URRENT RATIO 2.8 2.5 2.0 CID TEST RATIO 0.7 0.9 1.2 CCOUNTS RECEIVABLE TURNOVER 8.6 9.5 10.4 VVENTORY TURNOVER 5.0 5.7 6.8 130.0 2.50 $ 5%| 40% 118.0 2.50 $ ALES TREND 100.0 DIVIDENDS PAID PER SHARE 2.50 IVIDENDS YIELD RATIO 4% 3% IVIDEND PAYOUT RATIO 50% 60% ETURN ON TOTAL ASSETS ETURN ON COMMON STOCKHOLDERS' EQUITY 13.0% 11.8% 10.4% 16.2% 14.5% 9.0% %24

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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3MC: Prince Corporations accounts provided the following information at December 31, 2019: What should be...
icon
Related questions
Question

Based on the balance sheet, Is the market price of the company’s stock going up or down? iS IT WORTH TO INVEST IN? EXPLAIN

YR 3 (2021) YR 2 (2020) YR 1 (2019)
CURRENT RATIO
2.8
2.5
2.0
ACID TEST RATIO
0.7
0.9
1.2
ACCOUNTS RECEIVABLE TURNOVER
8.6
9.5
10.4
INVENTORY TURNOVER
5.0
5.7
6.8
SALES TREND
130.0
118.0
100.0
2.50 $
2.50 $
4%
DIVIDENDS PAID PER SHARE
$
2.50
DIVIDENDS YIELD RATIO
5%
3%
DIVIDEND PAYOUT RATIO
40%
50%
60%
RETURN ON TOTAL ASSETS
13.0%
11.8%
10.4%
RETURN ON COMMON STOCKHOLDERS' EQUITY
16.2%
14.5%
9.0%
Transcribed Image Text:YR 3 (2021) YR 2 (2020) YR 1 (2019) CURRENT RATIO 2.8 2.5 2.0 ACID TEST RATIO 0.7 0.9 1.2 ACCOUNTS RECEIVABLE TURNOVER 8.6 9.5 10.4 INVENTORY TURNOVER 5.0 5.7 6.8 SALES TREND 130.0 118.0 100.0 2.50 $ 2.50 $ 4% DIVIDENDS PAID PER SHARE $ 2.50 DIVIDENDS YIELD RATIO 5% 3% DIVIDEND PAYOUT RATIO 40% 50% 60% RETURN ON TOTAL ASSETS 13.0% 11.8% 10.4% RETURN ON COMMON STOCKHOLDERS' EQUITY 16.2% 14.5% 9.0%
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning