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Comprehensive Problem 2 - St of Cash Flows and Ratios Algo C. Ruiz Inc. C. Ruiz Inc. Income Statement Comparative Balance Sheets For years ended
Comprehensive Problem 2 - St of Cash Flows and Ratios Algo
C. Ruiz Inc. | C. Ruiz Inc. | ||||||
Income Statement | Comparative Balance Sheets | ||||||
For years ended December 31, 2017 and 2018 | December 31, 2018 and 2017 | ||||||
2018 | 2017 | Change | |||||
2018 | 2017 | Current assets: | |||||
Sales (all on credit) | $740,000 | $703,000 | Cash | $122,760 | $70,300 | $52,460 | |
Cost of goods sold | (379,000) | (311,000) | Accounts receivable (net) | 34,000 | 28,000 | 6,000 | |
Gross margin | 361,000 | 392,000 | Inventory | 55,000 | 52,000 | 3,000 | |
Prepaid expenses | 2,000 | 4,400 | -2,400 | ||||
Depreciation expense | 36,000 | 51,000 | Other current assets | 2,820 | 4,300 | -1,480 | |
Other operating expenses | 159,000 | 132,000 | Total current assets | 216,580 | 159,000 | 57,580 | |
Total operating expenses | 195,000 | 183,000 | |||||
Operating income | 166,000 | 209,000 | Long-term Investments | 75,000 | 52,000 | 23,000 | |
Other income (expenses) | Plant assets | 302,000 | 253,000 | 49,000 | |||
Interest expense | (5,400) | (4,000) | Less: accumulated depreciation | (76,800) | (51,000) | 25,800 | |
Gain on sale of investments | 7,200 | 5,000 | Total plant assets | 225,200 | 202,000 | 23,200 | |
Loss on sale of plant assets | (4,400) | (5,300) | Total assets | 516,780 | 413,000 | 103,780 | |
Total other income (expenses) | (17,000) | (4,300) | |||||
Current liabilities: | |||||||
Income before income taxes | 163,400 | 204,700 | Accounts payable | $35,300 | $36,000 | $-700 | |
Income taxes expense | (49,020) | (61,410) | Accrued liabilities | 6,000 | 5,000 | 1,000 | |
Net income | $114,380 | $143,290 | Income taxes payable | 4,100 | 15,000 | -10,900 | |
Total current liabilities | 45,400 | 56,000 | -10,600 | ||||
C. Ruiz Inc. | Long term liabilities: | ||||||
Statement of Retained Earnings | Notes Payable | 269,000 | 200,000 | 69,000 | |||
For the year ended December 31, 2018 | Total liabilities | 314,400 | 256,000 | 58,400 | |||
2018 | 2017 | ||||||
Ret. earnings, Jan. 1 | $32,000 | $0 | Stockholders' equity | ||||
Add: net income | 114,380 | 143,290 | Common stock, $5 par value | 100,000 | 100,000 | 0 | |
Deduct: Dividends | (69,000) | (111,290) | Additional paid-in capital | 25,000 | 25,000 | 0 | |
Increase in retained earnings | 45,380 | 32,000 | Retained earnings | 77,380 | 32,000 | 45,380 | |
Ret. earnings, Dec. 31 | $77,380 | $32,000 | Total stockholders equity | 202,380 | 157,000 | 45,380 | |
Total liabilities and stockholders equity | $516,780 | $413,000 | $103,780 | ||||
Other information: | |||||||
Shares of common stock outstanding | 20,000 | 20,000 | |||||
Earnings per share | $5.72 | $7.16 | |||||
Dividends per share | $3.45 | $5.56 | |||||
Market price per share, common stock | $17 | $13 |
Requirement
Prepare a vertical analysis on the partial balance sheets for 2017 and 2018. Enter decreases as negative amounts/percents.
need help with incorrect answers please
C. Ruiz Inc. Partial Balance Sheet (Horizontal Analysis) For the years ended December 31, 2018 and 2017 Increase/decrease 2018 2017 Amount Percent Current assets: Cash $ $ 74.62% 52,460 6,000 70,300 28,000 52,000 Accounts receivable (net) Inventory 21.42% 122,760 34,000 55,000 2,000 3,000 5.70% x Prepaid expenses 4,400 (54.54)% (34.41)% Other current assets 2,820 216,580 (2,400) (1,480) 57,580 4,300 159,000 Total current assets 36.21% Long-term investments 75,000 52,000 23,000 44.23% Plant assets 19.36% (50.58)% Less: accumulated depreciation Total plant assets 302,000 253,000 (76,800) X (51,000) X 225,200 202,000 516,780 $ 413,000 $ 49,000 (25,800) X 23,000 X 103,780 11.38% X Total assets $ 25.12% x C. Ruiz Inc. Partial Balance Sheet (Horizontal Analysis) For the years ended December 31, 2018 and 2017 Increase/decrease 2018 2017 Amount Percent Current assets: Cash $ $ 74.62% 52,460 6,000 70,300 28,000 52,000 Accounts receivable (net) Inventory 21.42% 122,760 34,000 55,000 2,000 3,000 5.70% x Prepaid expenses 4,400 (54.54)% (34.41)% Other current assets 2,820 216,580 (2,400) (1,480) 57,580 4,300 159,000 Total current assets 36.21% Long-term investments 75,000 52,000 23,000 44.23% Plant assets 19.36% (50.58)% Less: accumulated depreciation Total plant assets 302,000 253,000 (76,800) X (51,000) X 225,200 202,000 516,780 $ 413,000 $ 49,000 (25,800) X 23,000 X 103,780 11.38% X Total assets $ 25.12% x
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