The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period. Comparative Balance Sheets
The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period. Comparative Balance Sheets
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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Calculate: a). The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period.
Comparative Balance Sheets | |||
As of December 31 | |||
Assets: | 20X3 | 20X2 | 20X1 |
Cash | $ 210,000 | $ 780,000 | $ 1,530,000 |
Accounts Receivable | 315,000 | 265,000 | 240,000 |
Inventory | 436,000 | 405,000 | 330,000 |
Prepaid Insurance | 15,000 | 18,000 | 21,000 |
Total Current Assets | $ 976,000 | $ 1,468,000 | $ 2,121,000 |
Land | 1,650,000 | 1,630,000 | 1,400,000 |
Buildings | 2,300,000 | 1,760,000 | 1,400,000 |
Less: Accumulated |
(560,000) | (490,000) | (440,000) |
Net Buildings | 1,740,000 | 1,270,000 | 960,000 |
Total Long-Term Assets | 3,390,000 | 2,900,000 | 2,360,000 |
Total Assets | 4,366,000 | 4,368,000 | 4,481,000 |
Liabilities & |
|||
Accounts Payable | 215,000 | 134,000 | 185,000 |
Salaries and Wages Payable | 63,000 | 49,000 | 40,000 |
Dividends Payable | 69,702 | 36,818 | 0 |
Notes Payable—Line of Credit | 356,000 | 205,000 | 98,000 |
Total Current Liabilities | 703,702 | 424,818 | 323,000 |
Notes Payable—Long-Term | 1,393,722 | 949,811 | 1,017,219 |
Bonds Payable | 1,000,000 | 1,000,000 | 1,000,000 |
Less: Discount on Bonds Payable | (41,583) | (48,317) | (54,603) |
Net Bonds Payable | 958,417 | 951,683 | 945,397 |
Total Long-term Liabilities | 2,352,139 | 1,901,494 | 1,962,617 |
Total Liabilities | 3,055,841 | 2,326,312 | 2,285,617 |
Contributed Capital | 1,500,000 | 1,500,000 | 1,500,000 |
1,449,159 | 1,080,688 | 730,383 | |
(1,639,000) | (539,000) | (35,000) | |
Total Stockholders’ Equity (SE) | 1,310,159 | 2,041,688 | 2,195,383 |
Total Liabilities & Stockholdler's Equity | $4,366,000 | $4,368,000 | $4,481,000 |
Firm and Industry Financial Ratios | ||||
20X3 | 20X2 | 20X3/20X2 Industry | ||
0.27 | 0.19 | 0.14 | ||
Dividend Payout | 0.18 | 0.15 | 0.10 | |
0.10 | 0.09 | 0.10 | ||
Return on Sales | 0.11 | 0.12 | 0.11 | |
Asset Turnover | 0.92 | 0.77 | 1.02 | |
Current Ratio | 1.39 | 3.46 | 2.35 | |
Quick Ratio | 0.75 | 2.46 | 1.75 | |
Debt/Assets | 0.70 | 0.53 | 0.35 | |
Accounts Receivable Days | 26.40 | 27.11 | 19.50 | |
Inventory Days | 60.91 | 70.23 | 41.50 | |
Accounts Payable Days | 25.59 | 31.73 | 28.40 | |
Summary: Cash Conversion Days | 61.71 | 65.61 | 32.60 |
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