3-1 FINANCIAL STATEMENT ANALYSIS Use the following information for Yabba Dabba Doo, Inc answer the next two questions: Dividends paid $24,000 Year-end stock price per share = $12 Quick Asset Ratio= 1.2:1 Net Working Capital Inventory Turnover Ratio = 5.5x (cost) $200,000 Accounts Receivables Turnover Ratio= 10x Total Liabilities 1.75:1 Stockholders' Equity ratio Monthly levels of accounts receivable, inventory, and accounts payable have not varied significan tly during the year. YABBA DABBA DOO., INC. YABBA DABBA DOO., INC. PROFIT AND LOSS STATEMENT STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018 FOR THE YEAR ENDED DECEMBER 31, 2018 2018 2018 ASSETS: Current Assets: Sales (all credit sales) 1,200,000 Less-Cost of Sales Cash ? ? Marketable Securities 70,000 Gross Profit Accounts Receivable ? Inventories ? Less Selling and Admin Expenses 200,000 Total Current Assets Operating Income Plant and Equipment (net) ? Less-Interest Expense 48,000 Total Assets ? Net Income before Taxes ? Less-Income Taxes (34% tax rate) ? LIABILITIES AND CAPITAL: Current Liabilities: Accounts Pay able ? Net Income After Taxes Notes Payable-Bank (12 % ) 100,000 =====#==== Accrued Expenses 20.000 REOUIRED: Total Current Liabilities ? a) Complete the balance sheet and in come statement below: Long-term debt (10 % ) 360,000 b) Compute the following: Capital: 1) Current ratio 2) Return on common equity (% ) Common Stock (80,000 shares, $1 par) 80,000 Retained Earnings 240,000 3) Total asset turnover 4) Interest coverage ratio (Times Interest Earned) Total Capital 320,000 5) Net Profit Margin Total Liabilities and Capital