FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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The condensed financial statements of John Cully Company, for the years ended June 30, 2017 and 2016, are presented below.
Compute the following ratios for 2017 and 2016.
Return on assets. (Assets on 6/30/15 were $3,349.9.)
Return on common stockholders’ equity. (Stockholders’ equity on 6/30/15 was $1,795.9.)
Debt to assets ratio.
Times interest earned.
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic MattressYear-End Balance Sheet for 2016(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
22
Bank loans
$
22
Marketable securities
11
Accounts payable
80
Accounts receivable
111
Inventory
155
Total current assets
$
299
Total current liabilities
$
102
Fixed assets:
Gross investment
$
251
Long-term debt
26
Less depreciation
71
Net worth (equity and retained earnings)
351
Net fixed assets
$
180
Total assets
$
479
Total liabilities and net worth
$
479
Dynamic MattressYear-End Balance Sheet for 2017(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
32.0
Debt due within a year (bank…
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic MattressYear-End Balance Sheet for 2016(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
46
Bank loans
$
46
Marketable securities
23
Accounts payable
140
Accounts receivable
123
Inventory
215
Total current assets
$
407
Total current liabilities
$
186
Fixed assets:
Gross investment
$
263
Long-term debt
38
Less depreciation
83
Net worth (equity and retained earnings)
363
Net fixed assets
$
180
Total assets
$
587
Total liabilities and net worth
$
587
Dynamic MattressYear-End Balance Sheet for 2017(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
176.0
Debt due within a year (bank…
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