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calculate and analyze the following ratios 3rd and 4th page. Thanks it's all information that I have ACC 122 Fall 2020 Comprehensive Project Best Value
calculate and analyze the following ratios 3rd and 4th page. Thanks
it's all information that I have
ACC 122 Fall 2020 Comprehensive Project Best Value Corporation's Trial Balance at December 31, 20XX is presented below. All 20xx transactions have been recorded except for the items described on the next page. Credit 1 Debit 109,890 28,789 25,540 0 55,674 215,850 75,120 $ 1,027 63,306 16,048 35,278 0 48,900 0 0 0 Cash Accounts Receivable Inventory Debt Investments Land Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Gain on Sale of Land Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total o 29,200 44,580 0 0 107,904 776,068 0 0 0 0 478,542 0 53,274 79,632 0 $ 1,122,311 1,122,311 Round all calculations if necessary to -o-decimals (to the nearest dollar, do not show cents). 1. On January 1, 20XX, Best Value issued 520 shares of $60 par, 5% preferred stock for $75,810. 2. On January 1, 20XX, Best Value also issued 5,800 shares of common stock for $42,050. 3. On January 1, 20XX, Best Value issued $325,000, 5.5%, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 4. Best Value reacquired 3,600 shares of its common stock on January 12, 20XX for $8.50 per share. 5. On December 31, 20XX, Best Value declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31 of next year. 6. On December 31, 20XX, BestValue estimates that the total amount of accounts receivable that is uncollectible at year end is $1,850. 7. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 9. Sold the Land for $60,000 cash. 10. Bought Debt Investments worth $200,000 for cash. 11. The unearned rent was collected on December 1, 20xx. It was receipt of 3 months' rent in advance (December 1, 20XX through February 28 of next year). 12. The first cash interest payment on the 5.5% bonds is due January 1 of next year. The annual interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 13. The BestValue Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 36%. The taxes will not be paid until March of next year. Instructions: a) Prepare journal entries for the transactions listed above. (b) Prepare an updated December 31, 20XX trial balance. (c) Prepare a multiple-step income statement for the year ending December 31, 20xx. d) Prepare a retained earnings statement for the year ending December 31, 20XX. (e) Prepare a classified balance sheet as of December 31, 20XX. (f) Prepare a Statement of Cash Flows as of December 31, 20XX. (g) and (h) Calculate and analyze the following ratios, clearly presenting your work and answers: 1. Working Capital 2. Current Ratio 3. Return on Stockholders' Equity (use ending Common Stockholders' Equity) 4. EPS (all shares are already weighted) 5. Payout Ratio 6. Debt to Assets Ratio 7. Times Interest Earned 8. Free Cash Flow 3 3 (h) Ratio Analysis: Instructions: For each of the ratios below, analyze and describe how BestValue's ratio compares to its nearest competitor, Apple, Inc. See Appendix A in the back of your textbook for Apple's annual financial statements. Use the most current year, 2015, for your calculations. Note: Be sure to show the calculation of Apple's ratios below! 1. Working Capital: 2. Current Ratio: 3. Return on Stockholders' Equity: (use ending Common Stockholders' Equity, not average. Common Stockholders' Equity does not include par value of preferred stock.) 4. EPS: (already calculated in Apple's Income Statement) 9 d C 5. Payout Ratio: -1 ac 6. Debt to Assets ratio: XE ja of w 7. Times Interest Earned: (Note: Apple's 2015 10-K shows $733 (in millions) in Interest Expense) 8. Free Cash FlowStep by Step Solution
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