At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityCost of goods soldOther operating expensesCurrent Year$ 26,05377,05195, 9088, 732242,846$ 450, 590Interest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per share1 Year AgoCurrent Year$ 31, 38654, 92569, 706$ 66,303$ 113, 31987, 252162, 50087, 51989, 341162,50070, 296$ 450, 590 $ 388, 440$ 357, 318181, 5889,9587,6157,994224, 429388, 440The company's income statements for the current year and one year ago, follow.1 Year AgoFor Year Ended December 31Sales$ 585, 7672 Years Ago556, 479S 29, 288$ 1.80$31, 08543, 15646,4253,596199, 438$ 323, 700$ 42,72870, 822162,50047,650$ 323, 700$ 300, 459116, 94810, 6326,934$ 462,244434,973$ 27,271$ 1.68 (1) Compute debt and equity ratio for the current year and one year ago.Current Year:1 Year Ago:Current Year:1 Year Ago:Numerator:Numerator:Debt Ratio1111Equity Ratio1111Denominator:Denominator:Bwww=Debt RatioDebt ratio%%Equity RatioEquity ratio%%

Ratio analysis helps to analyze the financial statements of the company. The management can take…

At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year Earnings per share $ 26,053 77,051 95,908 8,732 242,846 $ 450,590 $ 113,319. 87, 252 162,500 87,519 $ 450, 590 Current Year 1 Year Ago 2 Years Ago $31, 386 54,925 69,706 7,994 224, 429 $388,440 $ 357, 318 181, 588 9,958 7,615 $ 66, 303 89, 341 162,500 70, 296 $ 388,440 The company's income statements for the current year and one year ago, follow. 1 Year Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income $ 585, 767 $ 31,085 43, 156 556, 479 $ 29, 288 $ 1.80 46,425 3,596 199, 438 $323, 700 $ 42,728 70, 822 162,500 47,650 $ 323, 700 $ 300, 459 116, 948 10, 632 6,934 $ 462,244 434,973 $ 27,271 $ 1.68

At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year Earnings per share $ 26,053 77,051 95,908 8,732 242,846 $ 450,590 $ 113,319. 87, 252 162,500 87,519 $ 450, 590 Current Year 1 Year Ago 2 Years Ago $31, 386 54,925 69,706 7,994 224, 429 $388,440 $ 357, 318 181, 588 9,958 7,615 $ 66, 303 89, 341 162,500 70, 296 $ 388,440 The company's income statements for the current year and one year ago, follow. 1 Year Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income $ 585, 767 $ 31,085 43, 156 556, 479 $ 29, 288 $ 1.80 46,425 3,596 199, 438 $323, 700 $ 42,728 70, 822 162,500 47,650 $ 323, 700 $ 300, 459 116, 948 10, 632 6,934 $ 462,244 434,973 $ 27,271 $ 1.68

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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