You are interested in investing in Apples and Nuts Company, and you have obtained the following balance
Question:
You are interested in investing in Apples and Nuts Company, and you have obtained the following balance sheets for the company for the past two years:
Net income for the year ended December 31, 2012, was $ 100,000.
Requirements
1. Compute as many of the financial statement ratios you have studied as possible with the information from Apples and Nuts Company. (Compute 2012 ratios.)
2. Would you invest in this company? Why or why not? What additional information would be helpful in making this decision?
Transcribed Image Text:
Apples and Nuts Company Balance Sheets December 31, 2012 December 31, 2011 Current assets: Accounts recelvable, net...310,000 Prepaid rent Equipment, net . 190,000 90,000 216,000 170,000 6,000 482,000 $223,000 217,000 440,000 190,000 Common stockholders equity 250,000
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1 Current ratio 2012 Current assets 693000 336 Current liabilities 206000 Debt to equity ratio Total ...View the full answer
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Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
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