ACC 112 Project 1B The below represents the comparative financial statements of Kamla Corporation. Kamla Corporation Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Net sales (all on account) $1,238,000 $1,006,000 Expenses: Cost of goods sold $826,000 $706,000 Selling and administrative 208,000 218,000 Interest expense 12,000 14,000 Income tax expense 35,000 23,000 Total expenses $959,000 $1,083,000 $47,000 $155,000 Net income Kamla Corporation Comparative Balance Sheet December 31, 2016 and 2015 2015 2016 Assets Current assets: $37,700 $38,000 Cash 28,200 36,000 Notes receivable 149,600 171,600 Accounts receivable (net) 135,400 182,000 Inventory 427,600 350,900 Total current assets 778,000 850,000 Property, plant, and equipment (net) $1,277,600 $1,128,900 Total assets Liabilities and Stockholders' Equity Current liabilities: ES Total assets $1,277,600 $1,128,900 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $240,000 $236,000 Notes payable 47,600 42,000 ady Total current liabilities $287,600 $278,000 Long-term liabilities: Bonds payable 232,000 163,400 Total liabilities $519,600 $441,400 Stockholders' equity: Common stock ($5 par) $300,000 $300,000 Retained earnings 458,000 387,500 Total stockholders' equity 758,000 $687,500 Total liabilities and stockholders equity $1,277,600 $1,128,900 Additional data: 1) The common stock recently sold at $40 per share. The weighted-average common shares outstanding for the two years, 2015 and 2016, was 90,000 shares. Compute the current ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when final answers, you must enter your answers with commas.) Current Liabilities Current Ratio Current Assets 427600 287600 $ $ 1.49 What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amou final answers, you must enter your answers with commas.) For every dollar of 1.49 of current asset to utilize. current asset the company needs to pay, it has $ Before moving onto the next section, please do the following (for screen help, click on the hyperlinks below): 1. Scroll to the end of the page and click on the "Save for Later" button to save your work. 2. When you are ready to begin the next section, you can reference the work that you have completed by clicking on the will open your saved answers in a new window to help you complete the next section. Complete these steps each time you have finished a section. Do not click on the "Submit Answers" button until you have co LINK TO TEXT Compute the acid-test ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts final answers, you must enter your answers with commas.) Cash + Inventory + Accounts Receivable (Net) Acid-Test Ratio Current Liabilities 427600 +$ ($ CALCULATOR PRINTER What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted num final answers, you must enter your answers with commas.) For every dollar of the company needs to pay, it has $ to utilize. of very Before moving onto the next section, please do the following (for screen help, click on the hyperlinks below): 1. Scroll to the end of the page and click on the "Save for Later button to save your work. 2. When you are ready to begin the next section, you can reference the work that you have completed by clicking on the "Printer Version" button at the top o will open your saved answers in a new window to help you complete the next section. Complete these steps each time you have finished a section. Do not click on the "Submit Answers" button until you have completed all of the sections. LINK TO TEXT Compute the receivables turnover ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-format reflected in your final answers, you must enter your answers with commas.) Accounts Receivable Turnover times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers re final answers, you must enter your answers with commas.) times a year/period. an average of its The Company Compute the inventory turnover ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) whew in your final answers, you must enter your answers with commas.) Inventory Turnover $ times What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering am final answers, you must enter your answers with commas.) The Company its an average of times a year/period Before moving onto the next section, please do the following (for screen help, click on the hyperlinks below): 1. Scroll to the end of the page and click on the "Save for Later" button to save your work. 2. When you are ready to begin the next section, you can reference the work that you have completed by clicking on the will open your saved answers in a new window to help you complete the next section. Complete these steps each time you have finished a section. Do not click on the "Submit Answers" button until you have LINK TO TEXT Compute the profit margin ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering am your final answers, you must enter your answers with commas.) Profit Margin 21
