I uploaded pictures for problem 17-4B. I am trying to figure out the 1. Working Capital 2. Current Ratio 3. Quick Ratio
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I uploaded pictures for problem 17-4B.
I am trying to figure out the
1.
2.
3. Quick Ratio
8. Ratio of Fixed Assets to long-term Liabilities
9. Ratio of Liabilities to
10. Times interest earned
11. Asset Turnover
13. Return on Stockholders Equity
14. Return on Common Stockhholders Equity
15. Earnings per share on Common stock
16. Price Earnings Ratio
17. Dividends per share of Common Stock
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- Measures of liquidity, solvency and profitability The comparative financial .statements of Stargel Inc. are as follows. The market price of Stargel common stock was 119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31,20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 5,375,000 4,545,000 Net income 900,000 925,000 Total 6,275,000 5,470,000 Dividends: On preferred stock 45,000 45,000 On common stock 50,000 50,000 Total dividends 95,000 95,000 Retained earnings, December 31 6,180,000 5,375,000 Sales 10,000,000 9,400,000 Cost of goods sold 5,350,000 4,950,000 Gross profit 4,650,000 54,450,000 Selling expenses 2,000,000 1,880,000 Administrative expenses 1,500,000 1,410,000 Total operating expenses 3,500,000 3,290,000 Income from operations 1,150,000 1,160,000 Other income 150,000 140,000 1,300,000 1,300,000 Other expense (interest) 170,000 150,000 Income before income tax 1,130,000 1,150,000 Income tax expense 230,000 225,000 Net income 900,000 925,000 Stargel Inc Comparative Balance Sheet December 31,20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: 500,000 400,000 Marketable securities 1,010,000 1,000,000 Accounts receivable (net) 740,000 510,000 Inventories 1,190,000 950,000 Prepaid expenses 250,000 229,000 Total current assets 3,690,000 3,089,000 Long term investments 2,350,000 2,300,000 Property, plant, and equipment (net) 3,740,000 3,366,000 Total assets 9,780,000 8,755,000 Liabilities Current liabilities 900,000 880,000 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 58,755,000 Instructions Determine the following measures for 20Y2 (round to one decimal place including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 5. Quick ratio 4. Accounts receivable turnover 5. Number of days- sales in receivables 6. Inventory turnover 7. Number of days' sales in inventor) 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 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 ratio 17. Dividends per share of common stock 18. Dividend yieldMeasures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31,20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 3,704,000 3,264,000 Net income 600,000 550,000 Total 4,304,000 3,814,000 Dividends: On preferred stock 10,000 10,000 On common stock 100,000 100,000 Total dividends 110,000 110,000 Retained earnings, December 31 4,194,000 3,704,000 Sales 10,850,000 10,000,000 Cost of goods sold 6,000,000 5,450,000 Gross profit 4,850,000 4,550,000 Selling expenses 2,170,000 2,000,000 Administrative expenses 1,627,500 1,500,000 Total operating expenses 3,797,500 3,500,000 Income from operations 1,052,500 1,050,000 Other income 99,500 20,000 1,152,000 1,070,000 Other expense (interest) 132,000 120,000 Income before income tax 1,020,000 950,000 Income tax expense 420,000 400,000 Net income 600,000 550,000 Marshall Inc. Comparative Balance Sheet December 31,20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash 1,050,000 950,000 Marketable securities 301,000 420,000 Accounts receivable (net) 585,000 500,000 Inventories 420,000 380,000 Prepaid expenses 108,000 20,000 Total current assets 2,464,000 2,270,000 Long-term investments 800,000 800,000 Property, plant, and equipment (net) 5,760,000 5,184,000 Total assets 9,024,000 8,254,000 Liabilities Current liabilities 880,000 800,000 Long-term liabilities: Mortgage note payable. 6% 200,000 0 Bonds payable. 4%, 3,000,000 3,000,000 Total long term liabilities 3,200,000 3,000,000 Total liabilities 4,080,000 3,800,000 Stockholders' Equity Preferred 4% stock, 5 par 250,000 250,000 Common stock. 5 par 500,000 500,000 Retained earnings 4,194,000 3,704,000 Total stockholders' equity 4,944,000 4,454,000 Total liabilities and stockholders' equity 9,024,000 8,254,000 Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 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 ratio 17. Dividends per share of common stock 18. Dividend yieldNineteen measures of solvency and profitability The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel Inc. common stock was 119.70 on December 31, 2016. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Retained earnings, January 1................ 5,375,000 4,545,000 Add net income for year......................... 900,000 925,000 Total..................................... 6,275,000 5,470,000 Deduct dividends: On preferred stock............................................. 45,000 45,000 On common stock.............................................. 50,000 50,000 Total........................................................ 95,0000 95,000 Retained earnings, December 3................................... 6,180,000 5,375,000 Stargel Inc. Comparative Income Statement For the Year Ended December 31, 2016 and 2015 2016 2015 Sales..................... 10,000,000 9,400,000 Cost of goods sold......... 5,350,000 4,950,000 Gross profit............... 4,650,000 4,450,000 Selling expenses.......... 2,000,000 1,080,000 Administrative expenses... 1,500.000 1,410,000 Total operating expenses 3,500,000 3,290,000 Income from operations ... 1,150,000 1,160,000 Other income............. 150,000 140,000 1,300,000 1,300,000 Other expense (interest). 170,000 150,000 Income before income tax 1,130,000 1,150,000 Income tax expense....... 230,000 225,000 Net income............... 900,000 925,000 Stargel Inc. Comparative Income Statement For the Year Ended December 31, 2016 and 2015 Dec.31, 2016 Dec. 31, 2015 Assets Current Assets: Cash.................................... 500,000 400,000 Marketable securities.................... 1,010,000 1,000,000 Accounts receivable (net)................. 740,000 510,000 Inventories.............................. 1,190000 950,000 Prepaid expenses........................ 250,000 229,000 Total current assets..................... 3,690,000 3,089,000 Long-term investments.................... 2,350,000 2,300,000 Property, plant and equipment (net)....... 3,740,000 3,366,000 Total assets............................... 9,780,000 8,755,000 Liabilities Current liabilities.......................... 900,000 880,000 Long-term liabilities: Mortgage note payable, 8.8%, due 2021... 200,000 0 Bonds payable, 9%, due 2017............. 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 stock 0.90, 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 Instructions Determine the following measures for 2016, rounding to one decimal place, except per share amounts, which should be rounded to the nearest penny: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days salts in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to .stockholders' equity 10. Number of times interest charges are earned 11. Number of times preferred dividends are earned 12. Ratio of sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield
- Profitability ratios The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: The 2016 net income was 372,000, and the 2015 net income was 492,000. No dividends on common stock were declared between 2014 and 2016. a. Determine the rate earned on total assets, the rate earned on stockholders equity, and the rate earned on common stockholders equity for the years 2015 and 2016. Round to one decimal place. b. What conclusions can be drawn from these data as to the companys profitability?Measures of liquidity, solvency and profitability The comparative financial statements of Stargel Inc. are as follows. The market price of common stock was 119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1............. 5,375,000 4,545,000 Net income............................. 900,000 925.000 Total................................ 6,275,000 5,470,000 Dividends: Preferred stock dividends............. 45,000 45,000 Common stock dividends............. 50,000 50,000 Total dividends.................... 95,000 95,000 Retained earnings, December 31......... 6,180,000 5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales..................... 10,000,000 9,400,000 Cost of goods sold......... 5,350,000 4,950,000 Gross profit............... 4,650,000 4,450,000 Selling expenses.......... 2,000,000 1,880,000 Administrative expenses....... 1,500,000 1,410,000 Total operating expenses 3,500,000 3,290,000 Income from operations. 1,150.000 1,160,000 Other revenue............ 150,000 140,000 1,300,000 1,300,000 Other expense (interest).. 170,000 150,000 Income before income tax.. 1,130,000 1,150,000 Income tax expense....... 230,000 225,000 Net income............... 900,000 925,000 Stargel Inc. Comparative Balance Sheet December 31,20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash.......................................................... 500,000 400,000 Marketable securities........................................... 1,010,000 1,000,000 Accounts receivable (net)....................................... 740,000 510,000 Inventories.................................................... 1,190,000 950,000 Prepaid expenses.............................................. 250,000 229,000 Total current assets.......................................... 3,690,000 3,089,000 Long term investments............................................ 2,350,000 2,300,000 Property, plant, and equipment (net)............................... 3,740,000 3,366,000 Total assets....................................................... 9,780.000 8,755,000 Liabilities Current liabilities.................................................. 900,000 880,000 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 Instructions Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 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 ratio 17. Dividends per share of common stock 18. Dividend yield