Condensed balance sheet and income statement data for Bridgeport Corporation are presented here. Bridgeport Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 32,000 $ 22,000 $ 20,000 Accounts receivable (net) 52,000 47,000 50,000 Other current assets 93,000 98,000 67,000 Investments 58,000 73,000 48,000 Plant and equipment (net) 500,000 370,000 358,000 $735,000 $610,000 $543,000 Current liabilities $ 87,000 $ 82,000 $ 72,000 Long-term debt 148,000 88,000 53,000 Common stock, $10 par 323,000 313,000 303,000 Retained earnings 177,000 127,000 115,000 $735,000 $610,000 $543,000 Bridgeport Corporation Income Statements For the Years Ended December 31 2020 2019 Sales revenue $743,000 $603,000 Less: Sales returns and allowances 42,000 32,000 Net sales 701,000 571,000 Cost of goods sold 428,000 353,000 Gross profit 273,000 218,000 Operating expenses (including income taxes) 182,000 152,000 Net income $ 91,000 $ 66,000 Additional information: 1. The market price of Bridgeport’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2019 and 2020. (Round answers to 2 decimal places, e.g. 1.83 or 1.83%.) 2020 2019 Profit margin % % Gross profit rate % % Asset turnover times time
Condensed balance sheet and income statement data for Bridgeport Corporation are presented here. Bridgeport Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 32,000 $ 22,000 $ 20,000 Accounts receivable (net) 52,000 47,000 50,000 Other current assets 93,000 98,000 67,000 Investments 58,000 73,000 48,000 Plant and equipment (net) 500,000 370,000 358,000 $735,000 $610,000 $543,000 Current liabilities $ 87,000 $ 82,000 $ 72,000 Long-term debt 148,000 88,000 53,000 Common stock, $10 par 323,000 313,000 303,000 Retained earnings 177,000 127,000 115,000 $735,000 $610,000 $543,000 Bridgeport Corporation Income Statements For the Years Ended December 31 2020 2019 Sales revenue $743,000 $603,000 Less: Sales returns and allowances 42,000 32,000 Net sales 701,000 571,000 Cost of goods sold 428,000 353,000 Gross profit 273,000 218,000 Operating expenses (including income taxes) 182,000 152,000 Net income $ 91,000 $ 66,000 Additional information: 1. The market price of Bridgeport’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2019 and 2020. (Round answers to 2 decimal places, e.g. 1.83 or 1.83%.) 2020 2019 Profit margin % % Gross profit rate % % Asset turnover times time
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.3C
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Question
Condensed balance sheet and income statement data for Bridgeport Corporation are presented here.
|
Bridgeport Corporation
Balance Sheets December 31 |
||||||
|
2020
|
2019
|
2018
|
||||
| Cash |
$ 32,000
|
$ 22,000
|
$ 20,000
|
|||
|
52,000
|
47,000
|
50,000
|
||||
| Other current assets |
93,000
|
98,000
|
67,000
|
|||
| Investments |
58,000
|
73,000
|
48,000
|
|||
| Plant and equipment (net) |
500,000
|
370,000
|
358,000
|
|||
|
$735,000
|
$610,000
|
$543,000
|
||||
| Current liabilities |
$ 87,000
|
$ 82,000
|
$ 72,000
|
|||
| Long-term debt |
148,000
|
88,000
|
53,000
|
|||
| Common stock, $10 par |
323,000
|
313,000
|
303,000
|
|||
|
177,000
|
127,000
|
115,000
|
||||
|
$735,000
|
$610,000
|
$543,000
|
|
Bridgeport Corporation
Income Statements For the Years Ended December 31 |
||||
|
2020
|
2019
|
|||
| Sales revenue |
$743,000
|
$603,000
|
||
| Less: Sales returns and allowances |
42,000
|
32,000
|
||
| Net sales |
701,000
|
571,000
|
||
| Cost of goods sold |
428,000
|
353,000
|
||
| Gross profit |
273,000
|
218,000
|
||
| Operating expenses (including income taxes) |
182,000
|
152,000
|
||
| Net income |
$ 91,000
|
$ 66,000
|
Additional information:
| 1. | The market price of Bridgeport’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. | |
| 2. | You must compute dividends paid. All dividends were paid in cash. |
(a)
Compute the following ratios for 2019 and 2020. (Round answers to 2 decimal places, e.g. 1.83 or 1.83%.)
|
2020
|
2019
|
|||||
| Profit margin |
|
% |
|
% | ||
| Gross profit rate |
|
% |
|
% | ||
| Asset turnover |
|
times |
|
times | ||
| Earnings per share |
$
|
$
|
||||
| Price-earnings ratio |
|
times |
|
times | ||
| Payout ratio |
|
% |
|
% | ||
| Debt to assets ratio |
|
% |
|
% |
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