Question
Banfield, Inc. Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 2022* Assets Current Assets: Cash $94,000 $91,000 Accounts Receivables, Net 113,000 115,000 $102,000
Banfield, Inc.
Comparative Balance Sheet
December 31, 2024 and 2023
2024
2023
2022*
Assets
Current Assets:
Cash
$94,000
$91,000
Accounts Receivables, Net
113,000
115,000
$102,000
Merchandise Inventory
145,000
163,000
209,000
Prepaid Expenses
16,000
9,000
Total Current Assets
368,000
378,000
Property, Plant, and Equipment, Net
220,000
181,000
Total Assets
$588,000
$559,000
$600,000
Liabilities
Total Current Liabilities
$228,000
$241,000
Long-term Liabilities
116,000
93,000
Total Liabilities
344,000
334,000
Stockholders' Equity
Preferred Stock, 5%
106,000
106,000
Common Stockholders' Equity, no par
138,000
119,000
95,000
Total Liabilities and Stockholders' Equity
$588,000
$559,000
Banfield, Inc.
Comparative Income Statement
Years Ended December 31, 2024 and 2023
2024
2023
Net Sales Revenue
$458,000
$428,000
Cost of Goods Sold
242,000
217,000
Gross Profit
216,000
211,000
Operating Expenses
138,000
136,000
Income From Operations
78,000
75,000
Interest Expense
9,000
17,000
Income Before Income Tax
69,000
58,000
Income Tax Expense
19,000
25,000
Net Income
$50,000
$33,000
Requirement 1a. Compute the current ratios for
2024
and
2023.
Begin by selecting the formula to compute the current ratio.
| Current ratio | = | Total current assets Total current liabilities |
Part 2
Now,
compute
the current ratios for
2024
and
2023.
(Round your answers to two decimal places, X.XX.)
|
| Current ratio |
|---|---|
| 2024 | 1.61 |
| 2023 | 1.57 |
Part 3
Requirement 1b. Compute the cash ratios for
2024
and
2023.
Begin by selecting the formula to compute the cash ratio.
| Cash ratio | = | (Cash + Cash equivalents) Total current liabilities |
Part 4
Now,
compute
the cash ratios for
2024
and
2023.
(Round your answers to two decimal places, X.XX.)
|
| Cash ratio |
|---|---|
| 2024 | 0.41 |
| 2023 | 0.38 |
Part 5
Requirement 1c. Compute the times-interest-earned ratios for
2024
and
2023.
Begin by selecting the formula to compute the times-interest-earned ratio.
| Times-interest-earned ratio | = | (Net Income + Income tax expense + Interest expense) Interest expense |
Part 6
Now,
compute
the times-interest-earned ratios for
2024
and
2023.
(Round your answers to two decimal places, X.XX.)
|
| Times-interest-earned ratio |
|---|---|
| 2024 | 8.67 |
| 2023 | 4.41 |
Part 7
Requirement 1d. Compute the inventory turnover ratios for
2024
and
2023.
Begin by selecting the formula to compute the inventory turnover ratio.
| Inventory turnover ratio | = | Cost of goods sold Average merchandise inventory |
| Inventory turnover ratio | = | Cost of goods sold Average merchandise inventory |
Part 8
Now,
compute
the inventory turnover ratios for
2024
and
2023.
(Round your answers to two decimal places, X.XX.)
|
| Inventory turnover ratio |
|---|---|
| 2024 | 1.67 |
| 2023 | 1.33 |
Part 9
Requirement 1e. Compute the gross profit percentage for
2024
and
2023.
Begin by selecting the formula to compute the gross profit percentage.
| Gross profit percentage | = | Gross profit Net sales revenue |
Now,
compute
the gross profit percentage for
2024
and
2023.
(Round your answers to one tenth of a percent, X.X. Do not enter the %. For example, enter 10.2% as 10.2.)
|
| Gross profit % | |
|---|---|---|
| 2024 | 0.47 | % |
| 2023 | 0.49 | % |
Part 11
Requirement 1f. Compute the debt to equity ratios for
2024
and
2023.
Begin by selecting the formula to compute the debt to equity ratio.
| Debt to equity ratio | = | Total liabilities Total equity |
Part 12
Now,
compute
the debt to equity ratios for
2024
and
2023.
(Round your answers to two decimal places, X.XX.)
|
| Debt to equity ratio |
|---|---|
| 2024 | 0.58 |
| 2023 |
Requirement 1g. Compute the rate of return on common stockholders' equity for
2024
and
2023.
Begin by selecting the formula to compute the rate of return on common stockholders' equity.
| Rate of return on common | ||
| stockholders' equity | = |
|
Part 14
Now,
compute
the rate of return on common stockholders' equity for
2024
and
2023.
(Round your answers to one tenth of a percent, X.X. Do not enter the %. For example, enter 10.2% as 10.2.)
|
| Rate of return on common stockholders' equity % | |
|---|---|---|
| 2024 |
| % |
| 2023 |
| % |
Part 15
Requirement 1h. Compute the earnings per share of common stock for
2024
and
2023.
Begin by selecting the formula to compute the earnings per share of common stock.
| Earnings per share | = |
|
Part 16
Now,
compute
the earnings per share for
2024
and
2023.
(Round your answers to the nearest cent, $X.XX.)
|
| Earnings per share of common stock |
|---|---|
| 2024 |
|
| 2023 |
|
Part 17
Requirement 1i. Compute the price/earnings
ratio for
2024
and
2023.
Begin by selecting the formula to compute the price/earnings ratio.
| Price/earnings ratio | = |
|
Part 18
Now,
compute
the price/earnings ratio for
2024
and
2023.
(Round your interim calculations and final answers to two decimal places, X.XX.)
|
| Price/earnings ratio |
|---|---|
| 2024 |
|
| 2023 |
|
Requirement 2. Decide (a) whether
Banfield's
ability to pay debts and to sell inventory improved or deteriorated during
2024
and (b) whether the investment attractiveness of its common stock appears to have increased or decreased.
(a) Did
Banfield's
ability to pay its debts and to sell inventory improve or deteriorate during
2024?
deteriorate
improve
Part 20
(b) Did the investment attractiveness of
Banfield's
common stock appear to have increased or decreased?
decreased
increased
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Management A Strategic Emphasis
Authors: Edward Blocher, Kung Chen, Thomas Lin
1st Edition
0070059160, 978-0070059160
