Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 3,400 $ 4,000 Accounts receivable (net) 21,700 23,400 Inventory 10,200 7,500 Land 20,100 25,600 Buildings 69,700 69,700 Accumulated depreciation—buildings (15,500 ) (10,700 ) Total $109,600 $119,500 Accounts payable $ 12,000 $ 31,400 Common stock 75,600 69,200 Retained earnings 22,000 18,900 Total $109,600 $119,500 Wiemers’s 2017 income statement included net sales of $107,000, cost of goods sold of $59,700, and net income of $15,100. Compute the following ratios for 2017. (Round Debt to assets ratio to 1 decimal place, e.g. 1.6, or 1.6% and all other answers to 2 decimal places, e.g. 1.64, or 1.64% .) (a) Current ratio enter your answer rounded to 2 decimal places :1 (b) Acid-test ratio enter your answer rounded to 2 decimal places :1 (c) Accounts receivable turnover enter your answer rounded to 2 decimal places times
Wiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 3,400 $ 4,000 Accounts receivable (net) 21,700 23,400 Inventory 10,200 7,500 Land 20,100 25,600 Buildings 69,700 69,700 Accumulated depreciation—buildings (15,500 ) (10,700 ) Total $109,600 $119,500 Accounts payable $ 12,000 $ 31,400 Common stock 75,600 69,200 Retained earnings 22,000 18,900 Total $109,600 $119,500 Wiemers’s 2017 income statement included net sales of $107,000, cost of goods sold of $59,700, and net income of $15,100. Compute the following ratios for 2017. (Round Debt to assets ratio to 1 decimal place, e.g. 1.6, or 1.6% and all other answers to 2 decimal places, e.g. 1.64, or 1.64% .) (a) Current ratio enter your answer rounded to 2 decimal places :1 (b) Acid-test ratio enter your answer rounded to 2 decimal places :1 (c) Accounts receivable turnover enter your answer rounded to 2 decimal places times
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 18E
Related questions
Question
Wiemers Corporation’s comparative balance sheets are presented below.
|
WIEMERS CORPORATION
Balance Sheets December 31 |
||||||
|---|---|---|---|---|---|---|
|
2017
|
2016
|
|||||
|
Cash
|
$ 3,400 | $ 4,000 | ||||
|
|
21,700 | 23,400 | ||||
|
Inventory
|
10,200 | 7,500 | ||||
|
Land
|
20,100 | 25,600 | ||||
|
Buildings
|
69,700 | 69,700 | ||||
|
|
(15,500 | ) | (10,700 | ) | ||
|
Total
|
$109,600 | $119,500 | ||||
|
Accounts payable
|
$ 12,000 | $ 31,400 | ||||
|
Common stock
|
75,600 | 69,200 | ||||
|
|
22,000 | 18,900 | ||||
|
Total
|
$109,600 | $119,500 |
Wiemers’s 2017 income statement included net sales of $107,000, cost of goods sold of $59,700, and net income of $15,100.
Compute the following ratios for 2017. (Round Debt to assets ratio to 1 decimal place, e.g. 1.6, or 1.6% and all other answers to 2 decimal places, e.g. 1.64, or 1.64% .)
| (a) |
|
enter your answer rounded to 2 decimal places | :1 | ||
|---|---|---|---|---|---|
| (b) |
Acid-test ratio
|
enter your answer rounded to 2 decimal places | :1 | ||
| (c) |
Accounts receivable turnover
|
enter your answer rounded to 2 decimal places | times | ||
| (d) |
Inventory turnover
|
enter your answer rounded to 2 decimal places | times | ||
| (e) |
Profit margin
|
enter your answer rounded to 2 decimal places | % | ||
| (f) |
Asset turnover
|
enter your answer rounded to 2 decimal places | times | ||
| (g) |
Return on assets
|
enter your answer rounded to 2 decimal places | % | ||
| (h) |
Return on common
|
enter your answer rounded to 2 decimal places | % | ||
| (i) |
Debt to assets ratio
|
enter your answer rounded to 1 decimal place | % |
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