Question
Financial statements for Cancun Corporation are presented below. Cancun Corporation Comparative Balance Sheet December 31 Assets 2010 2009 Cash $ 120,000 $ 110,000 Accounts receivable
Financial statements for Cancun Corporation are presented below.
Cancun Corporation | ||
Comparative Balance Sheet | ||
December 31 | ||
Assets | 2010 | 2009 |
Cash | $ 120,000 | $ 110,000 |
Accounts receivable (net) | 135,000 | 95,000 |
Inventory | 270,000 | 240,000 |
Property, plant, and equipment (net) | 750,000 | 800,000 |
Total assets | $1,275,000 | $1,245,000 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 152,000 | $ 208,000 |
Accrued liabilities | 12,000 | 16,000 |
Bonds payable, 10 percent | 160,000 | 160,000 |
Common stock, $10 par | 500,000 | 500,000 |
Retained earnings | 451,000 | 361,000 |
Total liabilities and stockholders' equity | $1,275,000 | $1,245,000 |
Cancun Corporation | |||||
Income Statement | |||||
For the Year Ended December 31, 2010 | |||||
Net sales | $1,200,000 | ||||
Cost of goods sold | 700,000 | ||||
Gross margin | $ 500,000 | ||||
Operating expenses | |||||
Depreciation expense | $ 70,000 | ||||
Interest expense | 10,000 | ||||
Other expenses | 260,000 | 340,000 | |||
Income before income taxes | $ 160,000 | ||||
Income taxes expense | 40,000 | ||||
Net income | $ 120,000 | ||||
Note: Dividends of $0.60 per share were declared and paid during 20x8. The market price of the stock on December 31, 2010 was $18.00 per share. Compute the following for 2010 and place your answers in the spaces provided. Round answers to two decimal places. Show your work.
Quick ratio | Days' payable | ||
Days' sales uncollected | Debt to equity ratio | ||
Profit margin | Price/earnings (P/E) ratio | ||
Return on assets | Dividends yield | ||
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