The comparative statements of Beulah Company are presented below. BEULAH COMPANY
ID: 2377490 • Letter: T
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 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 BEULAH COMPANY
Income Statement
For the Years Ended December 31 2014 2013 BEULAH COMPANY
Balance Sheets
December 31 Assets 2014 2013 Liabilities and Stockholders Problem 14-6A 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 The comparative statements of Beulah Company are presented below. The common stock recently sold at $19.50 per share. Compute the following ratios for 2014. (Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)
Explanation / Answer
a.current ratio= 204000/134000=1.52
b. acid test ratio=124000/134000=0.925
c.Accounts receivable turnover=500000/85000=5.88
d.inventory turnover=315000/80000=3.94