Financial Statement Analysis The comparative financial statements of Optical Solutions Inc. are as follows. The mar- ket price of Optical Solutions Inc. common stock was 560.00 on December 31, 2010, Optical Solutions Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Retained earnings. January 1 $ 604,000 $306,000 Add net income for year 428.000 214.000 Total $1.032.000 $620.000 Deduci dividends On preferred stock $ 4 000 $ 4.000 On common stock 12000 12009 Total $16.000 $ 16.000 $604 000 S1.016.000 Retained earnings. December 31 Optical Solutions Inc Comparative Income Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Sales Sales returns and allowances Net ses Cost of goods sold Gross profit Selling expenses Thoministratives Total Detang expenses en per Omeri come $1608.000 5920 51 802080 480/200 512 BAD 53.24 000 2342020 51 481600 5.000 $1 475 600 499200 5976,400 352.000 200 S56200 S313200 5563880 2009 5587880 S32400 Optical Solutions Inc. Comparative Income Statement For the Years Ended December 31, 2010 and 2009 ER Sales Sales returns and allowances Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other income 2010 $1,608.000 5.920 $1.602.080 480 200 $1,121,880 $ 324.000 234.000 $ 558.000 $ 563.880 24.000 $ 587.880 110.720 $ 477.160 49 160 $428.000 2009 $1,481,600 6.000 $1,475.600 499 200 $_976.400 $ 352.000 211 200 $ 563.200 $ 413.200 19,200 $ 432.400 80.000 S 352.400 38.400 $ 314.000 Other expense interest Income before income tax Income tax expense Net income Optical Solutions Inc. Comparative Balance Sheet December 31, 2010 and 2009 Dec 31, 2010 Dec 31, 2009 Assets Current assets Cash Temporary investments Accounts receivable Inet 5 240,000 364.000 260.000 5 162 400 328.BDO 211200 Optical Solutions Ino. Comparative Balane. Shout December 31, 2010 and 2009 Dec 31, 2010 Dec 31, 2009 Assets Current assets Cash $ 240,000 $ 162.400 Temporary investments 364.000 328.800 Accounts receivable (net) 260.000 211,200 Inventones 208,000 66,400 Prepaid expenses 44.000 23.200 Total current assets $1.116.000 $ 792,000 Long-term investments 204,800 256,000 Property, plant, and equipment (net 1.539 200 976.000 Total assets $2.860,000 $2.024.000 Liabilities Current liabilities $360,000 $320.000 Long-term liabilities Mortgage note payable, 8%, due 2015 $384.000 Bonds payable, 10%, due 2019 BOO 000 S 300.000 Total long-term liabilities $1.184.000 $ 800.000 Total liabilities $1,544.000 $1.120.000 Stockholders' Equity Preferred $2.00 stock $50 par $ 100.000 $ 100.000 Common stock $5 par 200.000 200.000 Retained earnings 1016.000 604 000 Tora stockholders equity $1,315.000 $ 904 000 aliabilities and other 52 860 000 $2024000 Total stockholders' equity Total liabilities and stockholders' couity Uw $1.316.000 52 B60 000 $1904.000 $2024 000 Instructions Determine the following measures for 2010, rounding to one decimal place: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. 9. Ratio bf liabilities to stockholders' equity 10. Number of times interest charges earned 11. Number of times preferred dividends earned 12. Ratio of net sales to assets 13. Rate ea ned on total assets 14. Rale earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield Penting of the likes to se doreste punte working Capital
