Asset turnover fill in the blank 13 14. Return on total assets fill in the blank 14 % 15. Return on stockholders’ equity fill in the blank 15 % 16. Return on common stockholders’ equity fill in the blank 16 % 17. Earnings per share on common stock $fill in the blank 17
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Twenty metrics of liquidity, Solvency, and Profitability
The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $56 on December 31, 20Y8.
| AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 |
||||
| 20Y8 | 20Y7 | |||
| Sales | $3,495,240 | $3,220,340 | ||
| Cost of goods sold | (1,270,200) | (1,168,580) | ||
| Gross profit | $2,225,040 | $2,051,760 | ||
| Selling expenses | $(776,400) | $(938,590) | ||
| Administrative expenses | (661,380) | (551,240) | ||
| Total operating expenses | (1,437,780) | (1,489,830) | ||
| Operating income | $787,260 | $561,930 | ||
| Other revenue and expense: | ||||
| Other income | 41,440 | 35,870 | ||
| Other expense (interest) | (256,000) | (140,800) | ||
| Income before income tax | $572,700 | $457,000 | ||
| Income tax expense | (68,700) | (55,200) | ||
| Net income | $504,000 | $401,800 |
| AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders’ Equity For the Years Ended December 31, 20Y8 and 20Y7 |
||||||||||||||||||
| 20Y8 | 20Y7 | |||||||||||||||||
Stock |
Common Stock |
Earnings |
Preferred Stock |
Common Stock |
Retained Earnings |
|||||||||||||
| Balances, Jan. 1 | $480,000 | $550,000 | $2,333,200 | $480,000 | $550,000 | $1,961,800 | ||||||||||||
| Net income | 504,000 | 401,800 | ||||||||||||||||
| Dividends: | ||||||||||||||||||
| Preferred stock | (8,400) | (8,400) | ||||||||||||||||
| Common stock | (22,000) | (22,000) | ||||||||||||||||
| Balances, Dec. 31 | $480,000 | $550,000 | $2,806,800 | $480,000 | $550,000 | $2,333,200 |
| AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7 |
||||
| Dec. 31, 20Y8 | Dec. 31, 20Y7 | |||
| Assets | ||||
| Current assets: | ||||
| Cash | $830,050 | $434,230 | ||
| Temporary investments | 1,256,300 | 719,580 | ||
| 642,400 | 605,900 | |||
| Inventories | 481,800 | 365,000 | ||
| Prepaid expenses | 157,034 | 86,850 | ||
| Total current assets | $3,367,584 | $2,211,560 | ||
| Long-term investments | 1,169,696 | 14,487 | ||
| Property, plant, and equipment (net) | 3,520,000 | 3,168,000 | ||
| Total assets | $8,057,280 | $5,394,047 | ||
| Liabilities | ||||
| Current liabilities | $1,020,480 | $270,847 | ||
| Long-term liabilities: | ||||
| Mortgage note payable, 8%, due in 15 years | $1,440,000 | $0 | ||
| Bonds payable, 8%, due in 20 years | 1,760,000 | 1,760,000 | ||
| Total long-term liabilities | $3,200,000 | $1,760,000 | ||
| Total liabilities | $4,220,480 | $2,030,847 | ||
| Preferred $0.70 stock, $40 par | $480,000 | $480,000 | ||
| Common stock, $10 par | 550,000 | 550,000 | ||
| Retained earnings | 2,806,800 | 2,333,200 | ||
| Total stockholders' equity | $3,836,800 | $3,363,200 | ||
| Total liabilities and stockholders' equity | $8,057,280 | $5,394,047 |
Instructions:
Determine the following measures for 20Y8. Round ratio values to one decimal place and dollar amounts to the nearest cent. For number of days' sales in receivables and number of days' sales in inventory, round intermediate calculations to the nearest whole dollar and final amounts to one decimal place. Assume there are 365 days in the year.
I only need 13,14,16, and 17 filled out.
| 1. |
$fill in the blank 1 | |
| 2. |
fill in the blank 2 | |
| 3. Quick ratio | fill in the blank 3 | |
| 4. Accounts receivable turnover | fill in the blank 4 | |
| 5. Days' sales in receivables | fill in the blank 5 | days |
| 6. Inventory turnover | fill in the blank 6 | |
| 7. Days' sales in inventory | fill in the blank 7 | days |
| 8. Debt ratio | fill in the blank 8 | % |
| 9. Ratio of liabilities to stockholders' equity | fill in the blank 9 | |
| 10. Ratio of fixed assets to long-term liabilities | fill in the blank 10 | |
| 11. Times interest earned | fill in the blank 11 | times |
| 12. Times preferred dividends earned | fill in the blank 12 | times |
| 13. Asset turnover | fill in the blank 13 | |
| 14. Return on total assets | fill in the blank 14 | % |
| 15. Return on stockholders’ equity | fill in the blank 15 | % |
| 16. Return on common stockholders’ equity | fill in the blank 16 | % |
| 17. Earnings per share on common stock | $fill in the blank 17 | |
| 18. Price-earnings ratio | fill in the blank 18 | |
| 19. Dividends per share of common stock | $fill in the blank 19 | |
| 20. Dividend yield | fill in the blank 20 | % |
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