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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

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Choose Numerator Enter Numerator Value Enter Denominator Value Choose Denominator Ratio Current ratio Acid-test ratio Inventory turnover Days' sales in inventory Accounts receivable turnover Days' sales in receivables Total asset turnover Debt-to-equity ratio Profit margin Return on total assets Return on common stockholders' equity Pricelearnings ratio (P/E) Dividend yield

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