PNG Company Comparative Balance SheetsUse the following comparative balance sheets, income statement, and additional information to answer questions (1) through (5). PNG Company Comparative Balance Sheets For the year ended December 31 20X1 20X0 Current assets Cash $157,000 $105,000 Accounts receivable 49,000 62,000 Inventory 53,700 36,100 Prepaid rent 11,400 8,300 Total current assets $271,100 $211,400 Long-term assets Investment in bonds $30,000 $14,800 Land 216,300 184,200 Equipment (net) 114,500 137,900 Total long-term assets $360,800 $336,900 Total assets $631,900 $548,300 Current liabilities Accounts payable $61,300 $52,700 Interest payable 4,900 8,500 Income tax payable 15,400 12,600 Total current liabilities $81,600 $73,800 Long-term liabilities Bonds payable $173,800 $205,400 Stockholders' equity Common stock $183,500 $165,200 Retained earnings 193,000 103,900 Total liabilities and equity $631,900 $548,300 PNG Company Income Statement For the year ended December 31, 20X1 Revenues Sales revenue $2,380,000 Cost of goods sold 1,240,000 Gross profit $1,140,000 Expenses Operating expenses $899,600 Depreciation expense 23,400 Interest expense 19,000 Income tax expense 61,000 Total expenses $1,003,000 Net income $137,000 Additional Information for PNG Co. in 20X1:1. All sales were on account.2. Earnings per share were $2.00.3. The closing stock price on 12/31/X1 was $15.40.4. PNG had 68,500 of its only class of (common) stock outstanding on 12/31/X1. 1. What was PNG Company's current ratio for the year 20X1? 7.74 3.32 2.47 2.66 2. What was PNG Company's debt to equity ratio for the year 20X1? 0.22 0.46 1.39 0.68 3. What was PNG Company's inventory turnover for the year 20X1? 5.30 times 27.62 times 34.35 times 3.05 times 4. What was PNG Company's return on equity for the year 20X1? 36.39% 74.66% 42.44% 274.82% 5. What was PNG Company's profit margin for the year 20X1? 12.02% 5.76% 36.39% 2.80%

PNG Company Comparative Balance SheetsUse the following comparative balance sheets, income statement, and additional information to answer questions (1) through (5). PNG Company Comparative Balance Sheets For the year ended December 31 20X1 20X0 Current assets Cash $157,000 $105,000 Accounts receivable 49,000 62,000 Inventory 53,700 36,100 Prepaid rent 11,400 8,300 Total current assets $271,100 $211,400 Long-term assets Investment in bonds $30,000 $14,800 Land 216,300 184,200 Equipment (net) 114,500 137,900 Total long-term assets $360,800 $336,900 Total assets $631,900 $548,300 Current liabilities Accounts payable $61,300 $52,700 Interest payable 4,900 8,500 Income tax payable 15,400 12,600 Total current liabilities $81,600 $73,800 Long-term liabilities Bonds payable $173,800 $205,400 Stockholders' equity Common stock $183,500 $165,200 Retained earnings 193,000 103,900 Total liabilities and equity $631,900 $548,300 PNG Company Income Statement For the year ended December 31, 20X1 Revenues Sales revenue $2,380,000 Cost of goods sold 1,240,000 Gross profit $1,140,000 Expenses Operating expenses $899,600 Depreciation expense 23,400 Interest expense 19,000 Income tax expense 61,000 Total expenses $1,003,000 Net income $137,000 Additional Information for PNG Co. in 20X1:1. All sales were on account.2. Earnings per share were $2.00.3. The closing stock price on 12/31/X1 was $15.40.4. PNG had 68,500 of its only class of (common) stock outstanding on 12/31/X1. 1. What was PNG Company's current ratio for the year 20X1? 7.74 3.32 2.47 2.66 2. What was PNG Company's debt to equity ratio for the year 20X1? 0.22 0.46 1.39 0.68 3. What was PNG Company's inventory turnover for the year 20X1? 5.30 times 27.62 times 34.35 times 3.05 times 4. What was PNG Company's return on equity for the year 20X1? 36.39% 74.66% 42.44% 274.82% 5. What was PNG Company's profit margin for the year 20X1? 12.02% 5.76% 36.39% 2.80%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4E

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PNG Company Comparative Balance Sheets
Use the following comparative balance sheets, income statement, and additional information to answer questions (1) through (5).

PNG Company
Comparative Balance Sheets
For the year ended December 31
	20X1	20X0
Current assets
Cash	$157,000	$105,000
Accounts receivable	49,000	62,000
Inventory	53,700	36,100
Prepaid rent	11,400	8,300
Total current assets	$271,100	$211,400
Long-term assets
Investment in bonds	$30,000	$14,800
Land	216,300	184,200
Equipment (net)	114,500	137,900
Total long-term assets	$360,800	$336,900
Total assets	$631,900	$548,300

Current liabilities
Accounts payable	$61,300	$52,700
Interest payable	4,900	8,500
Income tax payable	15,400	12,600
Total current liabilities	$81,600	$73,800
Long-term liabilities
Bonds payable	$173,800	$205,400
Stockholders' equity
Common stock	$183,500	$165,200
Retained earnings	193,000	103,900
Total liabilities and equity	$631,900	$548,300

PNG Company
Income Statement
For the year ended December 31, 20X1
Revenues
Sales revenue	$2,380,000
Cost of goods sold	1,240,000
Gross profit	$1,140,000
Expenses
Operating expenses	$899,600
Depreciation expense	23,400
Interest expense	19,000
Income tax expense	61,000
Total expenses	$1,003,000
Net income	$137,000

Additional Information for PNG Co. in 20X1:
1. All sales were on account.
2. Earnings per share were $2.00.
3. The closing stock price on 12/31/X1 was $15.40.
4. PNG had 68,500 of its only class of (common) stock outstanding on 12/31/X1.

1. What was PNG Company's current ratio for the year 20X1?

7.74

3.32

2.47

2.66

2. What was PNG Company's debt to equity ratio for the year 20X1?

0.22

0.46

1.39

0.68

3. What was PNG Company's inventory turnover for the year 20X1?

5.30 times

27.62 times

34.35 times

3.05 times

4. What was PNG Company's return on equity for the year 20X1?

36.39%

74.66%

42.44%

274.82%

5. What was PNG Company's profit margin for the year 20X1?

12.02%

5.76%

36.39%

2.80%

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