Financial statements for Walton Company follow. WALTON COMPANY Balance Sheets As of December 31 2019 2018 $ 25, eee 21,800 59,800 144,800 28,800 277,800 27,000 270,000 28,000 $682,800 $ 21,000 7,880 51,080 152,00 13,000 244,800 20,000 255,000 23,000 $542,888 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating: 8,000 shares authorized and issued) Common stock (no par; 5e,eee shares authorized; 10,eee shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 41,600 103,899 21, 20e 166, 480 $ 15,700 99,90 15,000 120,780 180,000 33, eee 133,000 299,480 188,888 28, 128,690 248,700 80, eee 80, 80e 143,400 303,400 $682,800 89, eee 80,000 134,100 294,100 $542,800 2018 $390,000 8,600 398,629 WALTON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2019 Revenues Sales (net) $410,000 Other revenues 11,600 Total revenues 421,600 Expenses Cost of goods sold 205,000 Selling, general, and administrative 73,eee Interest expense 13,400 Income tax expense 113,000 Total expenses 484,480 Net earnings (net income) 17,200 Retained earnings, January 1 134,180 Less: Preferred stock dividends 3,200 Common stock dividends 4,790 Retained earnings, December 31 $143, 4ee 157,00 68,000 12,600 112,000 349,600 49,00 93,699 3,200 4,790 $134, 10e Required 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 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, 2018, were $52,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Round your Intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) t. Inventory turnover (beginning inventory at January 1, 2018. was $158.000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (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.) 1. 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.) 1. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets. (Round your answers to 2 decimal places.) n. Return on investment (Round your answers to 2 decimal places.) o. Return on equity. (Round your answers to 2 decimal places.) p. Earnings per share. (Round your answers to 2 decimal places.) 4. Book value per share of common stock. (Round your answers to 2 decimal places.) 1. Price-earnings ratio (market price per share: 2018. $12.65: 2019. $14.30). (Round your Intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) 2019 2018 times times a. Working capital b. Current ratio c. Quick ratio d. Receivables turnover e. Average days to collect accounts receivable f. Inventory turnover 9. Average days to sell inventory h. Debt to assets ratio days days times days times days 96 times times %6 96 i. Debt to equity ratio i Number of times interest earned k. Plant assets to long-term debt 1. Net margin m. Asset turnover n. Return on investment 0. Return on equity p. Earnings per share 9. Book value per share C Price-earnings ratio s. Dividend yield %6 %6 %6 per share per share per share per share
