eBook Measures of liquidity, Solvency and Profitability The comparative financial statements of Starget Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 2012 Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Retained earnings, January 1 Net Income $5,375,000 $900,000 $4,545,000 $925,000 Dividends: On preferred stock On common stock Increase in retained earnings Retained earnings, December 31 (45,000) (50,000) $805,000 $6,180,000 (45,000) (50,000 $830,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Sales $10,000,000 (5,350,000) $4,650,000 Cost of goods sold $9,400,000 (4,950,000) $4,450,000 $(1,880,000) Gross pront ${2,000,000) Selling expenses eBook $4,650,000 $4,450,000 Gross profit Selling expenses $(2,000,000) (1,500,000) $(1,880,000) (1,410,000) $(3,290,000) Administrative expenses $(3,500,000) $1,150,000 $1,160,000 Total operating expenses Operating income Other revenue and expense: Other revenue Other expense (interest) Income before income tax expense Income tax expense Net income 140,000 (150,000) 150,000 (170,000) $1,130,000 (230,000) $900,000 $1,150,000 (225,000) $925,000 Stargel Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 20Y1 Assets Current assets: Cash Marketable securities Accounts receivable (net) $500,000 1,010,000 $400,000 1,000,000 510,000 740,000 Inventories 1,190,000 950,000 229,000 Prepaid expenses 250,000 keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Accounts receivable (net) Inventories 510,000 950,000 229,000 Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) 740,000 1,190,000 250,000 $3,690,000 2,350,000 3,740,000 $9,780,000 $3,089,000 2,300,000 3,366,000 $8,755,000 Total assets Liabilities $900,000 $880,000 $0 $200,000 1,500,000 $1,700,000 1,500,000 $1,500,000 $2,380,000 $2,600,000 Current liabilities Long-term liabilities: Mortgage note payable, 10% Bonds payable, 10% Total long-term liabilities Total liabilities Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Required: $500,000 500,000 $500,000 500,000 5,375,000 $6,375,000 6,180,000 $7,180,000 $9,780,000 $8,755,000 Determine the following measures for 20Y2, rounding to one decimal place, except dollar amounts which of the requirement for subsequent requirement, if required. Assume 365 days a year. Wocline canal Check My Work Required: Determine the following measures for 20Y2, rounding to one decimal place, except dollar amounts which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year, 1. Working Capital 2. Current ratio days 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days sales in Inventory Check My Work Email Instructor Save and Et Submit Assignment for Grading So $ 4 96 5 O 8 9 7 6 3 P 1 O Y U E R G D H F L ? V M C B N eBook Required: Determine the following measures for 20Y2, rounding to one decimal place, except dollar amounts w of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables days 6. Inventory turnover days 7. Number of days' sales in Inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 100 % 12. Return on total assets % 13. Return on stockholders' equity % 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock % 18. Dividend yield
