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Lisa Inc.'s balance sheet appears below: Lisa Inc. Statement of Financial Position December 31 (in thousands) Year 2 Year 1 Cash $ 30 $ 25 Marketable securities. Accounts receivable (net) Inventories... Prepaid expenses Total current assets Land.. Building (net) Equipment (net). Total long-term assets. Total assets 20 15 45 30 30 20 140 125 60 15 170 155 80 90 95 330 $500 100 315 $455 Accounts payable Accrued interest Short-term notes payable. $ 47 15 23 85 $ 28 15 12 55 10 Total current liabilities... Long-term notes payable Bonds payable. Total long-term liabilities Total liabilities 10 15 25 110 100 15 25 80 100 Preferred stock $(100 par value, 5%) Common Stock S(10 par value) Additional paid-in capital--common stock. Retained earnings... Total stockholders equity Total liabilities & equity. 150 150 75 75 65 390 $500 50 375 $455 The company's sales for the year were $300 thousand, its cost of goods sold was $220 thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends for the year were $5 thousand. Prepare the following financial ratios to analyze the Balance Sheet of Lisa Inc. 1. Acid test ratio. 2. Accounts receivable turnover 3. Inventory turnover

Lisa Inc.'s balance sheet appears below: Lisa Inc. Statement of Financial Position December 31 (in thousands) Year 2 Year 1 Cash $ 30 $ 25 Marketable securities. Accounts receivable (net) Inventories... Prepaid expenses Total current assets Land.. Building (net) Equipment (net). Total long-term assets. Total assets 20 15 45 30 30 20 140 125 60 15 170 155 80 90 95 330 $500 100 315 $455 Accounts payable Accrued interest Short-term notes payable. $ 47 15 23 85 $ 28 15 12 55 10 Total current liabilities... Long-term notes payable Bonds payable. Total long-term liabilities Total liabilities 10 15 25 110 100 15 25 80 100 Preferred stock $(100 par value, 5%) Common Stock S(10 par value) Additional paid-in capital--common stock. Retained earnings... Total stockholders equity Total liabilities & equity. 150 150 75 75 65 390 $500 50 375 $455 The company's sales for the year were $300 thousand, its cost of goods sold was $220 thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends for the year were $5 thousand. Prepare the following financial ratios to analyze the Balance Sheet of Lisa Inc. 1. Acid test ratio. 2. Accounts receivable turnover 3. Inventory turnover

Intermediate Accounting: Reporting And Analysis
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
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...
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Lisa Inc.'s balance sheet appears below: Lisa Inc. Statement of Financial Position December 31 (in thousands) Year 2 Year 1 Cash $ 30 $ 25 Marketable securities 20 15 Accounts receivable (net) 45 30 Inventories.... Prepaid expenses Total current assets Land Building (net) Equipment (net).. Total long-term assets Total assets 50 20 140 125 60 15 170 155 80 90 95 330 $500 100 315 $455 $ 47 15 23 85 $ 28 Accounts payable Accrued interest Short-term notes payable 15 12 55 Total current liabilities. Long-term notes payable Bonds payable Total long-term liabilities Total liabilities 10 10 15 25 110 15 25 80 Preferred stock $(100 par value, 5%) Common Stock S(10 par value) Additional paid-in capital--common stock Retained earnings.... Total stockholders' equity Total liabilities & equity. 100 100 150 150 75 75 65 390 $500 50 375 $455 The company's sales for the year were $300 thousand, its cost of goods sold was $220 thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends for the year were $5 thousand. Prepare the following financial ratios to analyze the Balance Sheet of Lisa Inc. 1. Acid test ratio. 2. Accounts receivable turnover 3. Inventory turnover 4. Return on Equity 5. Return on Assets 6. Debt to equity ratio
Transcribed Image Text:Lisa Inc.'s balance sheet appears below: Lisa Inc. Statement of Financial Position December 31 (in thousands) Year 2 Year 1 Cash $ 30 $ 25 Marketable securities 20 15 Accounts receivable (net) 45 30 Inventories.... Prepaid expenses Total current assets Land Building (net) Equipment (net).. Total long-term assets Total assets 50 20 140 125 60 15 170 155 80 90 95 330 $500 100 315 $455 $ 47 15 23 85 $ 28 Accounts payable Accrued interest Short-term notes payable 15 12 55 Total current liabilities. Long-term notes payable Bonds payable Total long-term liabilities Total liabilities 10 10 15 25 110 15 25 80 Preferred stock $(100 par value, 5%) Common Stock S(10 par value) Additional paid-in capital--common stock Retained earnings.... Total stockholders' equity Total liabilities & equity. 100 100 150 150 75 75 65 390 $500 50 375 $455 The company's sales for the year were $300 thousand, its cost of goods sold was $220 thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends for the year were $5 thousand. Prepare the following financial ratios to analyze the Balance Sheet of Lisa Inc. 1. Acid test ratio. 2. Accounts receivable turnover 3. Inventory turnover 4. Return on Equity 5. Return on Assets 6. Debt to equity ratio
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