IN COMPA Balance Sheets Income Statement the Years Ended December 31 20172016 Cu
ID: 2336301 • Letter: I
Question
IN COMPA Balance Sheets Income Statement the Years Ended December 31 20172016 Current assets Cash Short-term investments Accounts receivaible (net) Inventory Net sales (all on account) $600, 500$520,800 · 20,000 . .. 517,100 18,600 Cost of goods sold Selling and administrative Interest expense Income tax expense 414,600 119.900 7,800 17.900 560.200 s 40,300 353,300 113,000 6,300 14,200 486, 800 s34,000 Total ourrent assets Plant assets [net) 215.700173.900 422.000 383,800 S637, 700. S557,700. Liabilities and Stockholders Equity Current liabilities Total expenses- Net income Accounts pavable Income taxes payable 122.800$10%,800 344,900130,100 9,600 22.10020,300.. Total current liabilities. Lona-term liabiities Bonds payable The common stock recently sold at $18.25per share. Total kabilites 209,700 Stockholders equity Compute the following ratios for 2017. (Round Acid test ratio and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to T decimal place, e.g. 6.8 or 6.8%) Common stock ($5 par) Retained earmings 145,600 143,600 27.600202,400 Total stockholders equity Total liabilities snd stockholders' equity . . S637.700- 373,200348,000.. . S557.700 (a) Current ratio. (b) Acid-test ratio. (c) Accounts receivable turnover. times times (d) Invenitory turnover. (e) Profit margin. T times (f).. Asset turnover.. (g) Return on assets.. (h) Return on common stockholders' equity.. (i)... Earnings per share. -times (i). Price-earnings ratio.. (k) Payout ratio. (I).. Debt to assets ratio. (m). Times interest earned.. timesExplanation / Answer
(a). Current ratio ($215700 / $144900) = 1.5 : 1
(b). Quick ratio ($125800 / $144900) = 0.87 : 1
(c). Accounts receivable turnover ($600500 / $79900) = 7.5 Times
(d). Inventory turnover ($414600 / $79500) = 5.2 Times
(e). Profit margin ($40300 / $600500) = 6.7 %
(f). Assets turnover ($600500 / $597700) = 1.0 Times
(g). Returns on Assets ($40300 / $597700) = 6.7 %
(h). Return on common stockholders’ equity ($40300/ $373200) = 10.8 %
(i). Earnings per share ($40300 / $29120) = 1.38
(j). Price earnings ratio ($18.25 / $1.38) = 13.2 times
(k). Payout ratio ($15100 / $40300) = 37.5 %
(l). Debt to assets ratio ($264500 / $637700) = 41.5 %
(m). Times interest earned ($66000 / $7800) = 8.5 times