Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 |
Need help answering the fields below
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 yieldStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started