Use the following information from the current year financial statements of a company to calculate the...
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Use the following information from the current year financial statements of a company to calculate the ratios below: (a) Current ratio. Current assets/ current liabilities (b) Accounts receivable turnover. Sales/ Average Accounts receivable (Assume the prior year's accounts receivable balance was $100,000.) (e) Days' sales uncollected. 365 Days / accounts receivable turnover (d) Inventory turnover. Cost of goods sold / average inventory (Assume the prior year's inventory was $50,200.) (e) Days inventory on hand. 365 Days/inventory turnover (f) Return on common stockholders' equity. Net income / Total Stockholder's Equity (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.) (g) Earnings per share (48,000 shares issued and outstanding) (net Income / shares outstanding) (assuming the corporation has a simple capital structure, with only common stock outstanding). (h) Price earnings ratio. Price of the stock / earnings per share (Assume the company's stock is selling for $26 per share.) (i) Divided yield ratio. Dividends paid / Price of stock (Assume that the company paid $1.25 per share in cash dividends.) Income statement data: Sales (all on credit).. Cost of goods sold... Gross profit on sales. Operating expenses.. Operating income.... Interest expense... Income before taxes. Income taxes. Net income... Balance sheet data: Cash Accounts receivable Inventory Prepaid Expenses Total current assets Total plant assets Total assets Accounts payable Interest payable Long-term liabilities Total liabilities Common stock, $10 par Retained earnings Total liabilities and equity $1,075,000 $75,000 $ 500,000 305.000 $ 195,000 20,400 $ 174,600 74.000 $100,600 $ 38,400 120,000 56,700 24.000 $239.100 708.900 $948,000 $ 91,200 4,800 204.000 $300,000 480,000 168,000 $948.000 Use the following information from the current year financial statements of a company to calculate the ratios below: (a) Current ratio. Current assets/ current liabilities (b) Accounts receivable turnover. Sales/ Average Accounts receivable (Assume the prior year's accounts receivable balance was $100,000.) (e) Days' sales uncollected. 365 Days / accounts receivable turnover (d) Inventory turnover. Cost of goods sold / average inventory (Assume the prior year's inventory was $50,200.) (e) Days inventory on hand. 365 Days/inventory turnover (f) Return on common stockholders' equity. Net income / Total Stockholder's Equity (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.) (g) Earnings per share (48,000 shares issued and outstanding) (net Income / shares outstanding) (assuming the corporation has a simple capital structure, with only common stock outstanding). (h) Price earnings ratio. Price of the stock / earnings per share (Assume the company's stock is selling for $26 per share.) (i) Divided yield ratio. Dividends paid / Price of stock (Assume that the company paid $1.25 per share in cash dividends.) Income statement data: Sales (all on credit).. Cost of goods sold... Gross profit on sales. Operating expenses.. Operating income.... Interest expense... Income before taxes. Income taxes. Net income... Balance sheet data: Cash Accounts receivable Inventory Prepaid Expenses Total current assets Total plant assets Total assets Accounts payable Interest payable Long-term liabilities Total liabilities Common stock, $10 par Retained earnings Total liabilities and equity $1,075,000 $75,000 $ 500,000 305.000 $ 195,000 20,400 $ 174,600 74.000 $100,600 $ 38,400 120,000 56,700 24.000 $239.100 708.900 $948,000 $ 91,200 4,800 204.000 $300,000 480,000 168,000 $948.000
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Related Book For
Financial Accounting
ISBN: 978-1259222139
9th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
Posted Date:
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