Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

follows. The market price Paid OB).2.2 days les, 36.5 PR 15-4A Nineteen measures of solvency and pro The comparative financial statements of Bettancort Inc. are

image text in transcribed
image text in transcribed
follows. The market price Paid OB).2.2 days les, 36.5 PR 15-4A Nineteen measures of solvency and pro The comparative financial statements of Bettancort Inc. are as of Bettancort Inc. common stock was $71.25 on December 31, 2016. Bettancort Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 $2,655,000 300,000 $2,955,000 2015 $2.400.000 2803800 $2,680,000 Retained earnings, January 1. Add net income for year. Total Deduct dividends: On preferred stock On common stock Total... Retained earnings, December 31 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 $ 15,000 10,000 $ 25,000 $2,930,000 $ 15,000 10,000 25.000 $2,655,000 Sales Cost of goods sold. Gross profit. Selling expenses Administrative expenses. Total operating expenses Income from operations. Other income.. 2016 $1,200,000 500,000 $ 700,000 $ 240,000 180,000 $ 420,000 $ 280,000 166,000 $ 446,000 66,000 $ 380,000 80,000 $ 300,000 2015 $1,000,000 475,000 $ 525,000 $ 200,000 150,000 $ 350,000 $ 175,000 Other expense (interest). Income before income tax Income tax expense Net income 225,000 $ 400,000 60,000 240,000 50,000 000 Bettancort Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec 31, 2016 Dec 31, 2015 $ 450,000 300,000 130,000 67 000 153,000 51.100.000 2,350,000 1.320,000 $4,770,000 $ 400,000 260.000 110,000 58.000 139,000 5 967,000 2.200.000 1,188,000 $4,355.000 Assets Current assets Cash Marketable securities. Accounts receivable (net). Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 8%, due 2021 Bonds payable, 5%, due 2017 Total long-term liabilities Total liabilities Stockholders'Equity Preferred 50.75 stock. $10 par Common stock, $10 par. Retained earnings. Total stockholders'equity. Total liabilities and stockholders' equity. $ 440,000 $ 400.000 $ 100,000 1,000,000 $1,100,000 $1.540,000 5 1,000,000 $1,000,000 $1,400,000 $ 200,000 100,000 2,655,000 $2.955.000 54355,000 $ 200,000 100,000 2,930.000 53.230.000 $4,770.000 Instructions Determine the following measures for 2016, rounding to one decimal place: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Number of times interest charges are eamed 11. Number of times preferred dividends are earned 12. Ratio of sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield

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_2

Step: 3

blur-text-image_3

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

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions