Question:
The comparative financial statements of Chattah Inc. are as follows. The market price of Chattah Inc. common stock was $25 on December 31, 2012.
Instructions
Determine the following measures for 2012, rounding to one decimal place:
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables
6. Inventory turnover
7. Number of days' sales in inventory
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges earned
11. Number of times preferred dividends earned
12. Ratio of net sales to assets
13. Rate earned on total assets
14. Rate earned on stockholders' equity
15. Rate earned on common stockholders' equity
16. Earnings per share on common stock
17. Price-earnings ratio
18. Dividends per share of common stock
19. Dividendyield
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Transcribed Image Text:
Chattah Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2011 2012 Add net income for year... Total Deduct dividends: 1,646,120 976,120 850,000 .. $2,493,120 $1,826,120 847,000 30,000 $ 30,000 150,000 180,000 180 000 3,120 $1,646,120 On common stock 150,000 Total Retained earnings, December 31 $2,313 Chattah Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 Sales (all on account) Sales returns and allowances... ,056,000 $7840,000 40,000 $7,800,000 3,680,000 .$4500000 $4120,000 $1,840,000 1216,000 $3,056,000 1,064,000 96,000 56,000 ....$9,000,000 4,500,000 sa Cost of goods sold. Gross profit 1,936,000 1,296,000 .53,232,000 1,268,000 128,000 1,396,000 309,000 Total operating expenses. Income from operations Other income Other expense (interest) Income before income tax Income tax expense Net income 110,000 $1,050,000 200,000 850,000 240,000 847,000 Chattah Inc. Comparative Balance Sheet December 31, 2012 and 2011 Dec. 31, 2012 Dec. 31, 2011 Assets Current assets: Cash $ 420,000 306,000 Accounts receivabl(net).... Inventories 482,120 850,000 89,250 1,072,700 92,400 .3,008,100 825,000 6,450,020 510,283,120 Total current assets. Long-term investments 637,500 5,100000 $7,872,870 Total assets Llabliities Current liabilities 726,750 Long-term labilities: Mortgage note payable, 12%, due 2017 Bonds payable, 1 1%, due 2021 $ 1,200,000 1,500,000 2,700,000 3,470,000 0 1,000,000 $1,000,000 $1726,750 Total long-term liabilities.. Total liabilities Stockholders Equlty Preferred $2.00 stock, $100 par.. . Retained earnings Total liabilities and stockholders equity......... .. 1,500,000 $1,500,000 3,000,000 1,646,120 $6,146,120 $7,872,870 3,000,000 2,313,120 10,283,120