Determine the following (1–18) measures for 20Y2, rounding to one decimal place, except the dollar amount, which should be rounded to the nearest cent. Use the rounded answer to the requirement for subsequent requirements, if required. Assume 365 days a year. Show each formula and calculation on the worksheet. amount which should be rounded to the nearest cent. use the rounded answer to the requirment for subsequent requirements, if required. Assume 365 days a year. Formula Calculation and Answer 1 Working Capital Stargel Inc. 2 Current ratio Comparative Retained Earnings Statement 3 Quick ratio For the Years Ended December 31, 20Y2 and 20Y1 4 Accounts receivable turnover 20Y2 20Y1 5 Number of days' sales in receivables days Retained earnings, January 1 $5,375,000 $4,545,000 6 Inventory turnover Net income $900,000 $925,000 7 Number of days' sales in inventory days Dividends: 8 Ratio of fixed assets to long-term liabilities On preferred stock -45,000 -45,000 9 Ratio of liabilities to stockholders' equity On common stock -50,000 -50,000 10 Times interest earned Increase in retained earnings $805,000 $830,000 11 Asset turnover Retained earnings, December 31 $6,180,000 $5,375,000 12 Return on total assets % 13 Return on stockholders’ equity % 14 Return on common stockholders’ equity % 15 Earnings per share on common stock 16 Price-earnings rati0 17 Dividends per share of common stock 18 Dividend yield Stargel Inc. Stargel Inc. Comparative Balance Sheet Comparative Income Statement December 31, 20Y2 and 20Y1 For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 20Y2 20Y1 Assets Sales $10,000,000 $9,400,000 Current assets: Cost of goods sold -5,350,000 -4,950,000 Cash $500,000 $400,000 Gross profit $4,650,000 $4,450,000 Marketable securities 1,010,000 1,000,000 Selling expenses -$2,000,000 -$1,880,000 Accounts receivable (net) 740,000 510,000 Administrative expenses -1,500,000 -1,410,000 Inventories 1,190,000 950,000 Total operating expenses -$3,500,000 -$3,290,000 Prepaid expenses 250,000 229,000 Operating income $1,150,000 $1,160,000 Total current assets $3,690,000 $3,089,000 Other revenue and expense: Long-term investments 2,350,000 2,300,000 Other revenue 150,000 140,000 Property, plant, and equipment (net) 3,740,000 3,366,000 Other expense (interest) -170,000 -150,000 Total assets $9,780,000 $8,755,000 Income before income tax expense $1,130,000 $1,150,000 Liabilities Income tax expense -230,000 -225,000 Current liabilities $900,000 $880,000 Net income $900,000 $925,000 Long-term liabilities: Mortgage note payable, 10% $200,000 $0 Bonds payable, 10% 1,500,000 1,500,000 Total long-term liabilities $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par $500,000 $500,000 Common stock, $5 par 500,000 500,000 Retained earnings 6,180,000 5,375,000 Total stockholders' equity $7,180,000 $6,375,000 Total liabilities and stockholders' equity $9,780,000 $8,755,000

Determine the following (1–18) measures for 20Y2, rounding to one decimal place, except the dollar amount, which should be rounded to the nearest cent. Use the rounded answer to the requirement for subsequent requirements, if required. Assume 365 days a year. Show each formula and calculation on the worksheet. amount which should be rounded to the nearest cent. use the rounded answer to the requirment for subsequent requirements, if required. Assume 365 days a year. Formula Calculation and Answer 1 Working Capital Stargel Inc. 2 Current ratio Comparative Retained Earnings Statement 3 Quick ratio For the Years Ended December 31, 20Y2 and 20Y1 4 Accounts receivable turnover 20Y2 20Y1 5 Number of days' sales in receivables days Retained earnings, January 1 $5,375,000 $4,545,000 6 Inventory turnover Net income $900,000 $925,000 7 Number of days' sales in inventory days Dividends: 8 Ratio of fixed assets to long-term liabilities On preferred stock -45,000 -45,000 9 Ratio of liabilities to stockholders' equity On common stock -50,000 -50,000 10 Times interest earned Increase in retained earnings $805,000 $830,000 11 Asset turnover Retained earnings, December 31 $6,180,000 $5,375,000 12 Return on total assets % 13 Return on stockholders’ equity % 14 Return on common stockholders’ equity % 15 Earnings per share on common stock 16 Price-earnings rati0 17 Dividends per share of common stock 18 Dividend yield Stargel Inc. Stargel Inc. Comparative Balance Sheet Comparative Income Statement December 31, 20Y2 and 20Y1 For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 20Y2 20Y1 Assets Sales $10,000,000 $9,400,000 Current assets: Cost of goods sold -5,350,000 -4,950,000 Cash $500,000 $400,000 Gross profit $4,650,000 $4,450,000 Marketable securities 1,010,000 1,000,000 Selling expenses -$2,000,000 -$1,880,000 Accounts receivable (net) 740,000 510,000 Administrative expenses -1,500,000 -1,410,000 Inventories 1,190,000 950,000 Total operating expenses -$3,500,000 -$3,290,000 Prepaid expenses 250,000 229,000 Operating income $1,150,000 $1,160,000 Total current assets $3,690,000 $3,089,000 Other revenue and expense: Long-term investments 2,350,000 2,300,000 Other revenue 150,000 140,000 Property, plant, and equipment (net) 3,740,000 3,366,000 Other expense (interest) -170,000 -150,000 Total assets $9,780,000 $8,755,000 Income before income tax expense $1,130,000 $1,150,000 Liabilities Income tax expense -230,000 -225,000 Current liabilities $900,000 $880,000 Net income $900,000 $925,000 Long-term liabilities: Mortgage note payable, 10% $200,000 $0 Bonds payable, 10% 1,500,000 1,500,000 Total long-term liabilities $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par $500,000 $500,000 Common stock, $5 par 500,000 500,000 Retained earnings 6,180,000 5,375,000 Total stockholders' equity $7,180,000 $6,375,000 Total liabilities and stockholders' equity $9,780,000 $8,755,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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	Determine the following (1–18) measures for 20Y2, rounding to one decimal place, except the dollar amount, which should be rounded to the nearest cent. Use the rounded answer to the requirement for subsequent requirements, if required. Assume 365 days a year. Show each formula and calculation on the worksheet.
amount	which should be rounded to the nearest cent. use the rounded answer to				the requirment for subsequent requirements, if required. Assume 365 days a year.
			Formula	Calculation and Answer
1	Working Capital					Stargel Inc.
2	Current ratio					Comparative Retained Earnings Statement
3	Quick ratio					For the Years Ended December 31, 20Y2 and 20Y1
4	Accounts receivable turnover								20Y2	20Y1
5	Number of days' sales in receivables	days		Retained earnings, January 1			$5,375,000	$4,545,000
6	Inventory turnover					Net income			$900,000	$925,000
7	Number of days' sales in inventory	days		Dividends:
8	Ratio of fixed assets to long-term liabilities					On preferred stock			-45,000	-45,000
9	Ratio of liabilities to stockholders' equity					On common stock			-50,000	-50,000
10	Times interest earned					Increase in retained earnings			$805,000	$830,000
11	Asset turnover					Retained earnings, December 31			$6,180,000	$5,375,000
12	Return on total assets		%
13	Return on stockholders’ equity		%
14	Return on common stockholders’ equity		%
15	Earnings per share on common stock
16	Price-earnings rati0
17	Dividends per share of common stock
18	Dividend yield

Stargel Inc.					Stargel Inc.
Comparative Balance Sheet					Comparative Income Statement
December 31, 20Y2 and 20Y1					For the Years Ended December 31, 20Y2 and 20Y1
		20Y2	20Y1					20Y2	20Y1
Assets					Sales			$10,000,000	$9,400,000
Current assets:					Cost of goods sold			-5,350,000	-4,950,000
Cash		$500,000	$400,000		Gross profit			$4,650,000	$4,450,000
Marketable securities		1,010,000	1,000,000		Selling expenses			-$2,000,000	-$1,880,000
Accounts receivable (net)		740,000	510,000		Administrative expenses			-1,500,000	-1,410,000
Inventories		1,190,000	950,000		Total operating expenses			-$3,500,000	-$3,290,000
Prepaid expenses		250,000	229,000		Operating income			$1,150,000	$1,160,000
Total current assets		$3,690,000	$3,089,000		Other revenue and expense:
Long-term investments		2,350,000	2,300,000		Other revenue			150,000	140,000
Property, plant, and equipment (net)		3,740,000	3,366,000		Other expense (interest)			-170,000	-150,000
Total assets		$9,780,000	$8,755,000		Income before income tax expense			$1,130,000	$1,150,000
Liabilities					Income tax expense			-230,000	-225,000
Current liabilities		$900,000	$880,000		Net income			$900,000	$925,000
Long-term liabilities:
Mortgage note payable, 10%		$200,000	$0
Bonds payable, 10%		1,500,000	1,500,000
Total long-term liabilities		$1,700,000	$1,500,000
Total liabilities		$2,600,000	$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par		$500,000	$500,000
Common stock, $5 par		500,000	500,000
Retained earnings		6,180,000	5,375,000
Total stockholders' equity		$7,180,000	$6,375,000
Total liabilities and stockholders' equity		$9,780,000	$8,755,000

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