The comparative statements of Larker Tool Company are presented below. All sales were on account. Instructions Compute
Question:
The comparative statements of Larker Tool Company are presented below.
All sales were on account.
Instructions
Compute the following ratios for 2013. (Weighted-average common shares in 2013 were 57,000.)
(a) Earnings per share.
(b) Return on common stockholders? equity.
(c) Return on assets.
(d) Current.
(e) Acid-test.
(f) Receivables turnover.
(g) Inventory turnover.
(h) Times interest earned.
(i) Asset turnover.
(j) Debt to total assets.
Transcribed Image Text:
LARKER TOOL COMPANY Income Statement For the Years Ended December 31 2013 2012 $1,818,500 $1.750,500 Net sales Cost of goods sold 1,011.500 996,000 Gross profit Selling and administrative expense 807,000 754.500 516,000 479,000 Income from operations Other expenses and losses Interest expense 291.000 275,500 18,000 14,000 Income before income taxes 273,000 261,500 Income tax expense 81.000 77.000 $ 192.000 $ 184,500 Net income LARKER TOOL COMPANY Balance Sheets December 31 2013 Assets 2012 Current assets $ 60,100 $ 64,200 Cash Short-term investments 69,000 50,000 Accounts receivable (net) 117.800 102,800 Inventory 115,500 123,000 Total current assets 369,900 332,500 Plant assets (net) 600,300 520,300 $970,200 $852,800 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable $160,000 $145.400 43,500 42,000 Total current liabilities 203,500 187.400 Bonds payable 200,000 200,000 Total liabilities 403,500 387,400 Stockholders' equity Common stock ($5 par) Retained earnings 280,000 300,000 286,700 165,400 Total stockholders' equity 566,700 465.400 Total liabilities and stockholders' equity $970,200 $852.800
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (16 reviews)
a b c d e f ...View the full answer
Answered By
Robert Mwendwa Nzinga
I am a professional accountant with diverse skills in different fields. I am a great academic writer and article writer. I also possess skills in website development and app development. I have over the years amassed skills in project writing, business planning, human resource administration and tutoring in all business related courses.
4.90+
187+ Reviews
378+ Question Solved
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
Students also viewed these Managerial Accounting questions
-
The comparative statements of Larker Tool SA are presented below. All sales were on account. Instructions Compute the following ratios for 2020. (Weighted-average ordinary shares in 2020 were...
-
The comparative statements of Larker Tool SA are presented below. LARKER TOOL SA Income Statement For the Years Ended December 31 LARKER TOOL SA Statements of Financial Position December 31 All sales...
-
The Comparative statements of cash flows for Executive style corporation, a manufacturer of high-quality suits for men, appear on the next page. To expand its markets and familiarity with its brand,...
-
The temperature of air changes from 0 to 10C while its velocity changes from zero to a final velocity, and its elevation changes from zero to a final elevation. At which values of final air velocity...
-
Traditionally, negotiation and litigation have been the two prevailing methods of dispute resolution. These alternative methods lie at opposite extremes of a spectrum. The negotiation process is...
-
Why did Hellmann's change the focus of the message over time?
-
The Pepper Shop is evaluating a capital expenditure proposal with the following predicted cash flows: At a discount rate of 12 percent, the project's net present value is: a. $2,375 b. \($5,555\) C....
-
Wang Company deposits all receipts and makes all payments by check. The following information is available from the cash records. Instructions (a) Prepare a bank reconciliation going from balance per...
-
Super Toys Corporation manufactures small toy sets for children at Christmas time. The company currently manufactures and sells three models: Standard, Comfortable, and Deluxe. For the 2021 financial...
-
The graph shows a sketch of log 10 ionisation energy against number of electrons removed for magnesium. Use this sketch graph to answer the following questions. a. Explain why the first two electrons...
-
Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All balance sheet data are as of December 31, 2013, and December 31, 2012. Instructions (a) Prepare...
-
Condensed balance sheet and income statement data for Clarence Corporation appear below. Additional information:1. The market price of Clarence?s common stock was $4.00, $5.00, and $8.00 for 2011,...
-
An automobile accident occurs as follows: The driver of a full-size car (vehicle A, 4000 lb) is traveling on a dry, level road and approaches a stationary compact car (vehicle B, 2000 lb). Just 50...
-
How do you feel about constantly being surrounded by energy and what type(s) of electromagnetic energy has the greatest impact on our own life?
-
What are the challenges and benefits of implementing a flat organizational structure in a traditionally hierarchical industry ?
-
Considering the challenges of inventory management that are mentioned in the article (e.g. difficulties balancing and synchronizing demand and supply, capacity problems), what would you suggest to...
-
When your friend argues that people can become good leaders when they receive training, which theory is this argument best aligned with?
-
what are some of the challenges and opportunities in the human resource area as it relates to expanding businesses or new businesses entering the market?
-
Construct a relative frequency ogive for the data in Exercise 7. Exercise 7 A sample of 100 students was asked how many hours per week they spent studying. The following frequency distribution shows...
-
The process of collaborative goal setting by a manager and subordinate, the extent to which goals are accomplished is a major factor in evaluating and rewarding the subordinate's performance. It is...
-
Write the definition of equilibrium in terms of the general rate laws Rate forward rxn = kforward rxn [Reactants]order and Rate reverse rxn = Kreverse rxn[Products Jorder
-
Hawke Skateboards is considering building a new plant. Bob Skerritt, the companys marketing manager, is an enthusiastic supporter of the new plant. Lucy Liu, the companys chief financial officer, is...
-
Hawke Skateboards is considering building a new plant. Bob Skerritt, the companys marketing manager, is an enthusiastic supporter of the new plant. Lucy Liu, the companys chief financial officer, is...
-
Hawke Skateboards is considering building a new plant. Bob Skerritt, the companys marketing manager, is an enthusiastic supporter of the new plant. Lucy Liu, the companys chief financial officer, is...
-
On January 1, 20X1, Woodruff Company had 600,000 shares of common stock outstanding. On September 1, 20X1, an additional 400,000 shares of common stock were issued. In addition, Woodruff had...
-
A reversing entry is multiple choice required as a normal part of the company's recordkeeping process. optional and used to simplify the company's recordkeeping process. required and used to simplify...
-
The Working Family Household and Dependent Care (WFHDC) is a refundable credit available to low- to moderate-income working families who paid for dependent care during the year for one or more...
Study smarter with the SolutionInn App