Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative financial statements for Ivanhoe and Sarasota Ltd. are shown below. IVANHOE AND SARASOTALTD. Balance Sheet December 31 Liabilities and Shareholders' Equity Liabilities Accounts payable

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Comparative financial statements for Ivanhoe and Sarasota Ltd. are shown below. IVANHOE AND SARASOTALTD. Balance Sheet December 31 Liabilities and Shareholders' Equity Liabilities Accounts payable Accrued liabilities Notes payable, due 2025 \begin{tabular}{rrrr} $43,000 & $40,000 & $60,000 \\ 32,000 & 45,000 & 35,000 \\ 110,000 & 100,000 & 100,000 \\ 190,000 & & 150,000 & 164,000 \\ \hline 375,000 & & 335,000 & 359,000 \\ \hline \end{tabular} Shareholders' equity Commonshares (20,000 issued ) 200,000200,000200,000 Additionat information: 1. Seventy-five percent of the sales were on account. 2. The allowance for doubtful accounts was $4,000 in 2024,$5,000 in 2023 , and $3,000 in 2022 . 3. In 2024 and 2023 , dividends of $4,000 and $10,000, respectively, were paid to the common shareholders 4. Cash provided by operating activities was $103,500 in 2024 and $123.000 in 2023 . 5. Cash used by investing activities was $107,500 in 2024 and $31,000 in 2023. Calculate all possible liquidity, solvency, and profitability ratios for 2024 and 2023, (Round answers for collection period, doys sales in inventory, operating cycle and free cash flow to 0 decimal places, es. 125. Round answer for eamings per share to 2 decimal places, eg. 12.50. Round all other answers to 1 decimal place, e. . 12.5 or 12.5\%. Enter negative amount using either a negative sign preceding the number eg. 45 or parentheses e.g. (45). Use 365 days for calculation.) Solvency Ratios 8. Debt to total assets % % 9. Interest coverage times times 10. Freecashflow Profitability Ratios 11. Gross profit margin 12. Profit margin % ?s 13. Asset turnover times times 14. Returnon assets % \%) 15. Return on equity 16. Earnings per share 17. Payout ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions