d. On Septell might you want t maintain rate of 1%. Your monthly payment i ofndividu orodai? Shold you mark-to-market a mark How often would you update jt? and liabilities at their historical values? e. As an individual or a household, why Problems 3 through 10 are based on the following ineo The Ruffy Stuffed Toy Company's balance sheet a the following information: the end of 20x1i the end of 20x Liabilities and Shar Assets Cash Accounts Receivable Inventory $27,300 Payable 35,000 57,000 119,300 Accounts payable Salary Payable Utilities Payable Total current assets Loans (Long-term debt) Property, Plant, and Equipment Total Liabilities 25,000 (2,500) 22,500 16,000 Less Accumulated Depreciation (2.000) 14,000 Total Prop, Plant, and Equipment 36,500 155,800 Less Accumulated Depreciation Net Equipment Common Stock Retained Earnings Total Shareholders' Equity Total Liabilities & Equity Furniture Net Furniture Total Assets During 20x2, the Ruffy Stuffed Toy Company recorded the following transaction Early in the year, purchased a new toy stuffing machine for $9,000 cash and a3-year note for the balance of $12,000. Had cash sales of $115,000 and sales on credit of $316,000. Purchased raw materials from suppliers for $207,000. CHAPTER3 MANAGING FINANCIAL HEALTH AND PERFORMANCE 101 Made payments of $225,000 to its raw materials suppliers. Paid rent expenses totaling $43,000. Paid insurance expenses totaling $23,000 Paid atility bills totaling $7.500:$1,500 of this amount reversed the existing Paid wages and salaries totaling $79,000, $3,000 of this amount reversed the payable from 20x1 - Paid other -The interest rate on the loan payable is 10% per year. Interest was paid on Other information operating expenses totaling $4,000 12/31/20x2 The equipment has boon estimated to have a useful life of 20 years, with no salvag " The existing furniture has been estimated to have a usefal life of 8 years(n . The new stuffing machine has been estimated to have a useful life of 7 years, and value. Two years have been depreciated through 20x1 salvage value), of which one year has been depreciated through 20x will probably have no salvage value. e corporate income tax rate is 35% and taxes are paid on 12/31/2012. Dividend payout, if possible, will be 10% of net income. Cost of Goods Sold for the year's sales were $250,000. Accounts Receivable Ending Balance Beginning Balance cash received from credit customers + sales on credit. Accounts Payable Ending Balance- Beginning Balance + parchases-cash payments to suppliers Inventory Ending Balance- Beginning Balance + purchases of raw material cost of goods sold Th . . The company's stock price at market close on 12/31/20x2 was 4.625. It has 20,000 shares outstanding. Construct the balance sheet for the Ruffy Stuffed Toy Company as of 12/31/20x2. 4. Construct the income statement for operations during the year 20x2. 5. Construct a cash flow statement for the year 20x2 following Profitahility Ratios: Return on Sales, Return on Assets, payments to suppliers Inventory Ending Balance Beginning Balance + purchases of raw material cost of goods sold The company's stock price at market close on 12/51/2082 was 4.62.Ihas 0,000 shares outstanding. . 3. Construct the balance sheet for the Ruffy Stuffed Toy Company as of 12/31/20x2. 4. Construct the income statement for operations during the year 20x2. 5. Construct a cash flow statement for the year 20x2. Analysis Using Financial Ratios 6. Calculate the following Profitability Ratios: Return on Sales, Return on Assets Return on Equity 7. Calculate the following Asset Turnover Ratios: Receivables turnover, Inventory turnover, Asset turnover. 8. Calculate the following Financial Leverage and Liquidity Ratios: debt, times interest earned, current ratio, quick (acid) test. 9. What is the Ruffy's book value per share at the end of 20x2? Market Values versus Book Values 10. Calculate the firm's price-to-eanings ratio and the ratio of is market share price to its book value per share. Analysis Using Financial Ratios 11. You have the following information taken from the 2001 financial statements of Computronixs Corporation and Digitek Corporation: (All fgures are in S millions except for the second and final three rows.) d. On Septell might you want t maintain rate of 1%. Your monthly payment i ofndividu orodai? Shold you mark-to-market a mark How often would you update jt? and liabilities at their historical values? e. As an individual or a household, why Problems 3 through 10 are based on the following ineo The Ruffy Stuffed Toy Company's balance sheet a the following information: the end of 20x1i the end of 20x Liabilities and Shar Assets Cash Accounts Receivable Inventory $27,300 Payable 35,000 57,000 119,300 Accounts payable Salary Payable Utilities Payable Total current assets Loans (Long-term debt) Property, Plant, and Equipment Total Liabilities 25,000 (2,500) 22,500 16,000 Less Accumulated Depreciation (2.000) 14,000 Total Prop, Plant, and Equipment 36,500 155,800 Less Accumulated Depreciation Net Equipment Common Stock Retained Earnings Total Shareholders' Equity Total Liabilities & Equity Furniture Net Furniture Total Assets During 20x2, the Ruffy Stuffed Toy Company recorded the following transaction Early in the year, purchased a new toy stuffing machine for $9,000 cash and a3-year note for the balance of $12,000. Had cash sales of $115,000 and sales on credit of $316,000. Purchased raw materials from suppliers for $207,000. CHAPTER3 MANAGING FINANCIAL HEALTH AND PERFORMANCE 101 Made payments of $225,000 to its raw materials suppliers. Paid rent expenses totaling $43,000. Paid insurance expenses totaling $23,000 Paid atility bills totaling $7.500:$1,500 of this amount reversed the existing Paid wages and salaries totaling $79,000, $3,000 of this amount reversed the payable from 20x1 - Paid other -The interest rate on the loan payable is 10% per year. Interest was paid on Other information operating expenses totaling $4,000 12/31/20x2 The equipment has boon estimated to have a useful life of 20 years, with no salvag " The existing furniture has been estimated to have a usefal life of 8 years(n . The new stuffing machine has been estimated to have a useful life of 7 years, and value. Two years have been depreciated through 20x1 salvage value), of which one year has been depreciated through 20x will probably have no salvage value. e corporate income tax rate is 35% and taxes are paid on 12/31/2012. Dividend payout, if possible, will be 10% of net income. Cost of Goods Sold for the year's sales were $250,000. Accounts Receivable Ending Balance Beginning Balance cash received from credit customers + sales on credit. Accounts Payable Ending Balance- Beginning Balance + parchases-cash payments to suppliers Inventory Ending Balance- Beginning Balance + purchases of raw material cost of goods sold Th . . The company's stock price at market close on 12/31/20x2 was 4.625. It has 20,000 shares outstanding. Construct the balance sheet for the Ruffy Stuffed Toy Company as of 12/31/20x2. 4. Construct the income statement for operations during the year 20x2. 5. Construct a cash flow statement for the year 20x2 following Profitahility Ratios: Return on Sales, Return on Assets, payments to suppliers Inventory Ending Balance Beginning Balance + purchases of raw material cost of goods sold The company's stock price at market close on 12/51/2082 was 4.62.Ihas 0,000 shares outstanding. . 3. Construct the balance sheet for the Ruffy Stuffed Toy Company as of 12/31/20x2. 4. Construct the income statement for operations during the year 20x2. 5. Construct a cash flow statement for the year 20x2. Analysis Using Financial Ratios 6. Calculate the following Profitability Ratios: Return on Sales, Return on Assets Return on Equity 7. Calculate the following Asset Turnover Ratios: Receivables turnover, Inventory turnover, Asset turnover. 8. Calculate the following Financial Leverage and Liquidity Ratios: debt, times interest earned, current ratio, quick (acid) test. 9. What is the Ruffy's book value per share at the end of 20x2? Market Values versus Book Values 10. Calculate the firm's price-to-eanings ratio and the ratio of is market share price to its book value per share. Analysis Using Financial Ratios 11. You have the following information taken from the 2001 financial statements of Computronixs Corporation and Digitek Corporation: (All fgures are in S millions except for the second and final three rows.)