The comparative statements of Beulah Company are presented below. BEULAH COMPANY

Question

The comparative statements of Beulah Company are presented below. BEULAH COMPANY Income Statement For the Years Ended December 31 2014 2013 Net sales (all on account) $500,000 $420,000 Expenses Cost of goods sold 315,000 254,000 Selling and administrative 120,800 114,800 Interest expense 7,500 6,500 Income tax expense 20,000 15,000 Total expenses 463,300 390,300 Net income $ 36,700 $ 29,700 BEULAH COMPANY Balance Sheets December 31 Assets 2014 2013 Current assets Cash $ 21,000 $ 18,000 Short-term investments 18,000 15,000 Accounts receivable (net) 85,000 75,000 Inventory 80,000 60,000 Total current assets 204,000 168,000 Plant assets (net) 423,000 383,000 Total assets $627,000 $551,000 Liabilities and Stockholders

Explanation / Answer

Please I am answering first correctly so lifesaver me only.. Thanks.. Anybody plz don't copy my answers thank you all: a) current ratio - Current assets/c.liabilities = 204,000/134000 = 1.52:1 b. acid test: Current assets - stock/c.liabilities = 204,000 - 80000/134000 = 0.93 c. accounts rec turnover times = Sales/receivables = 500000/85000 = 5.9 times. d. Inventory turnover times = sales/inventory = 500000/80000 = 6.3 times e.Profit margin = Net income/ Sales = 36700/500000 * 100 = 7.3% f. asset turnover times = Sales/ net assets 500000/627000-254000 = 1.3 times g. Return on assets % = Net icome/netassets *100 = 36700/627000-254000 * 100 = 9.8% h. Return on common stockholders’ equity % = Net income/Stockholders’ equity Common stock * 100 = 36700/150000 * 100 = 24.5% i. Earning per share = NEt income/no.of common equity shares = 36700/(150000/5) = $1.22 earnings per share. j. Price-earnings ratio times = Market price per share/earning per share = 19.5/1.22 = 16 times k. Payout ratio % = net income - (difference in retained earnings in the years)/retained earnings * 100 = 36700 - (223000-200000)/223000 * 100 = 6.1% l. Debt to total assets % = bondpayable/total assets *100 = 120000/627000 *100 = 19.1% m. Times interest earned times = net income/interest = 36700/7500 = 4.9 times

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