Financial statements for Allendale Company follow. ALLENDALE COMPANY Balance Sheets As of December 31 Year 3 $ 26,000 22,000 61,000 146,000 25,000 280,000 32,000 265,000 30,000 $607,000 $ 22,000 8.000 53,000 154,000 10,000 247,000 25,000 250,000 25,000 $547,000 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equ Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Ctorkholdere eruitv $ 47,600 83,800 23,000 154,400 $ 19,300 70,000 17,000 106,300 120,000 26,000 146,000 300, 400 120,000 21,000 141,000 247,300 Required Calculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3, were $54,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $160,000). (Round your answers to 2 decimal places.) g. Number of days to sell Inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) I. Debt-to-equity ratio. (Round your answers to 2 decimal places.) J. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $547,000). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $547,000). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $139,700). (Round your answers to 2 decimal places.) p. Earnings per hare (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) 1. Price-earnings ratio (market price per share: Year 3, $12.75; Year 4. $14.50). (Round your intermediate calculations and final answer to 2 decimal places.) 5. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 Year 4 125,600 $ $ a. b. c. d. e. 1. 9. 0.71 7.54 48 1.81 Year 3 140,700 2.32 0.78 7.66 times 46 days 1.75 times days OOOOOO times days times days h. j. Working capital Current ratio Quick ratio Receivables turnover (beginning receivables at January 1, Year 3, were $54,000) Average days to collect accounts receivable Inventory turnover (beginning inventory at January 1, Year 3, was $160,000) Number of days to sell inventory Debt-to-assets ratio Do Debt-to-equity ratio Number of times interest was earned Plant assets to long-term debit Net margin Turnover of assets (average total assets in Year 3 is $547,000) Return on investment (average total assets in Year 3 is $547.000) Return on equity (average stockholders' equity in Year 3 is $139,700) Earnings per share (total shares outstanding is unchanged) Book value per share of common stock Price-earings ratio (market price per share: Year 3. $12.75 Year Dividend yield on common stock times times m. per share per share per share per share
