Question
Comparative financial statements for Bent Stew Enterprises are shown below: December 31 2018 2017 Assets Current assets: Cash $3,000 $800 Accounts receivable 8,500 6,000 Inventory
Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
2018
2017
Assets
Current assets:
Cash
$3,000
$800
Accounts receivable
8,500
6,000
Inventory
12,000
8,200
Prepaid expenses
1,400
900
Total current assets
24,900
15,900
Property, plant, and equipment, net
103,600
123,300
Intangible assets, net
64,000
47,000
Total assets
$192,500
$186,200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$11,000
$12,000
Other current liabilities
11,800
3,200
Total current liabilities
22,800
15,200
Long-term debt
120,000
128,000
Total liabilities
142,800
143,200
Stockholders' equity:
Common stock
15,000
15,000
Additional paid-in capital
20,000
20,000
Retained earnings
14,700
8,000
Total stockholders' equity
49,700
43,000
Total liabilities and stockholders' equity
$192,500
$186,200
Year Ended December 31
2018
2017
Sales
$250,000
$ 230,000
Cost of goods sold
164,000
142,300
Gross margin
86,000
87,700
Operating expenses
64,000
54,000
Operating income
22,000
33,700
Interest expense
7,500
5,900
Earnings before income taxes
14,500
27,800
Income taxes
7,800
7,140
Net earnings
$6,700
$20,660
How much is Bent Stew's debt-to-equity ratio at the end of 2018?
A.
2.41
B.
0.74
C.
0.35
D.
2.87
Comparative financial statements for Bent Stew Enterprises are shown below:
December 31
2018
2017
Assets
Current assets:
Cash
$3,000
$800
Accounts receivable
8,500
6,000
Inventory
12,000
8,200
Prepaid expenses
1,400
900
Total current assets
24,900
15,900
Property, plant, and equipment, net
103,600
123,300
Intangible assets, net
64,000
47,000
Total assets
$192,500
$186,200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$11,000
$12,000
Other current liabilities
11,800
3,200
Total current liabilities
22,800
15,200
Long-term debt
120,000
128,000
Total liabilities
142,800
143,200
Stockholders' equity:
Common stock
15,000
15,000
Additional paid-in capital
20,000
20,000
Retained earnings
14,700
8,000
Total stockholders' equity
49,700
43,000
Total liabilities and stockholders' equity
$192,500
$186,200
Year Ended December 31
2018
2017
Sales
$250,000
$ 230,000
Cost of goods sold
164,000
142,300
Gross margin
86,000
87,700
Operating expenses
64,000
54,000
Operating income
22,000
33,700
Interest expense
7,500
5,900
Earnings before income taxes
14,500
27,800
Income taxes
7,800
7,140
Net earnings
$6,700
$20,660
What is the company's days' sales in receivables for 2018?
A.
29.41 days
B.
12.41 days
C.
8.06 days
D.
37.31 days
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Payroll Accounting
Authors: Bernard J Bieg, Judith A Toland
29th Edition
1337673196, 9781337673198
