4 Managerial Accounting Questions

Willingham Company has the following comparative balance sheet data. WILLINGHAM COMPANY Balance Sheets December 31 2014 Cash 2013 $ 10,040 $ 29,720 Receivables (net) 70,330 50,570 Inventory 60,270 49,790 195,460 194,540 $336,100 $324,620 Accounts payable $49,960 $59,100 Mortgage payable (15%) 105,320 105,320 Common stock, $10 par 140,490 115,040 40,330 45,160 $336,100 $324,620 Plant assets (net) Retained earnings Additional information for 2014: 1. Net income was $24,530. 2. Sales on account were $409,330. Sales returns and allowances were $20,570. 3. Cost of goods sold was $184,960. Compute the following ratios at December 31, 2014. (Round all answers to 1 decimal place, e.g. 1.6 .) Current ratio Acidtest ratio Receivables turnover Inventory turnover :1 :1 times times Selected comparative statement data for Molini Products Company are presented below. All balance sheet data are as of December 31. 2014 2013 $704,440 $682,440 479,360 397,070 7,250 5,990 40,680 33,530 122,070 106,010 86,500 71,390 Total assets 575,970 537,600 Total common stockholders' equity 429,860 327,950 Net sales Cost of goods sold Interest expense Net income Accounts receivable Inventory Compute the following ratios for 2014. (Round all answers to 1 decimal place, e.g. 1.6, or 1.6% .) Profit margin Asset turnover Return on assets Return on common stockholders' equity % times % % Yadier Corporation's comparative balance sheets are presented below. Yadier Corporation Balance Sheets December 31 2014 2013 Cash $ 4,020 $ 4,040 Accounts receivable 22,200 23,150 Inventory 10,410 6,830 Land 19,760 26,180 Buildings 69,950 69,950 Accumulated depreciationbuildings (14,930 ) (10,250 ) Total $111,410 $119,900 Accounts payable $ 11,990 $ 30,830 Common stock 75,250 70,080 Retained earnings 24,170 18,990 $111,410 $119,900 Total Yadier's 2014 income statement included net sales of $112,230, cost of goods sold of $59,740, and net income of $14,980. Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.64, or 1.64% .) Current ratio Acidtest ratio Receivables turnover Inventory turnover Profit margin Asset turnover Return on assets Return on common stockholders' equity Debt to total assets ratio :1 :1 times times % times % % % The comparative statements of Beulah Company are presented below. BEULAH COMPANY Income Statement For the Years Ended December 31 2014 Net sales (all on account) 2013 $499,000 $420,000 Cost of goods sold 316,000 254,000 Selling and administrative 120,000 113,000 7,400 5,600 19,500 14,400 Total expenses 462,900 387,000 Net income $ 36,100 $ 33,000 Expenses Interest expense Income tax expense BEULAH COMPANY Balance Sheets December 31 Assets 2014 2013 $ 20,500 $ 18,200 Shortterm investments 18,100 16,000 Accounts receivable (net) 86,700 74,400 Inventory 79,600 59,800 Total current assets 204,900 168,400 Plant assets (net) 422,000 383,000 $626,900 $551,400 $123,000 $109,000 Income taxes payable 12,900 11,700 Total current liabilities 135,900 120,700 120,000 80,400 Current assets Cash Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Longterm liabilities Bonds payable Total liabilities 255,900 201,100 Common stock ($5 par) 154,000 154,000 Retained earnings 217,000 196,300 Total stockholders' equity 371,000 350,300 $626,900 $551,400 Stockholders' equity Total liabilities and stockholders' equity Additional data: The common stock recently sold at $19.50 per share. Compute the following ratios for 2014. (Round Acidtest ratio and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8% .) (a) (b) Current ratio Acidtest ratio Receivables (c) turnover Inventory (d) turnover (e) Profit margin (f) Asset turnover Return on (g) assets Return on common (h) stockholders' equity Earnings per (i) share Priceearnings (j) ratio (k) Payout ratio Debt to total (l) assets Times interest (m) earned Click if you would like to Show Work for this question: :1 :1 times times % times % % $ times % % times Open Show Work Willingham Company has the following comparative balance sheet data. WILLINGHAM COMPANY Balance Sheets December 31 2014 Cash 2013 $ 10,040 $ 29,720 Receivables (net) 70,330 50,570 Inventory 60,270 49,790 Plant assets (net) 195,460 194,540 $336,100 $324,620 Accounts payable $49,960 $59,100 Mortgage payable (15%) 105,320 105,320 Common stock, $10 par 140,490 115,040 Retained earnings 40,330 45,160 $336,100 $324,620 Additional information for 2014: 1. Net income was $24,530. 2. Sales on account were $409,330. Sales returns and allowances were $20,570. 3. Cost of goods sold was $184,960. Compute the following ratios at December 31, 2014. (Round all answers to 1 decimal place, e.g. 1.6 .) Current ratio Acidtest ratio Receivables turnover Inventory turnover :1 :1 times times Selected comparative statement data for Molini Products Company are presented below. All balance sheet data are as of December 31. 2014 Net sales Cost of goods sold Interest expense 2013 $704,440 $682,440 479,360 397,070 7,250 5,990 40,680 33,530 122,070 106,010 86,500 71,390 Total assets 575,970 537,600 Total common stockholders' equity 429,860 327,950 Net income Accounts receivable Inventory Compute the following ratios for 2014. (Round all answers to 1 decimal place, e.g. 1.6, or 1.6% .) Profit margin Asset turnover Return on assets Return on common stockholders' equity % times % % Yadier Corporation's comparative balance sheets are presented below. Yadier Corporation Balance Sheets December 31 2014 2013 Cash $ 4,020 $ 4,040 Accounts receivable 22,200 23,150 Inventory 10,410 6,830 Land 19,760 26,180 Buildings 69,950 69,950 Accumulated depreciationbuildings (14,930 ) (10,250 ) Total $111,410 $119,900 Accounts payable $ 11,990 $ 30,830 75,250 70,080 Common stock Retained earnings 24,170 18,990 $111,410 Total $119,900 Yadier's 2014 income statement included net sales of $112,230, cost of goods sold of $59,740, and net income of $14,980. Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.64, or 1.64% .) Current ratio Acidtest ratio Receivables turnover Inventory turnover Profit margin Asset turnover Return on assets Return on common stockholders' equity Debt to total assets ratio :1 :1 times times % times % % % The comparative statements of Beulah Company are presented below. BEULAH COMPANY Income Statement For the Years Ended December 31 2014 Net sales (all on account) 2013 $499,000 $420,000 Cost of goods sold 316,000 254,000 Selling and administrative 120,000 113,000 7,400 5,600 Expenses Interest expense Income tax expense 19,500 14,400 Total expenses 462,900 387,000 Net income $ 36,100 $ 33,000 BEULAH COMPANY Balance Sheets December 31 Assets 2014 2013 Current assets Cash $ 20,500 $ 18,200 Shortterm investments 18,100 16,000 Accounts receivable (net) 86,700 74,400 Inventory 79,600 59,800 Total current assets 204,900 168,400 Plant assets (net) 422,000 383,000 $626,900 $551,400 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable $123,000 $109,000 Income taxes payable 12,900 11,700 Total current liabilities 135,900 120,700 Bonds payable 120,000 80,400 Total liabilities 255,900 201,100 154,000 154,000 Longterm liabilities Stockholders' equity Common stock ($5 par) Retained earnings 217,000 196,300 Total stockholders' equity 371,000 350,300 $626,900 $551,400 Total liabilities and stockholders' equity Additional data: The common stock recently sold at $19.50 per share. Compute the following ratios for 2014. (Round Acidtest ratio and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8% .) (a) (b) (c) Current ratio Acidtest ratio Receivables turnover :1 :1 times (d) Inventory turnover (e) Profit margin (f) Asset turnover (g) Return on assets (h) Return on common stockholders' equity (i) Earnings per share (j) Priceearnings ratio (k) Payout ratio (l) Debt to total assets (m) Times interest earned Click if you would like to Show Work for this question: times % times % % $ times % % times Open Show Work Willingham Company has the following comparative balance sheet data. WILLINGHAM COMPANY Balance Sheets December 31 2014 Cash 2013 $ 10,040 $ 29,720 Receivables (net) 70,330 50,570 Inventory 60,270 49,790 Plant assets (net) 195,460 194,540 $336,100 $324,620 Accounts payable $49,960 $59,100 Mortgage payable (15%) 105,320 105,320 Common stock, $10 par 140,490 115,040 Retained earnings 40,330 45,160 $336,100 $324,620 Additional information for 2014: 1. Net income was $24,530. 2. Sales on account were $409,330. Sales returns and allowances were $20,570. 3. Cost of goods sold was $184,960. Compute the following ratios at December 31, 2014. (Round all answers to 1 decimal place, e.g. 1.6 .) Current ratio Acidtest ratio Receivables turnover Inventory turnover :1 :1 times times Selected comparative statement data for Molini Products Company are presented below. All balance sheet data are as of December 31. 2014 Net sales Cost of goods sold Interest expense 2013 $704,440 $682,440 479,360 397,070 7,250 5,990 40,680 33,530 122,070 106,010 86,500 71,390 Total assets 575,970 537,600 Total common stockholders' equity 429,860 327,950 Net income Accounts receivable Inventory Compute the following ratios for 2014. (Round all answers to 1 decimal place, e.g. 1.6, or 1.6% .) Profit margin Asset turnover Return on assets Return on common stockholders' equity % times % % Yadier Corporation's comparative balance sheets are presented below. Yadier Corporation Balance Sheets December 31 2014 2013 Cash $ 4,020 $ 4,040 Accounts receivable 22,200 23,150 Inventory 10,410 6,830 Land 19,760 26,180 Buildings 69,950 69,950 Accumulated depreciationbuildings (14,930 ) (10,250 ) Total $111,410 $119,900 Accounts payable $ 11,990 $ 30,830 75,250 70,080 Common stock Retained earnings 24,170 18,990 $111,410 Total $119,900 Yadier's 2014 income statement included net sales of $112,230, cost of goods sold of $59,740, and net income of $14,980. Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.64, or 1.64% .) Current ratio Acidtest ratio Receivables turnover Inventory turnover Profit margin Asset turnover Return on assets Return on common stockholders' equity Debt to total assets ratio :1 :1 times times % times % % % The comparative statements of Beulah Company are presented below. BEULAH COMPANY Income Statement For the Years Ended December 31 2014 Net sales (all on account) 2013 $499,000 $420,000 Cost of goods sold 316,000 254,000 Selling and administrative 120,000 113,000 7,400 5,600 Expenses Interest expense Income tax expense 19,500 14,400 Total expenses 462,900 387,000 Net income $ 36,100 $ 33,000 BEULAH COMPANY Balance Sheets December 31 Assets 2014 2013 Current assets Cash $ 20,500 $ 18,200 Shortterm investments 18,100 16,000 Accounts receivable (net) 86,700 74,400 Inventory 79,600 59,800 Total current assets 204,900 168,400 Plant assets (net) 422,000 383,000 $626,900 $551,400 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable $123,000 $109,000 Income taxes payable 12,900 11,700 Total current liabilities 135,900 120,700 Bonds payable 120,000 80,400 Total liabilities 255,900 201,100 154,000 154,000 Longterm liabilities Stockholders' equity Common stock ($5 par) Retained earnings 217,000 196,300 Total stockholders' equity 371,000 350,300 $626,900 $551,400 Total liabilities and stockholders' equity Additional data: The common stock recently sold at $19.50 per share. Compute the following ratios for 2014. (Round Acidtest ratio and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8% .) (a) (b) (c) Current ratio Acidtest ratio Receivables turnover :1 :1 times (d) Inventory turnover (e) Profit margin (f) Asset turnover (g) Return on assets (h) Return on common stockholders' equity (i) Earnings per share (j) Priceearnings ratio (k) Payout ratio (l) Debt to total assets (m) Times interest earned Click if you would like to Show Work for this question: times % times % % $ times % % times Open Show Work