The comparative statements of Corbin Company are presented below.CORBIN COMPANYIncome StatementFor the Years Ended December 31 2017 2016Net sales (all on account) $600,500 $520,200 Expenses Cost of goods sold 414,600 354,200 Selling and administrative 119,900 113,300 Interest expense 8,200 5,100 Income tax expense 17,100 14,700 Total expenses 559,800 487,300 Net income $ 40,700 $ 32,900 CORBIN COMPANYBalance SheetsDecember 31Assets 2017 2016Current assets Cash $ 21,100 $ 17,600 Short-term investments 17,100 15,200 Accounts receivable (net) 86,100 73,000 Inventory 89,400 70,100 Total current assets 213,700 175,900 Plant assets (net) 423,800 383,200 Total assets $637,500 $559,100 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $121,600 $110,200 Income taxes payable 22,500 20,900 Total current liabilities 144,100 131,100 Long-term liabilities Bonds payable 120,600 79,800 Total liabilities 264,700 210,900 Stockholders’ equity Common stock ($5 par) 151,200 151,200 Retained earnings 221,600 197,000 Total stockholders’ equity 372,800 348,200 Total liabilities and stockholders’ equity $637,500 $559,100 Additional data:The common stock recently sold at $19.97 per share.Compute the following ratios for 2017. (Round Acid-test ratio and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)(a) Current ratio. :1(b) Acid-test ratio. :1(c) Accounts receivable turnover. times(d) Inventory turnover. times(e) Profit margin. %(f) Asset turnover. times(g) Return on assets. %(h) Return on common stockholders’ equity. %(i) Earnings per share. $ (j) Price-earnings ratio. times(k) Payout ratio. %(l) Debt to assets ratio. %(m) Times interest earned.

Current ratio is the ratio which show whether sufficient current assets are backed in order to meet…

Answered: The comparative statements of Corbin…

Financial Accounting

15th Edition

ISBN:9781337272124

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

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

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1FSA: Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at...

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The comparative statements of Corbin Company are presented below.

CORBIN COMPANY Income Statement For the Years Ended December 31
	2017	2016
Net sales (all on account)	$600,500		$520,200
Expenses
Cost of goods sold	414,600		354,200
Selling and administrative	119,900		113,300
Interest expense	8,200		5,100
Income tax expense	17,100		14,700
Total expenses	559,800		487,300
Net income	$ 40,700		$ 32,900

CORBIN COMPANY Balance Sheets December 31
Assets	2017	2016
Current assets
Cash	$ 21,100		$ 17,600
Short-term investments	17,100		15,200
Accounts receivable (net)	86,100		73,000
Inventory	89,400		70,100
Total current assets	213,700		175,900
Plant assets (net)	423,800		383,200
Total assets	$637,500		$559,100
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$121,600		$110,200
Income taxes payable	22,500		20,900
Total current liabilities	144,100		131,100
Long-term liabilities
Bonds payable	120,600		79,800
Total liabilities	264,700		210,900
Stockholders’ equity
Common stock ($5 par)	151,200		151,200
Retained earnings	221,600		197,000
Total stockholders’ equity	372,800		348,200
Total liabilities and stockholders’ equity	$637,500		$559,100

Additional data:

The common stock recently sold at $19.97 per share.

Compute the following ratios for 2017. (Round Acid-test ratio and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

(a)	Current ratio.		:1
(b)	Acid-test ratio.		:1
(c)	Accounts receivable turnover.		times
(d)	Inventory turnover.		times
(e)	Profit margin.		%
(f)	Asset turnover.		times
(g)	Return on assets.		%
(h)	Return on common stockholders’ equity.		%
(i)	Earnings per share.	$
(j)	Price-earnings ratio.		times
(k)	Payout ratio.		%
(l)	Debt to assets ratio.		%
(m)	Times interest earned.

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