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Posted on Jul 30, 2024

CRANE AND BLUE LTD. Income Statement Year Ended December 31 2021 Net sales $875,000 Cost of goods sold 590,000 Gross profit 285,000 Operating expenses 164,000

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CRANE AND BLUE LTD. Income Statement Year Ended December 31 2021 Net sales $875,000 Cost of goods sold 590,000 Gross profit 285,000 Operating expenses 164,000 Profit from operations 121,000 Other revenues and expenses Interest expense 40,000 Profit before income tax 81,000 Income tax expense 17,000 Profit $64,000 2020 $815,000 540,000 275,000 160,000 115,000 20,000 95,000 25,000 $70,000 2020 $90,000 110,000 140,000 21,000 305,000 $666,000 2019 $10,000 110,000 98,000 150,000 300,000 $668,000 CRANE AND BLUE LTD. Balance Sheet December 31 Assets 2021 Cash $99,000 Accounts receivable 101,000 Inventories 145,000 Prepaid expenses 25,000 Land, buildings, and equipment 390,000 Total assets $760,000 Liabilities and Shareholders' Equity Liabilities Notes payable $110,000 Accounts payable 45,000 Accrued liabilities 32,000 Bonds payable, due 2024 190,000 Total liabilities 377,000 Shareholders' equity Common shares (20,000 issued) 200,000 Retained earnings 183,000 Total shareholders' equity 383,000 Total liabilities and shareholders' equity $760,000 $100,000 45,000 40,000 150,000 335,000 $100,000 50,000 30,000 181,000 361,000 200,000 131,000 331,000 $666,000 200,000 107,000 307,000 $668,000 Calculate all possible liquidity, solvency, and profitability ratios for 2021 and 2020. (Round answers for Collection period, Days sales in inventory, Operating cycle and Free cash flow to 0 decimal places, e.g. 125. Round answer for Earnings per share to 2 decimal places, e.g. 12.50. Round all other answers to 1 decimal place, e.g. 12.5 or 12.5%. Enter negative amount using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) 2021 2020 Liquidity Ratios 1. Current ratio 2. Acid-test ratio 3. Receivables turnover times times 4. Collection period days days 5. Inventory turnover times times 6. Days sales in inventory days days 7. Operating cycle days days Solvency Ratios 8. Debt to total assets 9. Interest coverage times times 10. Free cash flow $ Solvency Ratios 8. Debt to total assets 9. Interest coverage times times 10. Free cash flow Profitability Ratios 11. Gross profit margin 12. Profit margin 13. Asset turnover times times 14. Return on assets 15. Return on equity 16. Earnings per share 17. Payout ratio CRANE AND BLUE LTD. Income Statement Year Ended December 31 2021 Net sales $875,000 Cost of goods sold 590,000 Gross profit 285,000 Operating expenses 164,000 Profit from operations 121,000 Other revenues and expenses Interest expense 40,000 Profit before income tax 81,000 Income tax expense 17,000 Profit $64,000 2020 $815,000 540,000 275,000 160,000 115,000 20,000 95,000 25,000 $70,000 2020 $90,000 110,000 140,000 21,000 305,000 $666,000 2019 $10,000 110,000 98,000 150,000 300,000 $668,000 CRANE AND BLUE LTD. Balance Sheet December 31 Assets 2021 Cash $99,000 Accounts receivable 101,000 Inventories 145,000 Prepaid expenses 25,000 Land, buildings, and equipment 390,000 Total assets $760,000 Liabilities and Shareholders' Equity Liabilities Notes payable $110,000 Accounts payable 45,000 Accrued liabilities 32,000 Bonds payable, due 2024 190,000 Total liabilities 377,000 Shareholders' equity Common shares (20,000 issued) 200,000 Retained earnings 183,000 Total shareholders' equity 383,000 Total liabilities and shareholders' equity $760,000 $100,000 45,000 40,000 150,000 335,000 $100,000 50,000 30,000 181,000 361,000 200,000 131,000 331,000 $666,000 200,000 107,000 307,000 $668,000 Calculate all possible liquidity, solvency, and profitability ratios for 2021 and 2020. (Round answers for Collection period, Days sales in inventory, Operating cycle and Free cash flow to 0 decimal places, e.g. 125. Round answer for Earnings per share to 2 decimal places, e.g. 12.50. Round all other answers to 1 decimal place, e.g. 12.5 or 12.5%. Enter negative amount using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) 2021 2020 Liquidity Ratios 1. Current ratio 2. Acid-test ratio 3. Receivables turnover times times 4. Collection period days days 5. Inventory turnover times times 6. Days sales in inventory days days 7. Operating cycle days days Solvency Ratios 8. Debt to total assets 9. Interest coverage times times 10. Free cash flow $ Solvency Ratios 8. Debt to total assets 9. Interest coverage times times 10. Free cash flow Profitability Ratios 11. Gross profit margin 12. Profit margin 13. Asset turnover times times 14. Return on assets 15. Return on equity 16. Earnings per share 17. Payout ratio