Question
Could you please to help me in 2 hours? I need to submit it before 12 Your friend, another accountant, has bet you that with
Could you please to help me in 2 hours? I need to submit it before 12
Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet!
Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.)
Use the following balance sheet form to enter amounts you identify from the computations on the Liquidity and Solvency Measures panel. You will identify other amounts for the balance sheet on the Profitability Measures panel. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Compute any missing amounts.
Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures panel and on the Profitability Measures panel. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If
Match each computation to one of the profitability measures in the table.
Liquidity and Solvency Measures Computations Working capital $3,093,000 - $840,000 Inventory turnover $4,100,000 = [($1,072,000 + $1,100,000) = 2] Number of days' sales in receivables [($714,000 + $740,000) = 2] = ($8,270,000 = 365) Accounts receivable turnover $8,270,000 = [($714,000 + $740,000) = 2] Ratio of liabilities to stockholders' equity $2,530,000 - $4,077,000 Quick ratio $1,866,000 = $840,000 Times interest earned ($983, 100+ $127,000) = $127,000 Ratio of fixed assets to long-term liabilities $2,690,000 = $1,690,000 Current ratio $3,093,000 = $840,000 Number of days' sales in inventory [($1,072,000 + $1,100,000) = 2] = ($4,100,000 = 365) Balance Sheet Score: 64/64 December 31, 2016 Assets 2 Current assets: 3 Cash Marketable securities Accounts receivable (net) $823,000.00 329,000.00 714,000.00 1.072.000.00 155,000.00 Inventory Prepaid expenses Total current assets $3.093,000.00 9 Long-term investments 10 Property, plant, and equipment (net) 824.000.00 2.690.000.00 56,607,000.00 11 Total assets Liabilities 13 Current liabilities $840,000.00 1,690,000.00 14 Long-term liabilities 15 Total liabilities $2.530.000.00 Stockholders' Equity 17 Preferred stock, 510 par 18 Common stock. $5 par 19 Retained earings $487,500.00 1.250.000.00 2,339,500.00 $4,077,000.00 $6.607.000.00 20 Total stockholders' equity 21 Total Liabilities and stockholders' equity Score: 0/128 Comparative Income Statement For the Years Ended December 31, 2018 and 2045 2046 2015 Amount Percentage Increase (Decrease) Increase (Decrease) Sales Cost of goods sold Gross profit Selling expenses Administrative expenses 1,240,500.00 Total operating expenses Income from operations $7,277,000.00 3,444,000.00 $5,855,000.00 $1,455,400.00 1,104,500.00 $2,559,900.00 $1,273,100.00 120,600.00 $1,152,500.00 180,720.00 $971,780.00 Interest expense Income before income tax Income tax expense 12 Net income Profitability Measures Computations Asset turnover $8,270,000 = [($5,783,000+ $5,593,000) - 2 Return on total assets ($796,380 + $ 127,000) = ($6,607,000+ $6,417,000) = 21 Return on stockholders' equity $796,380 = ($4,077,000 + $3,873,150) + 2] Return on common stockholders' equity ($796,380 - $65,000) = ($3,589,500 + $3,445,920) - 2 V Earnings per share on common stock ($ 796,380 - $65,000) = 250,000 shares Price-earnings ratio $35 = $3.05 Dividends per share $175,000 = 250,000 shares Dividend yield $0.70 = $35Step by Step Solution
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