The comparative financial statements prepared at December 31, 2015, for Prince C

Question

The comparative financial statements prepared at December 31, 2015, for Prince Company showed the fol llowing summarized data 2,709 2015 2014 Income statement: Sales revenue Cost of goods sold $191,900" $167,600 101,600 112,900 Gross profit Operating expenses and interest expense 79,000 56,300 66,000 53,300 Pretax income Income tax 22,700 6,810 12,700 3,810 Net income 15,890 8,890 Balance sheet: Cash Accounts receivable (net) Inventory Operational assets (net) $ 4,600 16,000 40,100 45,800 7,700 17,900 33,400 36,100 $106,500$ 95,100 Current liabilities (no interest) Long-term liabilities (9% interest) Common stock (par $5) Retained earnings $14,500 15,500 43,000 29,800 6,800 43,000 29,800 19,200 $106,500 95,100 One-third was credit sales

Explanation / Answer

Answer:

Particulars Ratio Return on equity 37.13 % Return on assets 15.76 % EPS 2.666107 per share Fixed asset turnover 4.686203 times Profit margin 8.28 % Current ratio 4.186207 times Quick ratio 1.42069 times Receivable turnover 11.32153 Times Average collection period 32.23945 Days Inventory turnover 3.07 Times Average days supply 118.89 Days Times interest earned 1.403197 times Debt to equity ratio 0.877551 P/E ratio 12.3776

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