14.6A Repayment ôf16,000Dividends paidNet cash provided by financing activities$410,000Net increase in cash during the yeara. Explain how the interest expense shown in the income statement could be $84,000, when ainterest payment appearing in the statement of cash flows is only $79,000.Instructionsb. Compute the following (round to one decimal place):1. Current ratio2. Quick ratio3. Working capital4. Debt ratioс.Comment on these measurements and evaluate Dickson, Inc.'s short-term debt-paying ability.d. Compute the following ratios (assume that the year-end amounts of total assets and total stock-holders' equity also represent the average amounts throughout the year).1. Return on assets2. Return on equityComment on the company's performance under these measurements. Explain why the returnon assets and return on equity are so different.е.f. Discuss (1) the apparent safety of long-term creditors' claims and (2) the prospects for Dickson, Inc., continuing its dividend payments at the present level. Shown as follows is selected information from the financial statements of Dickson, Inc., a retailChapter 14 Financial Statement Analysisfurniture store.sis2430,000From the balance sheet:150,000Cash200,000Accounts receivable500,000Inventory150,000Plant assets (net of accumulated depreciation)Current liabilities300,000Total stockholders' equity1,000,000Total assetsFrom the income statement:$1,500,000Net sales1,080,000Cost of goods sold315,000Operating expenses84,000Interest expense6,000Income tax expense15,000Net incomeFrom the statement of cash flows:Net cash provided by operating activities(including interest paid of $79,000)$440,000Net cash used in investing activities.(46,000)Financing activities:Amounts borrowed$ 50,000Repayment of amounts borrowed(14,000)Dividends paid(20,000)Net cash provided by financing activitiesNet increase in cash during the year16,0002$10,000structionsExplain how the interest expensę shown in tlinterest navmant

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

$4 30,000 From the balance sheet: 150,000 Cash ... 200,000 Accounts receivable . 500,000 Inventory Plant assets (net of accumulated depreciation) Current liabilities.... ... .. 150,000 300,000 Total stockholders' equity. 1,000,000 Total assets From the income statement: $1,500,000 Net sales 1,080,000 Cost of goods sold ... 315,000 Operating expenses .. 84,000 Interest expense... 6,000 Income tax expense 15,000 Net income .... From the statement of cash flows: Net cash provided by operating activities (including interest paid of $79,000) .. $ 40,000 Net cash used in investing activities (46,000) Financing activities: Amounts borrowed $ 50,000 ... .... Repayment of amounts borrowed... Dividends paid.. Net cash provided by financing activities ... Net increase in cash during the year (14,000) (20,000) 16,000 2. 10,000 ... ....

$4 30,000 From the balance sheet: 150,000 Cash ... 200,000 Accounts receivable . 500,000 Inventory Plant assets (net of accumulated depreciation) Current liabilities.... ... .. 150,000 300,000 Total stockholders' equity. 1,000,000 Total assets From the income statement: $1,500,000 Net sales 1,080,000 Cost of goods sold ... 315,000 Operating expenses .. 84,000 Interest expense... 6,000 Income tax expense 15,000 Net income .... From the statement of cash flows: Net cash provided by operating activities (including interest paid of $79,000) .. $ 40,000 Net cash used in investing activities (46,000) Financing activities: Amounts borrowed $ 50,000 ... .... Repayment of amounts borrowed... Dividends paid.. Net cash provided by financing activities ... Net increase in cash during the year (14,000) (20,000) 16,000 2. 10,000 ... ....

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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