CurentLlabilitiesCument AssetsCalculated Value1.Working capital:RatioNumeratorDenominatorCalculated Value2Current ratio3.Quick ratio4.Accounts receivableturnover5.Number of dayssales in receivables6.Inventory tumover7.Number of days'sales in inventory8.Ratio of Fixed assets tolong-term liabilities9.Ratio of labilities tostockholders' equityPr. 17-489.Ratio of lablities tostockholders' equity10.Times interest eamed11.Asset turnover12.Return on total assets13.Retum on stockholdersequity14.Return on commonstockholders' equityEamings per shareon common stock15.16.Price-eamings ratio17.Dividends per shareof common stock18.Dividend yield Stargel Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y120Υ220Υ12010$5,375,000$4,545,000Retained earnings, January 1.900,000925,000Net income$6,275,000$5,470,000TotalDividends:Preferred stock dividends...$ 45,000$ 45,00050,000$ 95,000$6,180,00050,0002$$5,375,000Common stock dividends.95,000Total dividends.......Retained earnings, December 31Chapter 17 Financial Statement Analysis877Stargel Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1Sales20Υ220Y1Cost of goods sold..Gross profitSelling expensesAdministrative expenses..Total operating expensesIncome from operations$10,000.0005,350.000$ 4650,000$9,400,0004,950.000$450,000$ 2,000,0001,500,000$ 3.500.000$ 1,150,000$1,880,0001,410,000$3.290,000$1,160,000Other revenue150,000140.000$ 1,300.000Other expense (interest).Income before income tax$1,300,000170.000150.000Income tax expense$ 1,130,000$1,150,000Net income230,000225,000$ 900,000$ 925,000Stargel Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y120Y220Y1AssetsCurrent assets:Cash....S 500,000$ 400,000Marketable securities.1,010,0001,000,000Accounts receivable (net).740,000510,000Inventories1,190,000950,000Prepaid expenses250,000229,000Total current assets.$3,690,000Long-term investmentsProperty, plant, and equipment (net)$3.089,0002,300,0002,350,0003,740,0003,366,000Total assets$9,780,000$8,755,000LiabilitiesCurrent liabilities..$ 900.000S 880,000Long-term liabilities:Mortgage note payable, 10%.Bonds payable, 10%...Total long-term liabilitiesTotal liabilities....$ 200,0001,500,0001,500,000$1,500,000$1,700,000$2,600,000$2,380,000Stockholders' Equity$ 500,000$ 500,000500,000Preferred 50.90 stock, $10 parCommon stock, $5 par.500,0005,375,000$6.375,000Retained earnings...6,180,000Total stockholders' equity$7,180,000Total liabilities and stockholders' equity...$9,780,000$8,755,000

Working Capital = Current Assets - Current Liability Current Ratio = Current Assets / Current…

Answered: Current ratio

Business

Accounting

Current ratio

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 15E

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Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
COMMON AND PREFERRED CASH DIVIDENDS Ramirez Company currently has 100,000 shares of 1 par common stock outstanding and 5,000 shares of 50 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of 0.30 per share on common stock to shareholders of record on August 1, payable on August 5. On July 15, the board of directors declared a semiannual dividend of 5 per share on preferred stock to shareholders of record on August 5, payable on August 10. Prepare journal entries for the declaration and payment of the common and preferred stock cash dividends.
STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Kris Kraft Stores had the following stock transactions during the year: (a) Issued 8,000 shares of no-par common stock with a stated value of 5 per share for 40,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 5 per share for 33,000 cash. (c) Issued 5,000 shares of no-par, 6% preferred stock with a stated value of 15 per share for 75,000 cash. (d) Issued 10,000 shares of 5 par common stock for land with a fair market value of 50,000. (e) Issued 20,000 shares of 5 par common stock with a 7 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 50 par, 8% preferred stock for land with a fair market value of 405,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Dans Hobby Stores had the following stock transactions during the year: (a) Issued 5,000 shares of no-par common stock with a stated value of 10 per share for 50,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 10 per share for 63,000 cash. (c) Issued 3,500 shares of no-par, 6% preferred stock with a stated value of 22 per share for 77,000 cash. (d) Issued 10,000 shares of 10 par common stock for land with a fair market value of 100,000. (e) Issued 11,000 shares of 10 par common stock with an 11 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 30 par, 6% preferred stock for land with a fair market value of 243,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.
Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.