I uploaded pictures for problem 17-4B. I am trying to figure out the: 8. Ratio of Fixed Assets to long-term Liabilities 9. Ratio of Liabilities to Stockholders Equity 10. Times interest earned
I uploaded pictures for problem 17-4B. I am trying to figure out the: 8. Ratio of Fixed Assets to long-term Liabilities 9. Ratio of Liabilities to Stockholders Equity 10. Times interest earned
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.19P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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Question
I uploaded pictures for problem 17-4B.
I am trying to figure out the:
8. Ratio of Fixed Assets to long-term Liabilities
9. Ratio of Liabilities to
10. Times interest earned
![percentages, except for per-share amounts:
877
Stargel Inc.
Comparative Income Statement
ar the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Sales
$10,000,000
$9,400,000
Cost of goods sold..
Gross profit.
5,350,000
$ 4,650,000
$ 2,000,000
4,950,000
$4,450,000
Selling expenses
Administrative expenses.
$1,880,000
1,500,000
1,410,000
Total operating expenses
Income from operations
Other revenue...
$ 3,500,000
$ 1,150,000
$3,290,000
$1,160,000
150,000
140,000
$ 1,300,000
$1,300,000
Other expense (interest)
Income before income tax
170,000
150,000
$1,150,000
$ 1,130,000
Income tax expense.
230,000
225,000
Net income
$ 9.00,000
$ 925,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Υ2
20Υ1
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
Total current assets..
250,000
229,000
$3,690,000
$3,089,000
Long-term investments..
Property, plant, and equipment (net)
2,350,000
2,300,000
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%.
Bonds payable, 10%..
Total long-term liabilities
Total liabilities
$ 200,000
$
01
1,500,000
1,500,000
$1,700,000
$1,500,000
$2,600,000
$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par...
Common stock, $5 par.
Retained earnings..
$ 500,000
$ 500,000
500,000
500,000
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a987c34-352b-4877-bc0d-85e27e069a4c%2F6eb25f71-688e-4b24-bc08-0ddbe96246a9%2Fzcqal1t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:percentages, except for per-share amounts:
877
Stargel Inc.
Comparative Income Statement
ar the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Sales
$10,000,000
$9,400,000
Cost of goods sold..
Gross profit.
5,350,000
$ 4,650,000
$ 2,000,000
4,950,000
$4,450,000
Selling expenses
Administrative expenses.
$1,880,000
1,500,000
1,410,000
Total operating expenses
Income from operations
Other revenue...
$ 3,500,000
$ 1,150,000
$3,290,000
$1,160,000
150,000
140,000
$ 1,300,000
$1,300,000
Other expense (interest)
Income before income tax
170,000
150,000
$1,150,000
$ 1,130,000
Income tax expense.
230,000
225,000
Net income
$ 9.00,000
$ 925,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Υ2
20Υ1
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
Total current assets..
250,000
229,000
$3,690,000
$3,089,000
Long-term investments..
Property, plant, and equipment (net)
2,350,000
2,300,000
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%.
Bonds payable, 10%..
Total long-term liabilities
Total liabilities
$ 200,000
$
01
1,500,000
1,500,000
$1,700,000
$1,500,000
$2,600,000
$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par...
Common stock, $5 par.
Retained earnings..
$ 500,000
$ 500,000
500,000
500,000
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
![PR 17-4B 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
925,000
Total...
$6,275,000
$5,470,000
Dividends:
Preferred stock dividends
$ 45,000
Common stock dividends
Total dividends
Retained earnings, December 31
$6,180,000
$5,375,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a987c34-352b-4877-bc0d-85e27e069a4c%2F6eb25f71-688e-4b24-bc08-0ddbe96246a9%2Fdkynl3d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PR 17-4B 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
925,000
Total...
$6,275,000
$5,470,000
Dividends:
Preferred stock dividends
$ 45,000
Common stock dividends
Total dividends
Retained earnings, December 31
$6,180,000
$5,375,000
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