Financial statements for Solomon Company follow SOLOMON COMPANY Balance Sheets As of December 31 2019 2018 Assets Current assets 23,000 21,400 55,000 140,000 29,000 268,400 32,000 80,000 32,000 19,000 7,400 47,000 148,000 14,000 235,400 25,000 55,000 27,000 Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land $612,400 $552,400 Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable 35,400 88,800 23,000 13,900 75,000 17,000 147,200 105,900 Total current liabilities Noncurrent 1iabilities Bonds payable 120,000 29,000 149,000 120,000 24,000 144,000 Other Total noncurrent liabilities Total liabilities 296,200 249,900 Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non- participating; 9,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders equity 90,000 90,000 90,000 136,200 316,200 90,000 122,500 302,500 $552,400 Total liabilities and stockholders' equity $612,400 SOLOMON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2019 2018 Revenues Sales (net) $370,000 10,800 $350,000 7,800 Other revenues Total revenues 380,800 357,800 Expenses Cost of goods sold Selling, general, and administrative 185,000 145,000 64,000 69,000 12,200 93,000 359,200 21,600 122,500 3,600 4,300 11,400 92,000 Interest expense Income tax expense 312,400 Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends 45,400 85,000 3,600 4,300 $136,200 $122,500 Retained earnings, December 31 Requlred Calculate the following ratios for 2019 and 2018. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 balance sheet. a. Working capital b. Current ratio. (Round your answers to 2 declimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, 2018, were $48.000). (Round your answers to 2 declmal places.) e. Average days to collect accounts receivable. (Round your Intermedlate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, 2018, was $154,000). (Round your answers to 2 declmal places.) g. Number of days to sell inventory. (Round your Intermedlete calculations to 2 declmal 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 declmal places.) k. Plant assets to long-term debt. (Round your answers to 2 declmal places.) I. Net margin. (Round your answers to 2 declmal places.) m. Turnover of assets. (Round your answers to 2 declmal places.) n. Return on investment. (Round your answers to 2 declmal places.) o. Return on equity. (Round your answers to 2 declmal places.) p. Earnings per share. (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 declmal places.) r. Price-earnings ratio (market price per share: 2018, $12.45: 2019, $13.90). (Round your Intermediate calculations and final answer to 2 declmal places.) s. Dividend yield on common stock. (Round your answers too 2 declmal places.) 2019 2018 a. Working capital b. Current ratio Quick ratio C. d. Receivables turnover times times days e. Average days to collect accounts receivable days f.Inventory turnover times times g. Average days to sell inventory days days h. Debt to assets ratio i.Debt to equity ratio Number of times interest earned times times k. Plant assets to long-term debt INet margin m. Asset turnover n. Return on investment % o. Return on equity p. Earnings per share per share per share per share q.Book value per share per share r. Price-earnings ratio S. Dividend yield %
