Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial statements for Revnik Company follow. REVNIK COMPANY Balance Sheets As of December 31 2015 2014 Assets Current assets Cash $ 16,000 $ 12,000 Marketable

Financial statements for Revnik Company follow.
REVNIK COMPANY Balance Sheets As of December 31
2015 2014
Assets
Current assets
Cash $ 16,000 $ 12,000
Marketable securities 20,000 6,000
Accounts receivable (net) 54,000 46,000
Inventories 135,000 143,000
Prepaid items 25,000 10,000
Total current assets 250,000 217,000
Investments 27,000 20,000
Plant (net) 270,000 255,000
Land 29,000 24,000
Total assets $ 576,000 $ 516,000
Liabilities and Stockholders Equity
Liabilities
Current liabilities
Notes payable $ 17,000 $ 6,000
Accounts payable 113,800 100,000
Salaries payable 21,000 15,000
Total current liabilities 151,800 121,000
Noncurrent liabilities
Bonds payablew 100,000 100,000
Other 32,000 27,000
Total noncurrent liabilities 132,000 127,000
Total liabilities 283,800 248,000
Stockholders equity
Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued) 80,000 80,000
Common stock (No par; 50,000 shares authorized; 10,000 shares issued) 80,000 80,000
Retained earnings 132,200 108,000
Total stockholders equity 292,200 268,000
Total liabilities and stockholders equity $ 576,000 $ 516,000
REVNIK COMPANY Statements of Income and Retained Earnings For the Years Ended December 31
2015 2014
Revenues
Sales (net) $ 230,000 $ 210,000
Other revenues 8,000 5,000
Total revenues 238,000 215,000
Expenses
Cost of goods sold 120,000 103,000
Selling, general, and administrative 55,000 50,000
Interest expense 8,000 7,200
Income tax expense 23,000 22,000
Total expenses 206,000 182,200
Net earnings (net income) 32,000 32,800
Retained earnings, January 1 108,000 83,000
Less: Preferred stock dividends 3,200 3,200
Common stock dividends 4,600 4,600
Retained earnings, December 31 $ 132,200 $ 108,000

What are the debt to equity ratio, Plant assets to long term debt, asset turnover, return on investment, return on equity, and book value per share for both years.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Health And Safety Audits

Authors: Lawrence B. Cahill, Raymond W. Kane

9th Edition

1605907081, 9781605907086

More Books

Students also viewed these Accounting questions

Question

How prepared was the organization for the new business strategy?

Answered: 1 week ago