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CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not complete Marked out of 24.00 P Flag question Ratios from Comparative and Common-Size Data Consider the
CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not complete Marked out of 24.00 P Flag question Ratios from Comparative and Common-Size Data Consider the following financial statements for Vega Company. During the year, management obtained additional bond financing to enlarge its production facilities. The plant addition produced a new high-margin product, which is supposed to improve the average rate of gross profit and return on sales. As a potential investor, you decide to analyze the financial statements. VEGA COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Cash $21,000 $16,100 21,400 Accounts receivable (net) 39,000 105,000 72,000 inventory Prepaid expenses 3,000 427,500 463,500 Plant and other assets (net) $630,000 $540,000 Total Assets Liabilities and Stockholders' Equity Current liabilities $46,000 S77,000 151,000 996 Bonds payable 188,500 8% Preferred stock, $50 Par Value 61,000 61,000 Common stock, $10 Par Value 226,000 226,000 82,500 61,000 Retained earnings $630,000 $540,000 Total Liabilities and Stockholders' Equity
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