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The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2014. Instructions Determine the following measures for 2014, rounding to one decimal place: 1. a.Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days' sales in receivables f. Inventory turnover g. Number of days' sales in inventory h. Ratio of fixed assets to long-term liabilities i. Ratio of liabilities to stockholders’ equity j. Number of times interest charges are earned k. Number of times preferred dividends are earned 2. a. Ratio of net sales to assets b. Rate earned on total assets c. Rate earned on stockholders' equity d. Rate earned on common stockholders' equity e. Earnings per share on common stock f. Price-earnings ratio g. Dividends per share of common stock h. Dividend yield

The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2014. Instructions Determine the following measures for 2014, rounding to one decimal place: 1. a.Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days' sales in receivables f. Inventory turnover g. Number of days' sales in inventory h. Ratio of fixed assets to long-term liabilities i. Ratio of liabilities to stockholders’ equity j. Number of times interest charges are earned k. Number of times preferred dividends are earned 2. a. Ratio of net sales to assets b. Rate earned on total assets c. Rate earned on stockholders' equity d. Rate earned on common stockholders' equity e. Earnings per share on common stock f. Price-earnings ratio g. Dividends per share of common stock h. Dividend yield

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter11: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 11.8BPE: Earnings per share Financial statement data for the years ended December 31 for Black Bull Inc....
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The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2014.

Instructions
Determine the following measures for 2014, rounding to one decimal place:
1. a.Working capital

b. Current ratio

c. Quick ratio
d. Accounts receivable turnover
e. Number of days' sales in receivables
f. Inventory turnover
g. Number of days' sales in inventory
h. Ratio of fixed assets to long-term liabilities
i. Ratio of liabilities to stockholders’ equity
j. Number of times interest charges are earned
k. Number of times preferred dividends are earned
2. a. Ratio of net sales to assets
b. Rate earned on total assets
c. Rate earned on stockholders' equity
d. Rate earned on common stockholders' equity
e. Earnings per share on common stock
f. Price-earnings ratio
g. Dividends per share of common stock
h. Dividend yield

Current liabilities... Long-term liabilities: Mortgage note payable, 8%, due 2019.. Bonds payable, 10%, due 2015. Total long-term liabilities. Total liabilities .... $ 440,000 $ 400,000 $ 100,000 1,000,000 $1,100,000 $1,540,000 1,000,000 $1,000,000 $1,400,000 Stockholders' Equity Preferred $0.75 stock, $10 par. Common stock, $10 par..... Retained earnings.... Total stockholders' equity. Total liabilities and stockholders' equity.. $ 200,000 100,000 2,930,000 $3,230,000 $4,770,000 $ 200,000 100,000 2,655,000 $2,955,000 $4,355,000
Transcribed Image Text:Current liabilities... Long-term liabilities: Mortgage note payable, 8%, due 2019.. Bonds payable, 10%, due 2015. Total long-term liabilities. Total liabilities .... $ 440,000 $ 400,000 $ 100,000 1,000,000 $1,100,000 $1,540,000 1,000,000 $1,000,000 $1,400,000 Stockholders' Equity Preferred $0.75 stock, $10 par. Common stock, $10 par..... Retained earnings.... Total stockholders' equity. Total liabilities and stockholders' equity.. $ 200,000 100,000 2,930,000 $3,230,000 $4,770,000 $ 200,000 100,000 2,655,000 $2,955,000 $4,355,000
Bettancort Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Retained earnings, January 1. Add net income for year. Total .. $2,655,000 $2,400,000 280,000 300,000 $2,955,000 $2,680,000 Deduct dividends: On preferred stock. On common stock.. Total..... Retained earnings, December 31 $ 15,000 $ 15,000 10,000 $ 25,000 $2,930,000 10,000 $ 25,000 $2,655,000 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 $1,212,000 12,000 Sales (all on account). $1,010,000 10,000 $1,000,000 Sales returns and allowances. Net sales..... Cost of goods sold.. Gross profit..... Selling expenses Administrative expenses. Total operating expenses Income from operations Other income.. $1,200,000 500,000 $ 700,000 $ 240,000 180,000 $ 420,000 $ 280,000 166,000 $ 446,000 475,000 $ 525,000 $ 200,000 150,000 $ 350,000 $ 175,000 225,000 $ 400,000 60,000 $ 340,000 60,000 $ 280,000 Other expense (interest) . 66,000 $ 380,000 80,000 $ 300,000 Income before income tax Income tax expense Net income Bettancort Inc. Comparative Balance Sheet December 31, 2014 and 2013 Dec. 31, 2014 Dec. 31, 2013 Assets Current assets: Cash ..... $ 450,000 $ 400,000 Marketable securities.. 300,000 130,000 260,000 110,000 Accounts receivable (net) Inventories ... 67,000 58,000 Prepaid expenses Total current assets 153,000 $1,100,000 139,000 $ 967,000 Long-term investments. Property, plant, and equipment (net) Total assets ... 2,350,000 1,320,000 2,200,000 1,188,000 $4,355,000 $4,770,000
Transcribed Image Text:Bettancort Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Retained earnings, January 1. Add net income for year. Total .. $2,655,000 $2,400,000 280,000 300,000 $2,955,000 $2,680,000 Deduct dividends: On preferred stock. On common stock.. Total..... Retained earnings, December 31 $ 15,000 $ 15,000 10,000 $ 25,000 $2,930,000 10,000 $ 25,000 $2,655,000 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 $1,212,000 12,000 Sales (all on account). $1,010,000 10,000 $1,000,000 Sales returns and allowances. Net sales..... Cost of goods sold.. Gross profit..... Selling expenses Administrative expenses. Total operating expenses Income from operations Other income.. $1,200,000 500,000 $ 700,000 $ 240,000 180,000 $ 420,000 $ 280,000 166,000 $ 446,000 475,000 $ 525,000 $ 200,000 150,000 $ 350,000 $ 175,000 225,000 $ 400,000 60,000 $ 340,000 60,000 $ 280,000 Other expense (interest) . 66,000 $ 380,000 80,000 $ 300,000 Income before income tax Income tax expense Net income Bettancort Inc. Comparative Balance Sheet December 31, 2014 and 2013 Dec. 31, 2014 Dec. 31, 2013 Assets Current assets: Cash ..... $ 450,000 $ 400,000 Marketable securities.. 300,000 130,000 260,000 110,000 Accounts receivable (net) Inventories ... 67,000 58,000 Prepaid expenses Total current assets 153,000 $1,100,000 139,000 $ 967,000 Long-term investments. Property, plant, and equipment (net) Total assets ... 2,350,000 1,320,000 2,200,000 1,188,000 $4,355,000 $4,770,000
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