Question
3. The comparative statements of Corbin Company are presented below. Corey Company Balance Sheets December 31 Assets 2015 2014 Current assets Cash $?21,000 $?18,000 Short-term
3. The comparative statements of Corbin Company are presented below.
Corey Company Balance Sheets December 31 | ||
Assets | 2015 | 2014 |
Current assets |
|
|
Cash | $?21,000 | $?18,000 |
Short-term investments | 18,000 | 15,000 |
Accounts receivable (net) | 91,000 | 74,000 |
Inventory | 85,000 | 70,000 |
Total current assets | 215,000 | 177,000 |
Plant assets (net) | 423,000 | 383,000 |
Total assets | $638,000 | $560,000 |
Liabilities and Stockholders' Equity |
|
|
Current liabilities |
|
|
Accounts payable | $122,000 | $110,000 |
Income taxes payable | 23,000 | 20,000 |
Total current liabilities | 145,000 | 130,000 |
Long-term liabilities |
|
|
Bonds payable | 120,000 | 80,000 |
Total liabilities | 265,000 | 210,000 |
Stockholders' equity |
|
|
Common stock ($5 par) | 150,000 | 150,000 |
Retained earnings | 223,000 | 200,000 |
Total stockholders' equity | 373,000 | 350,000 |
Total liabilities and stockholders' equity | $638,000 | $560,000
|
The common stock recently sold at $19.50 per share. Average common stockholder shares outstanding are 30,000 shares. Net income is $36,400. Net sales is $595,000. Cost of goods sold is $415,000.
Compute the following ratios for 2015
(a) | Current ratio. |
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(b) | Acid-test ratio. |
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(c) | Accounts receivable turnover. |
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(d) | Inventory turnover. |
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(e) | Profit margin. |
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(f) | Asset turnover. |
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(g) | Return on assets. |
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(h) | Return on common stockholders' equity. |
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(i) | Earnings per share. |
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(j) | Price-earnings ratio. |
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(k) | Debt to assets ratio. |
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