Following is the balance sheet of Walton Company for 2018 HALTON atance 3.5 15,4
ID: 2398301 • Letter: F
Question
Following is the balance sheet of Walton Company for 2018 HALTON atance 3.5 15,4ee 7,980 12,988 Harketable securities Property and equipment Accumulated depreeiation Total assets Liabilities and Stockholders Equity Accounts payable Current hotes pay Mortgage payable Bonds payaele s s,960 114,480 Retained earnigs otal iabilities and stockholders" equity The average number of common stock shares outstanding during 2018 was 870 shares. Net Income for the year was $14,900 Requirec Compute each of the following: (Round your enswers to 2 decimal places.) b Earnings per share Quick(acid-test) raio dReturn on investment Return on equity Debt 50 equity ratoExplanation / Answer
Answers
ASSETS
Current Assets:
Cash
$ 15,400.00
Marketable Securities
$ 7,980.00
Accounts receivables
$ 12,980.00
Inventory
$ 11,150.00
Total Current Assets
$ 47,510.00
Other Assets:
Property & Equipment
$ 165,500.00
Accumulated Depreciation
$ (12,300.00)
Total Other Assets
$ 153,200.00
Total Assets
$ 200,710.00
LIABILITIES
Current Liabilities:
A/P
$ 8,960.00
Current Notes Payable
$ 3,520.00
Total Current Liabilities
$ 12,480.00
Long Term Liabilities:
Mortgage Payable
$ 4,900.00
Bonds Payable
$ 21,100.00
Total Long Term Liabilities
$ 26,000.00
Total Liabilities
$ 38,480.00
STOCKHOLDERS' EQUITY
Common Stock
$ 114,480.00
Retained Earnings
$ 47,750.00
Total Stockholder's Equity
$ 162,230.00
Total Liabilities & SE
$ 200,710.00
Requirement no.
Numerator
/
Denominator
=
Ratio
a.
Current Assets
/
Current Liabilities
=
Current Ratio
$ 47,510.00
/
$ 12,480.00
=
3.81
b.
Net Income
/
Common Stock shares outstanding
=
Earning per share
$ 14,900.00
/
870
=
$ 17.13 per share
c.
(Current Assets – Inventory)
/
Current Liabilities
=
Quick Ratio
$ 36,360.00 [47510 – 11150]
/
$ 12,480.00
=
2.91
d.
Net Income
/
Total Assets
=
Return on Investments
$ 14,900.00
/
$ 200,710.00
=
0.0742 x 100 = 7.42%
e.
Net Income
/
Total Stockholder's Equity
=
Return on Equity
$ 14,900.00
/
$ 162,230.00
=
0.0918 x 100 = 9.18%
f.
Total Liabilities
/
Total Stockholder's Equity
=
Debt to Equity Ratio
$ 38,480.00
/
$ 162,230.00
=
0.2372 x 100 = 23.72%
ASSETS
Current Assets:
Cash
$ 15,400.00
Marketable Securities
$ 7,980.00
Accounts receivables
$ 12,980.00
Inventory
$ 11,150.00
Total Current Assets
$ 47,510.00
Other Assets:
Property & Equipment
$ 165,500.00
Accumulated Depreciation
$ (12,300.00)
Total Other Assets
$ 153,200.00
Total Assets
$ 200,710.00
LIABILITIES
Current Liabilities:
A/P
$ 8,960.00
Current Notes Payable
$ 3,520.00
Total Current Liabilities
$ 12,480.00
Long Term Liabilities:
Mortgage Payable
$ 4,900.00
Bonds Payable
$ 21,100.00
Total Long Term Liabilities
$ 26,000.00
Total Liabilities
$ 38,480.00
STOCKHOLDERS' EQUITY
Common Stock
$ 114,480.00
Retained Earnings
$ 47,750.00
Total Stockholder's Equity
$ 162,230.00
Total Liabilities & SE
$ 200,710.00