The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below:(See Images)Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.)(a) Current ratio at 12/31/21 $ $ (b) Acid test ratio at 12/31/21 $ $ (c) Accounts receivable turnover in 2021 $ $ (d) Inventory turnover in 2021 $ $ (e) Profit margin on sales in 2021 $ $ (f) Earnings per share in 2021 $ (g) Return on common stockholders’ equity in 2021 $ $ (h) Price earnings ratio at 12/31/21 $ $ (i) Debt to assets at 12/31/21 $ $ (j) Book value per share at 12/31/21 $ Additional data:Market value of stock at 12/31/21 is $80 per share.Ivanhoe sold 42,000 shares of common stock at par on July 1, 2021.Ivanhoe CompanyCondensed Income StatementFor the Year Ended December 31, 2021Sales revenue$3,658,000Cost of goods sold2,412,000Gross profit1,246,000Administrative and selling expenses748,000Net income$498,000 The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below:Ivanhoe CompanyComparative Balance SheetsAs of December 31, 2020 and 202120212020Cash$751,000$89,500Accounts receivable (net)543,000416,000Inventories570,000510,000Plant and equipment2,642,0001,601,000Accumulated depreciation(387,000 )(226,000 )$4,119,000$2,390,500Accounts payable$510,000$227,000Dividends payable-0-64,500Bonds payable615,000-0-Common stock ($10 par)2,339,0001,661,000Retained earnings655,000438,000$4,119,000$2,390,500

Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 56CE

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Question

The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below:

(See Images)

Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.)

(a)

Current ratio at 12/31/21

(b)

Acid test ratio at 12/31/21

(c)

Accounts receivable turnover in 2021

(d)

Inventory turnover in 2021

(e)

Profit margin on sales in 2021

(f)

Earnings per share in 2021

(g)

Return on common stockholders’ equity in 2021

(h)

Price earnings ratio at 12/31/21

(i)

Debt to assets at 12/31/21

(j)

Book value per share at 12/31/21

Additional data:
Market value of stock at 12/31/21 is $80 per share.
Ivanhoe sold 42,000 shares of common stock at par on July 1, 2021.
Ivanhoe Company
Condensed Income Statement
For the Year Ended December 31, 2021
Sales revenue
$3,658,000
Cost of goods sold
2,412,000
Gross profit
1,246,000
Administrative and selling expenses
748,000
Net income
$498,000

The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below:
Ivanhoe Company
Comparative Balance Sheets
As of December 31, 2020 and 2021
2021
2020
Cash
$751,000
$89,500
Accounts receivable (net)
543,000
416,000
Inventories
570,000
510,000
Plant and equipment
2,642,000
1,601,000
Accumulated depreciation
(387,000 )
(226,000 )
$4,119,000
$2,390,500
Accounts payable
$510,000
$227,000
Dividends payable
-0-
64,500
Bonds payable
615,000
-0-
Common stock ($10 par)
2,339,000
1,661,000
Retained earnings
655,000
438,000
$4,119,000
$2,390,500

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