Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects incial statements. You

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects incial statements. You take the bett Quick ratio Match each computation to one of the liquidity and solvency measures in the table (Hint: Begin by looking for simple computations and identifying the amounts in those computatio other measures that use those amounts.) Liquidity and Solvency Measures Computations Working Capital $3.091.000 - 5800,000 Current ratio $3.091.000 5680,000 51,066,000 880,000 Accounts receivable turnover 58.280,000+(5714,000 +3740.000) 2] Number of days sales in receivables (5714,000 5740,000) + 2) (58,280,000365) Inventory turnover 54.100.000 (51,072.000 $1,100,000) 21 Number of days sales in inventory (51,072,000 $1,100,000) 2] (54,100,000 - 365) Ratio of faced assets to long-term biti 52.690.000 51.690,000 Ratio of babies to stockholders' equity $2.570.000 4.035,000 Times Interest med (5989.400 $127.000) $127,000 Look for patterns in the computations and match them to other computations that are related to each other. Identify the amounts the computations and consider how they are related to amounts Balance Sheet Use the following balance sheet form to term s you dentrom the computations on the liquidity and solvency Measures part. You wil identify the amounts for the balance sheet Pronaty Measures part. If you have a choice of two amounts, assume the first amount in the ratio for the end of the year ty to enter amounts you dey from the computations on the liquidity and Solvency Measures part. You will identify the amounts r e partit you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Com m ents Balance Sheet December 31, 2016 the ance sheet on Assets Current Cash $823,000 Accounts recent Inventory Prepaid expenses Total current assets Long-term investments Property, plant, and woment(net) Total Lates Current abilities Total liabetes Stockholders' Equity Preferred 510 Common stock 55 par Total so lders' e ty Total stockholders' equity Total abilities and stockholders' equity Identity the amounts in the Liquidity and Solvency Measures panel and the Profety Measures panel are balance sheets and corram accordingly Profitability Measures Match each computation to one of the profitability measures in the table Profitability Measures Computations Asset turnover Return on total assets $8.280.000 (55.781,000 + 55,591,000) +2 (5801,420 +$127,000) + (56.605,000+ 36,415.000) 21 Return on stockholders' equity S801,420 (54,035,000 $3,333,250) + 2) Return on common stockholders' equity (5801,420-565,000) + (53,547,500 + $3,405,600) + 2) Earnings per Share on common stock Pricemings ratio (5801,420-565,000) 250,000 shares $35+3.05 $175,000 250.000 shares Dividends per share Dividend yield $0.70 + $35 Comparative Income Statement For the Years Ended December 31, 2016 and 2015 Increase/(Decrease) 2016 2015 Amount 57,287,000 Cost of goods sold (3,444,000) Gross profit Selling expenses ${1,457.600) Administrative expenses (1,242,000) (1,106,000) Total operating expenses $12,563.600) Operating income $.279,400 (120,600 Other expense interest) Income before income tax expense $1,158,800 Income tax expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Alvin Arens, Randal J. Elder

14th Global Edition

0273755013, 978-0273755012

More Books

Students also viewed these Accounting questions

Question

2. Which symptoms of ASPD did Bill have?

Answered: 1 week ago