Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial statements for Thornton Company follow. Required Calculate the following ratios for Year 4 and Year 3 . Since Year 2 numbers are not presented

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Financial statements for Thornton Company follow. 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. Note: Round ratio answers to 2 decimal places unless otherwlse Indlcated. . Working capltal. b. Current ratio. c. Quick ratlo. d. Receivables turnover (beginning recelvables at January 1, Year 3 , were $50,000 ). e. Average days to collect accounts recelvable. Note: Use 365 days In e year. Round your Intermedlate calculations to 2 declmal places and your final answers to the nearest whole number. f. Inventory turnover (beginning inventory at January 1, Year 3, was $156,000 ). g. Number of days to sell inventory. Note: Use 365 days In a year. Round your Intermedlate calculatlons to 2 declmal places and your final answers to the nearest whole number. h. Debt-to-assets ratio. Note: Round your answers to the nearest whole percent. 1. Debt-to-equity ratio. J. Number of umes interest was earned. k. Plant assets to long-term debt. 1. Net margin. m. Turnover of assets (average total assets in Year 3 is $551,600 ). n. Return on Investment (average total assets in Year 3 is $551,600 ). o. Return on equity (average stockholders' equity in Year 3 is $249,300 ). p. Earnings per share (total shares outstanding is unchanged). q. Book value per share of common stock. r. Price-earnings ratio (market price per share: Year 3,$12,55 : Year 4, $14.10 ). Note: Round your Intermediate calculations and final answer to 2 decimal pleces. s. Dividend yleid on common stock. THORNTON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Revenues Sales (net) other revenues Total revenues Expenses cost of goods sold selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends common stock dividends Retained earnings, December 31 Year 4 \begin{tabular}{rr} $390,000 & $370,000 \\ 11,200 & 8,200 \\ \hline 491,200 & 378,200 \\ \hline 195,000 & 151,000 \\ 71,000 & 66,000 \\ 12,800 & 12,000 \\ 103,000 & 102,00 \\ \hline 381,860 & 331,000 \\ \hline 19,400 & 47,200 \\ 129,300 & 89,000 \\ 2,400 & 2,400 \\ 4,500 & 4,500 \\ \hline$141,800 & $129,300 \\ \hline \end{tabular}

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

Case And Problem Materials In Management Accounting

Authors: Tony Brabazon And Tony ODea

2nd Edition

1412024315, 978-1412024310

More Books

Students also viewed these Accounting questions

Question

What is a goal-based model of curriculum planning?

Answered: 1 week ago

Question

Define line and staff authority

Answered: 1 week ago

Question

Define the process of communication

Answered: 1 week ago

Question

Explain the importance of effective communication

Answered: 1 week ago

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago