QUESTION 6 CorrectMark 1.00 out of 1.00Remove flagEdit questionOn December 31, 2016, the accounts of Leuz Architect Services showed credit balances in its CommonStock and Retained Earnings accounts of $60,000 and $30,000, respectively. The company's stockissuances for 2017 totaled $12,000, and it paid $10,000 cash dividends in 2017. During 2017, the companyhad net income of $33,000.What is the total stockholders' equity for Leuz Architect Services at December 31, 2017?Select one:O A. $135,0000 B. $ 53,000O C.$72,000D. $125,000

First step is to be compute the ending balance of Retained earnings by adding the net income in the…

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Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.6EX: Current position analysis The following data were taken from the balance sheet of Nilo Company at...

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Changes in current operating assets and liabilities-indirect method Huluduey Corporations comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2016 Dec. 31, 2015 Accounts receivable 18,000 14,400 Inventory 34,800 29,700 Accounts payable 27,600 20,700 Dividends payable 8,400 10,800 Adjust net income of 160,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Nineteen 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
Changes in current operating assets and liabilities-indirect method Alpenrose Corporations comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2016 Dec. 31, 2015 Accounts receivable 27,000 32,400 Inventory 18,000 15,480 Accounts payable 16,200 14,220 Dividends payable 49,500 53,100 Adjust net income of 207,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

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