Question
Condensed balance sheet and income statement data for Flounder Corporation are presented here. FLOUNDER CORPORATION Balance Sheets December 31 2022 2021 2020 Cash $ 33,000
Condensed balance sheet and income statement data for Flounder Corporation are presented here.
FLOUNDER CORPORATION Balance Sheets December 31 | ||||||
---|---|---|---|---|---|---|
2022 | 2021 | 2020 | ||||
Cash | $ 33,000 | $ 23,000 | $ 21,000 | |||
Accounts receivable (net) | 53,000 | 48,000 | 51,000 | |||
Other current assets | 92,000 | 97,000 | 66,000 | |||
Investments | 57,000 | 72,000 | 47,000 | |||
Plant and equipment (net) | 500,000 | 370,000 | 358,000 | |||
$735,000 | $610,000 | $543,000 | ||||
Current liabilities | $ 88,000 | $ 83,000 | $ 73,000 | |||
Long-term debt | 147,000 | 87,000 | 52,000 | |||
Common stock, $10 par | 322,000 | 312,000 | 302,000 | |||
Retained earnings | 178,000 | 128,000 | 116,000 | |||
$735,000 | $610,000 | $543,000 |
FLOUNDER CORPORATION Income Statements For the Years Ended December 31 | ||||
---|---|---|---|---|
2022 | 2021 | |||
Sales revenue | $742,000 | $602,000 | ||
Less: Sales returns and allowances | 43,000 | 33,000 | ||
Net sales | 699,000 | 569,000 | ||
Cost of goods sold | 427,000 | 352,000 | ||
Gross profit | 272,000 | 217,000 | ||
Operating expenses (including income taxes) | 183,000 | 153,000 | ||
Net income | $ 89,000 | $ 64,000 |
Additional information:
1. | The market price of Flounders common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. | |
2. | You must compute dividends paid. All dividends were paid in cash. |
Compute the following ratios for 2021 and 2022.
2022 | 2021 | |||||||
---|---|---|---|---|---|---|---|---|
Profit margin | enter percentages | % | enter percentages | % | (Round answers to 1 decimal place, e.g. 1.5%.) | |||
Gross profit rate | enter percentages | % | enter percentages | % | (Round answers to 1 decimal place, e.g. 1.5%.) | |||
Asset turnover | enter asset turnover in times | times | enter asset turnover in times | times | (Round answers to 2 decimal places, e.g. 1.83.) | |||
Earnings per share | $enter earnings per share in dollars | $enter earnings per share in dollars | (Round answers to 2 decimal places, e.g. 1.83.) | |||||
Price-earnings ratio | enter price-earnings ratio in times | times | enter price-earnings ratio in times | times | (Round answers to 1 decimal place, e.g. 1.5.) | |||
Payout ratio | enter percentages | % | enter percentages | % | (Round answers to 0 decimal places, e.g. 15%.) | |||
Debt to assets ratio | enter percentages | % | enter percentages | % | (Round answers to 0 decimal places, e.g. 15%.) |
Step 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