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9. The financial statements ofHainzCompany appear below: HAINZCOMPANY Comparative Balance Sheet December 31, Assets 2020 2019 Cash $20,000 $41,000 Short-term investments 28,500 70,000 Accounts receivable
9. The financial statements ofHainzCompany appear below:
HAINZCOMPANY Comparative Balance Sheet December 31, | |||||
Assets | 2020 | 2019 | |||
Cash | $20,000 | $41,000 | |||
Short-term investments | 28,500 | 70,000 | |||
Accounts receivable (net) | 41,500 | 31,500 | |||
Inventory | 60,400 | 70,100 | |||
Property, plant and equipment (net) | 275,000 | 305,000 | |||
Total assets | $425,000 | $517,000 | |||
Liabilities and stockholders' equity | |||||
Accounts payable | $15,740 | $30,800 | |||
Short-term notes payable | 44,500 | 92,500 | |||
Bonds payable | 89,000 | 178,000 | |||
Common stock | 150,000 | 150,000 | |||
Retained earnings | 126,160 | 66,300 | |||
Total liabilities and stockholders' equity | $425,400 | $517,600 |
HAINZCOMPANY Income Statement For the Year Ended December 31, 2020 | ||||
Net sales | $470,000 | |||
Cost of goods sold | 300,800 | |||
Gross profit | 169,200 | |||
Expenses | ||||
Operating expenses | $32,000 | |||
Interest expense | 18,400 | |||
Total expenses | 50,400 | |||
Income before income taxes | 118,800 | |||
Income tax expense | 35,640 | |||
Net income | $83,160 |
Additional information:
a. | Cash dividends of $23,300were declared and paid in 2020. | |
b. | Weighted-average number of shares of common stock outstanding during 2020 was34,650shares. | |
c. | Market value of common stock on December 31, 2020, was $24per share. |
Using the financial statements and additional information, compute the following ratios forHainzCompany for 2020.(Use 365 days for calculation.)
- Current ratio :1
- Return on common stockholders' equity %
- Price-earnings ratio times
- Accounts receivable turnover times
- Times interest earned times
- Profit margin %
- Days in inventory days
- Payout ratio %
- Return on assets %
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