Question
Condensed balance sheet and income statement data for Monty Corporation are presented here. Monty Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 32,000
Condensed balance sheet and income statement data for Monty Corporation are presented here.
Monty Corporation Balance Sheets December 31 | ||||||
2020 | 2019 | 2018 | ||||
Cash | $ 32,000 | $ 22,000 | $ 20,000 | |||
Accounts receivable (net) | 52,000 | 47,000 | 50,000 | |||
Other current assets | 98,000 | 103,000 | 72,000 | |||
Investments | 63,000 | 78,000 | 53,000 | |||
Plant and equipment (net) | 500,000 | 370,000 | 358,000 | |||
$745,000 | $620,000 | $553,000 | ||||
Current liabilities | $ 87,000 | $ 82,000 | $ 72,000 | |||
Long-term debt | 153,000 | 93,000 | 58,000 | |||
Common stock, $10 par | 328,000 | 318,000 | 308,000 | |||
Retained earnings | 177,000 | 127,000 | 115,000 | |||
$745,000 | $620,000 | $553,000 |
Monty Corporation Income Statements For the Years Ended December 31 | ||||
2020 | 2019 | |||
Sales revenue | $748,000 | $608,000 | ||
Less: Sales returns and allowances | 42,000 | 32,000 | ||
Net sales | 706,000 | 576,000 | ||
Cost of goods sold | 433,000 | 358,000 | ||
Gross profit | 273,000 | 218,000 | ||
Operating expenses (including income taxes) | 182,000 | 152,000 | ||
Net income | $ 91,000 | $ 66,000 |
Additional information:
1. | The market price of Montys common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. | |
2. | You must compute dividends paid. All dividends were paid in cash. |
(a) Compute the following ratios for 2019 and 2020. (Round answers to 2 decimal places, e.g. 1.83 or 1.83%.)
2020 | 2019 | |||||
Profit margin | % | % | ||||
Gross profit rate | % | % | ||||
Asset turnover | times | times | ||||
Earnings per share | $ | $ | ||||
Price-earnings ratio | times | times | ||||
Payout ratio | % | % | ||||
Debt to assets ratio | % | % |
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