121,000 Year 1 $ 181,900 113,200 39,000 152,200 $ 273,200 $ 102,800 17,900 9,300 1,600 16,900 148,500 33,400 6,900 2,500 30,800 94,200 2,200 136,600 105,500 0 $ 242,100 $ 34,800 15,000 49,800 66,300 116,100 113,200 12,800 126,000 $ 242,100 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.09 and $4.94, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) The following financial statements apply to Walton Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets urrent assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets. Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (48,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $ 220,000 $ 125,900 19,900 10,300 1,600 19,800 177,500 42,500 147,100 105,500 20,600 $ 273,200 $ 4,400 $ 2,500 36,500 100,500 3,200 $ 39,700 16,000 55,700 65,300 121,000 Year 1 $ 181,900 113,200 39,000 152,200 $ 273,200 $ 102,800 17,900 9,300 1,600 16,900 148,500 33,400 6,900 2,500 30,800 94,200 2,200 136,600 105,500 0 $ 242,100 $ 34,800 15,000 49,800 66,300 116,100 113,200 12,800 126,000 $ 242,100 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.09 and $4.94, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.)
Expert Answer:
Answer rating: 100% (QA)
To calculate the requested financial ratios for Year 1 and Year 2 for Walton Company well use the provided financial statement data well calculate eac... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
Students also viewed these accounting questions
-
Which is not a parasite of the human intestine (a) Ringworm (b) Pinworm (c) Threadworm (d) Tapeworm
-
Momentum [kg-m/s] 1 ? 0.1 0.2 0.3 0.4 0.5 Time [s] Figure 1.21: Momentum as a function of time[1] 22 object is not "in equilibrium," meaning that this time the net force on the object is not zero....
-
2) (1,-4) Graph of f' Let f b a twice-differentiable function defined on the interval -1.2 < x < 3.2 with f(1) = 2. The graph of f'(x), the derivative of f, is shown above. The graph of f' crosses...
-
On December 1, 2011, Lavender Manufacturing Company (a corporation) purchased another company's assets, including a patent. The patent was used in Lavender's manufacturing operations; $49,500 was...
-
In business it is important to plan and carry on research in order to anticipate what will occur at the end of the year. Research suggests that the profit (loss) spectrum is as follows with...
-
Hi-Tech Company sells small labeling machines for $60 each. Expected units, sales, and total costs in the next four quarters are as follows: a. What are fixed costs? Assume that the linear...
-
A rectangular wooden column has the cross section shown. If the column is \(6 \mathrm{ft}\) long and subjected to an axial force of \(P=15\) kip, determine the required minimum dimension \(a\) of its...
-
Wiemers Products Company operates three divisions, each with its own manufacturing plant and marketing/sales force. The corporate headquarters and central accounting office are in Wiemers, and the...
-
Chattanooga Company manufactures widgets. Dalton Company has approached Chattanooga with a proposal to sell the company widgets at a price of $82,000 for 100,000 units. Chattanooga is currently...
-
As discussed in section 5, Erica has added two new inventory items to her E Bike City business. The new bike, Electric Dream 250 Bike will be purchased from Odyssey Cycles and the Glide Electric...
-
MNL Industries is considering an investment in derivatives, stocks, and bonds securities. You were assigned as a financial manager to assess the investments and make an investment decision. After an...
-
How does thread-level parallelism in modern operating systems contribute to improved system performance, and what are the key challenges associated with synchronizing multiple threads within the same...
-
Wheeler s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike...
-
Consider a portfolio position of $10 million on which returns are assumed to be normally distributed and i.i.d. The annual standard deviation of the rate of returns is 25%. (a) trading days per year?...
-
Suppose that you back-test a VaR model using 1,000 daily stock returns for the following (a), (b) and (c). The VaR confidence level is 99% and you observe 16 exceptions. (a) Specify the null...
-
1. What is the force between two balloons with a negative charge of 1.6 X 10 - I C if the balloons are 5.0 cm apart? 2. How much energy is available from a 12 V storage battery that can transfer a...
-
You are working as an assistant to the CHRO (Chief Human Resources Officer) for a small (50 employees) FF&E provider for the hospitality industry. Your company offers full procurement solutions...
-
Find the equations of the ellipses satisfying the given conditions. The center of each is at the origin. Passes through (2, 2) and (1, 4)
-
Distinguish between net income available to the common shareholders and measures such as residual income and economic value added (EVA).
-
Selected data for The Walt Disney Company appear here (in millions): Prepare a graph similar to Exhibit 3.3 that shows net income, net income plus Type 1 adjustments, cash flow from operations, and...
-
Access the web sites of American Airlines (www.aa.com), Intel (www.intel.com) and Disney (www.disney.com) and study the business involvements of each firm. Examine the financial ratios below and...
-
Using the demand and cost curves of an individual firm in oligopoly, demonstrate the effects of each of the following: a. The Clean Air Act b. The Nutrition and Labeling Act c. A ban on smoking...
-
Which of the three types of government policiesantitrust, social regulation, and economic regulationis the basis for each of the following? a. Beautician education standards b. Certified Public...
-
Explain why a market in which broadcast licenses can be purchased might be more efficient than having the FCC assign licenses on some basis designed by the FCC.
Study smarter with the SolutionInn App