Condensed financial statements for Robeson Company appear below: Comparative Balance Sheets 2014 2013 Cash $ 128,000 $ 201,000 Accounts receivable 472,000 438,000 Inventories 797,000 673,000 Prepaid expenses 81,000 92,000 Plant and equipment (net) 2,655,000 2,428,000 Total assets $4,133,000 $3,832,000 Accounts payable $ 198,000 $ 280,600 Long-term bonds payable 1,000,000 1,000,000 Preferred stock, 10%, $100 par 450,000 450,000 Common stock, no par 1,800,000 1,800,000 Retained earnings 685,000 301,400 Total liabilities and equities $4,133,000 $3,832,000 D. Gross Profit Percentage E. Accounts Receivable Turnover F. Debt Ratio Income Statement December 31, 2014 Sales, net $5,400,000 Less cost of goods sold 3,240,000 Gross margin 2,160,000 Less operating expenses 1,010,000 Net operating income 1,150,000 Interest expense 80,000 Net income before taxes 1,070,000 Less income taxes 321,000 Net income $ 749,000 There were 72,000 shares of common stock outstanding throughout the 2014. Dividends on common stock amounted to $320,400 and dividends on preferred stock amounted to $45,000. The market value of a share of common stock was $54 at the end of 2014. The income tax rate is 30%. Refer to the preceding financial statements and other information. Calculate the following ratios for 2014.
Condensed financial statements for Robeson Company appear below:
|
Comparative Balance Sheets |
||
|
|
2014 |
2013 |
|
Cash |
$ 128,000 |
$ 201,000 |
|
|
472,000 |
438,000 |
|
Inventories |
797,000 |
673,000 |
|
Prepaid expenses |
81,000 |
92,000 |
|
Plant and equipment (net) |
2,655,000 |
2,428,000 |
|
Total assets |
$4,133,000 |
$3,832,000 |
|
|
|
|
|
Accounts payable |
$ 198,000 |
$ 280,600 |
|
Long-term bonds payable |
1,000,000 |
1,000,000 |
|
|
450,000 |
450,000 |
|
Common stock, no par |
1,800,000 |
1,800,000 |
|
|
685,000 |
301,400 |
|
Total liabilities and equities |
$4,133,000 |
$3,832,000 |
|
D. |
Gross Profit Percentage |
|
E. |
Accounts Receivable Turnover |
|
F. |
Debt Ratio |
|
Income Statement December 31, 2014 |
|
|
Sales, net |
$5,400,000 |
|
Less cost of goods sold |
3,240,000 |
|
Gross margin |
2,160,000 |
|
Less operating expenses |
1,010,000 |
|
Net operating income |
1,150,000 |
|
Interest expense |
80,000 |
|
Net income before taxes |
1,070,000 |
|
Less income taxes |
321,000 |
|
Net income |
$ 749,000 |
There were 72,000 shares of common stock outstanding throughout the 2014. Dividends on common stock amounted to $320,400 and dividends on preferred stock amounted to $45,000. The market value of a share of common stock was $54 at the end of 2014. The income tax rate is 30%.
Refer to the preceding financial statements and other information. Calculate the following ratios for 2014.
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