Condensed balance sheet and income statement data for Pina Corporation are presented here. PINA CORPORATION Balance Sheets December 31 2022 2021 2020 Cash $ 32,000 $ 22,000 $ 20,000 Accounts receivable (net) 52,000 47,000 50,000 Other current assets 97,000 102,000 71,000 Investments 62,000 77,000 52,000 Plant and equipment (net) 500,000 370,000 358,000 $743,000 $618,000 $551,000 Current liabilities $ 87,000 $ 82,000 $ 72,000 Long-term debt 152,000 92,000 57,000 Common stock, $10 par 327,000 317,000 307,000 Retained earnings 177,000 127,000 115,000 $743,000 $618,000 $551,000 PINA CORPORATION Income Statements For the Years Ended December 31 2022 2021 Sales revenue $747,000 $607,000 Less: Sales returns and allowances 42,000 32,000 Net sales 705,000 575,000 Cost of goods sold 432,000 357,000 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 Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Compute the following ratios for 2021 and 2022. 2022 2021 Profit margin enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Gross profit rate enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Asset turnover enter asset turnover in times times enter asset turnover in times times (Round answers to 2 decimal places, e.g. 1.83.) Earnings per share $enter earnings per share in dollars $enter earnings per share in dollars (Round answers to 2 decimal places, e.g. 1.83.) Price-earnings ratio enter price-earnings ratio in times times enter price-earnings ratio in times times (Round answers to 1 decimal place, e.g. 1.5.) Payout ratio enter percentages % enter percentages % (Round answers to 0 decimal places, e.g. 15%.) Debt to assets ratio enter percentages % enter percentages
Condensed balance sheet and income statement data for Pina Corporation are presented here. PINA CORPORATION Balance Sheets December 31 2022 2021 2020 Cash $ 32,000 $ 22,000 $ 20,000 Accounts receivable (net) 52,000 47,000 50,000 Other current assets 97,000 102,000 71,000 Investments 62,000 77,000 52,000 Plant and equipment (net) 500,000 370,000 358,000 $743,000 $618,000 $551,000 Current liabilities $ 87,000 $ 82,000 $ 72,000 Long-term debt 152,000 92,000 57,000 Common stock, $10 par 327,000 317,000 307,000 Retained earnings 177,000 127,000 115,000 $743,000 $618,000 $551,000 PINA CORPORATION Income Statements For the Years Ended December 31 2022 2021 Sales revenue $747,000 $607,000 Less: Sales returns and allowances 42,000 32,000 Net sales 705,000 575,000 Cost of goods sold 432,000 357,000 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 Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Compute the following ratios for 2021 and 2022. 2022 2021 Profit margin enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Gross profit rate enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Asset turnover enter asset turnover in times times enter asset turnover in times times (Round answers to 2 decimal places, e.g. 1.83.) Earnings per share $enter earnings per share in dollars $enter earnings per share in dollars (Round answers to 2 decimal places, e.g. 1.83.) Price-earnings ratio enter price-earnings ratio in times times enter price-earnings ratio in times times (Round answers to 1 decimal place, e.g. 1.5.) Payout ratio enter percentages % enter percentages % (Round answers to 0 decimal places, e.g. 15%.) Debt to assets ratio enter percentages % enter percentages
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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Condensed balance sheet and income statement data for Pina Corporation are presented here.
PINA CORPORATION
Balance Sheets December 31 |
||||||
---|---|---|---|---|---|---|
2022
|
2021
|
2020
|
||||
Cash
|
$ 32,000
|
$ 22,000
|
$ 20,000
|
|||
Accounts receivable (net)
|
52,000
|
47,000
|
50,000
|
|||
Other current assets
|
97,000
|
102,000
|
71,000
|
|||
Investments
|
62,000
|
77,000
|
52,000
|
|||
Plant and equipment (net)
|
500,000
|
370,000
|
358,000
|
|||
$743,000
|
$618,000
|
$551,000
|
||||
Current liabilities
|
$ 87,000
|
$ 82,000
|
$ 72,000
|
|||
Long-term debt
|
152,000
|
92,000
|
57,000
|
|||
Common stock, $10 par
|
327,000
|
317,000
|
307,000
|
|||
|
177,000
|
127,000
|
115,000
|
|||
$743,000
|
$618,000
|
$551,000
|
PINA CORPORATION
Income Statements For the Years Ended December 31 |
||||
---|---|---|---|---|
2022
|
2021
|
|||
Sales revenue
|
$747,000
|
$607,000
|
||
Less: Sales returns and allowances
|
42,000
|
32,000
|
||
Net sales
|
705,000
|
575,000
|
||
Cost of goods sold
|
432,000
|
357,000
|
||
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 Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. | |
2. | You must compute dividends paid. All dividends were paid in cash. |
Compute the following ratios for 2021 and 2022.
2022
|
2021
|
|||||||
---|---|---|---|---|---|---|---|---|
Profit margin
|
enter percentages
|
% |
enter percentages
|
% | (Round answers to 1 decimal place, e.g. 1.5%.) | |||
Gross profit rate
|
enter percentages
|
% |
enter percentages
|
% | (Round answers to 1 decimal place, e.g. 1.5%.) | |||
Asset turnover
|
enter asset turnover in times
|
times |
enter asset turnover in times
|
times | (Round answers to 2 decimal places, e.g. 1.83.) | |||
Earnings per share
|
$enter earnings per share in dollars
|
$enter earnings per share in dollars
|
(Round answers to 2 decimal places, e.g. 1.83.) | |||||
Price-earnings ratio
|
enter price-earnings ratio in times
|
times |
enter price-earnings ratio in times
|
times | (Round answers to 1 decimal place, e.g. 1.5.) | |||
Payout ratio
|
enter percentages
|
% |
enter percentages
|
% | (Round answers to 0 decimal places, e.g. 15%.) | |||
Debt to assets ratio
|
enter percentages
|
% |
enter percentages
|
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