CULLUMBER COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $72,000 $ 68,000 Debt investments (short-term) 51,000 42,000 Accounts receivable 109,000 92,000 Inventory 237,000 169,000 Prepaid expenses 28,000 25,000 Land 131,000 131,000 Total assets Building and equipment (net) Liabilities and Stockholders' Equity 259,000 186,000 $887,000 $713,000 Notes payable $169,000 $109,000 Accounts payable 69,000 50,000 Accrued liabilities 41,000 41,000 Bonds payable, due 2020 252,000 170.000 Common stock, $10 par 209,000 209.000 Retained earnings 147,000 134,000 Retained earnings 147,000 134,000 Total liabilities and stockholders' equity $887,000 $713,000 CULLUMBER COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue $899,000 $795,000 Cost of goods sold 646,000 576,000 Gross profit 253,000 219,000 Operating expenses 192,000 159.000 Net income $ 61,000 $ 60.000 Additional information: 1. Inventory at the beginning of 2016 was $117,000. Accounts receivable (net) at the beginning of 2016 were $90,000. 2. 3. Total assets at the beginning of 2016 were $634,000. Type here to search a 4. 45 5. No common stock transactions occurred during 2016 or 2017. All sales were on account. Your answer is partially correct. Compute the liquidity and profitability ratios of Cullumber Company for 2016 and 2017. (Round current ratio, earnings per share and asset turnover to 2 decimal places, eg 1.83 and all other answers to 1 decimal place, eg. 1.8 or 1.8%. If % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).) 2017 2016 % Change LIQUIDITY Current 178 :1 1.98 :1 1 % ratio Accounts receivables 8.94 times 8.74 times 2.29 % turnover Inventory 3.18 times 4,02 times 1 turnover Type here to search Et Inventory turnover TABILITY argin urnover on 2017 3.18 times 4.02 times 6.79 % 1.12 times 2016 % Change % 7.54 % 0.1 % 1.18 times 5.08 % 8.9 % 1.46 % 174 % 7.6 % $ 2.87 sper $ 2.92 eTextbook and Media Type here to search 9 a Assistance Used A - Your answer is partially correct. The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2017, and (2) as of December 31, 2018, after giving effect to the situation. (Round all answers to 1 decimal places, eg. 1.8 or 1.8%. If % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).) Situation 1. 20,000 shares of common stock were sold at par on July 1, 2018. Net income for 2018 was $55,000. 2. All of the notes payable were paid in 2018. All other liabilities remained at the same levels as at December 31, 2018. At December 31, 2018, total assets were $877,000. 3. The market price of common stock was $9 and $12 on December 31, 2017 and 2018. respectively. Net income for 2018 was $55,000. Return on common Type here to search 2018 O 2017 a Ratio Return on common stockholders' equity Debt to assets ratio Price-earnings ratio % Change Return on common stockholders' 2018 28.70 % 2017 677.77 % % Change 95.7 % equity Debt to 41.28 % 59.86 % 3.10 % assets ratio Price earnings 0.20 times 3.08 times 93.50 * % ratio eTextbook and Media Save for Later Last saved 2 minutes ago. be here to search O a Assistance Used Attempts: 8 of 15 used Submit Answer P ch