Below are the financial statements of the Golden Demolition Company. During 2017, the company paid $110 of cash dividends. On December 31, 2017, the company's stock traded in the market at $40 per share. 157 158 159 160 Golden Demolition Company 161 Statement of Financial Position 162 December 31, 2017 and 2016 163 Changes 164 2017 2016 Dr Cr 165 Cash 850 S 950 100 167 350 Accounts receivable 2.000 2.350 168 Merchandise 1.450 1.200 $ 250 169 170 Land 4.000 5.000 1.000 Equipment Accumulated Depreciation Total Assets 7.500 (2.800) 6.000 1.500 171 (2.400) 13.100 400 172 173 13.000 174 Accounts payable Bonds payable Common shares $ 1.020 $ 6.000 490 1.510 175 7.000 1.000 176 3.500 3.000 1.590 500 177 Retained eamings Total equities 2.480 890 3.240 178 3.240 S 13.000 13.100 179 180 Golden Demolition Company 181 Income Statement 182 For the year ended December 31, 2017 183 184 Sales 7.220 185 Cost of goods sold Administrative expenses Depreciation expense 4.600 186 187 800 400 188 Interest expense 100 (5.900) 1.320 189 Operating income 190 Gain on sale of land 50 191 Income before tax 1.370 192 Income tax (370) 1.000 193 Net income 194 195 Required: Perform an analysis of Golden Demolition Company's financial statements by calculating 196 197 each of the following ratios for 2017: 198 1 Current ratio 11 Funds flow to debt ratio 199 2. Acid test ratio 12. Return on sales 200 Return on total assets 3. Receivables turnover 13 201 Return on common equity Days sales in receivable Inventory turnover 14 4. 202 5. 15. Net return on assets 203 6. Days' supply in inventory Times interest earned Leverage Earnings per share Price-earning ratio Dividend yield 20. 16. 204 7 17 205 8 Debt-equity ratio 18. 206 9 Debt ratio 19. 207 10 Equity ratio Dividend payout 208 100. Below are the financial statements of the Golden Demolition Company. During 2017, the company paid $110 of cash dividends. On December 31, 2017, the company's stock traded in the market at $40 per share. 157 158 159 160 Golden Demolition Company 161 Statement of Financial Position 162 December 31, 2017 and 2016 163 Changes 164 2017 2016 Dr Cr 165 Cash 850 S 950 100 167 350 Accounts receivable 2.000 2.350 168 Merchandise 1.450 1.200 $ 250 169 170 Land 4.000 5.000 1.000 Equipment Accumulated Depreciation Total Assets 7.500 (2.800) 6.000 1.500 171 (2.400) 13.100 400 172 173 13.000 174 Accounts payable Bonds payable Common shares $ 1.020 $ 6.000 490 1.510 175 7.000 1.000 176 3.500 3.000 1.590 500 177 Retained eamings Total equities 2.480 890 3.240 178 3.240 S 13.000 13.100 179 180 Golden Demolition Company 181 Income Statement 182 For the year ended December 31, 2017 183 184 Sales 7.220 185 Cost of goods sold Administrative expenses Depreciation expense 4.600 186 187 800 400 188 Interest expense 100 (5.900) 1.320 189 Operating income 190 Gain on sale of land 50 191 Income before tax 1.370 192 Income tax (370) 1.000 193 Net income 194 195 Required: Perform an analysis of Golden Demolition Company's financial statements by calculating 196 197 each of the following ratios for 2017: 198 1 Current ratio 11 Funds flow to debt ratio 199 2. Acid test ratio 12. Return on sales 200 Return on total assets 3. Receivables turnover 13 201 Return on common equity Days sales in receivable Inventory turnover 14 4. 202 5. 15. Net return on assets 203 6. Days' supply in inventory Times interest earned Leverage Earnings per share Price-earning ratio Dividend yield 20. 16. 204 7 17 205 8 Debt-equity ratio 18. 206 9 Debt ratio 19. 207 10 Equity ratio Dividend payout 208 100
