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Part B: Standardized Financial Statements and Ratios Tomson Corporation 2013 and

ID: 2562448 • Letter: P

Question

Part B: Standardized Financial Statements and Ratios Tomson Corporation 2013 and 2014 Statement of Financial Position Assets Liabilities 2013 2014 2013 2014 Current Liabilities Current Assets Cash A/R Inventory Total s 10,157 A/P S 46,821 -17382 S 43,050 S 8,436 21,530 23,406 Notes Payable S68.726 76213 Tott S 61434 64 203 Long-term Debt S25.000 Owner's Equity Common Stock & Paid-in Surplus Retained Earnings 40,000 40,000 188.316 Net Plant & Equip 226.706 $ 248 306 Total $208,998 228.316 Total Labilities & Total Assets £295.432 324.519 Owners Equity 1. Prepare: The 2014 combined common-size, common-base year statement of financial position for Tomson. Round your intermediate calculations to 2 decimal places and final answers to 4 decimal places. 2. Calculate: 1. 2. 3. 4. 5. 6. The current ratio for each year The quick ratio for each year The cash ratio for each year The NWC to total assets ratio for each year The debt-equity ratio and the equity multiplier for each year The total debt ratio and the long-term debt ratio for each year Round all answers to 2 decimal places.

Explanation / Answer

1. Common size balance sheet 2014

  

2.

= $68726 / $61434

= 1.12 times

= $76213 / $64203

= 1.19 times

= $68726 - $38760 / $61434

= 0.49

= $76213 - $42650 / $64203

= 0.52

= $8436 / $61434

= 0.14

= $10157 / $64203

= 0.16

= ($68726 - $61434) / $295432

= 0.0246

= ($76213 - $64203) / $324519

= 0.037

= $86434 / $208998

= 0.41

= $96203 / $228316

= 0.42

= $295432 / $208998

= 1.41

= $324519 / $228316

= 1.42.

ASSETS Amount($) Percentage(%) LIABILITIES & SHAREHOLDERS EQUITY Amount($) Pecentage(%) Current assets: Current liabilities: Cash $10157 3.13% Accounts payable $46821 14.43% Accounts receivable $23406 7.21% Notes payable $17382 5.35% Inventory $42650 13.14% Total $76213 23.48% Total $64203 19.78% Net plant and equipment $248306 76.51% Common stock & paid in suplus $40000 12.32% Retained earnings $188316 58.02% Total $228316 70.35% Total assets $324519 100% Total liabilities $324519 100%