12-3 Calculating liquidity ratios (LO 3) Kildare Hospital Furnishings manufactures hospital beds and other institu- tional fumiture. The company's comparative balance sheet and income statement for 2013 and 2012 Follow 2012 $ 417,400 776,400 618,000 247.000 2,058,800 8.440.100 $10.498,900 $ 2,846,000 3.829.600 6.675.600 58,900 103,800 3.660.600 3.823300 $10.499,900 Kildare Hospital Furnishings Comparative Balance Sheet 2013 Assets Current assets Cash $382,600 Accounts receivable, net 965,370 Inventory 717,000 Other current assets 381300 Total current sets 2,446,270 Property, plant, & equipment, bet 9.786.000 Total assets $11.232.270 Liabilities and Stockholders' Equity Eurrent liabilities $3,261,800 long-term deht 3.600.702 Total liabilities 6,862.502 Preferred stock. 55 par value 60,900 Common stock $0.25 par value 107,600 Retained earnings 4.201.268 Total stockholders equity 4.369.768 Total liabilities and stockholders' equity $11.232,270 Kildare Hospital Furnishings Comparative Income Statement 2013 Sales revenue (all on account) $10,200,177 Cost of goods sold 5,611.600 Gross profit 4,588,577 Operating expenses 2.870.200 Net operating income 1,718,377 Interest expense 300.277 Net income before taxes 1,418,100 Income taxes (30%) 425430 Net income $992,670 Dividends paid Preferred dividends 29,450 Common dividends 422,552 Total dividends paid 452.002 Net income retained 540,668 Retained earnings, beginning of year 3,660.600 Retained earnings, end of year $ 4,201.268 Required Calculate the following liquidity ratios for 2013 a. Working capital b Current ratio C Acid-test ratio d. Accounts receivable turnover 2012 $ 9,613,900 5.298,700 4,315,200 2.634.100 1,681,100 308.600 1,372,500 411.750 $ 960.750 29.450 413.000 4.42450 518,300 3.142.300 $3,660.600 Avenge notion period inventory turnover Average days to solventory 124 Calculating leverage ratios (L03) Refar to Kildare Hospital Furnishings' financial statements, presented in Exercise 123 Required Calculate the following leverage ration for 2013 Debt ratio b Debt-to-equity ratio Times Interesteamed ratio 12 5 Calculating profitability ratios (103) Refer to Kildare Hospitai Furnishings financial statements, presented in Exercise 12-3 Required Calculate the following profitability ratios for 2013 a. Gross margin percentage b. Retum on assets c. Return on common stockholders' equity 12-6 Calculating market measure ratios (LO 3) Refer to Kildare Hospital Furnishings financial statements, presented in Exercise 12-3 Required Calculate the following market measure ratios for 2013 a. Earnings per share (average of 422 800 shares outstanding for the year) b. Priceleamings ratio (market price of $48 at year-end) C Dividend payout ratio (dividends of $1.00 por common share for the year)
