Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 1

Authors: Frank Wood, Alan Sangster

11th Edition

0273712128, 978-0273712121

More Books

Students also viewed these Accounting questions