help
SOLOMON COMPANY Balance Sheets As of December 31 2019 2018 $ 23,000 21,400 55,000 140,000 29,000 268, 400 32,000 280,000 32,000 $612,400 $ 19,000 7,400 47,000 148,000 14,000 235,400 25,000 265,000 27,000 $552,400 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 noncurre liabilities Total liabilities 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 Total liabilities and stockholders' equity $ 35, 400 88,800 23,000 147,200 $ 13,900 75,000 17,000 105,900 120,000 29,000 149,000 296, 200 120,000 24,000 144,000 249,900 90,000 90,000 136,200 316, 200 $ 612,400 90,000 90,000 122,500 302,500 $552,400 2018 $350,000 7,800 357,800 SOLOMON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2019 Revenues Sales (net) $ 370,000 Other revenues 10,800 Total revenues 380,800 Expenses Cost of goods sold 185,000 Selling, general, and administrative 69,000 Interest expense 12,200 Income tax expense 93,000 Total expenses 359, 200 Net earnings (net income) 21,600 Retained earnings, January 1 122,500 Less: Preferred stock dividends 3,600 Common stock dividends 4,300 Retained earnings, December 31 $ 136,200 145,000 64,000 11,400 92,000 312,400 45,400 85,000 3,600 4,300 $ 122,500 u. OCLCIVOVIC LUITUVCI cylly ICL IVOVIC OL January 1, CUIU, WCIC TUUvu). Inuun your answCISL UCLIHI Paccs.) e. Average days to collect accounts receivable. (Round your intermediate 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 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.) i. 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.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: 2018, $12.45; 2019, $13.90). (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 121,200 1.82 0.68 2018 129,500 2.22 0.69 7.37 times 50 days 7.25 times 50 days 1.28 times 285 days 0 % 0.96 times 380 days 0 % 0.83 a. Working capital b. Current ratio c. Quick ratio d. Receivables turnover e. Average days to collect accounts receivable f. Inventory turnover g. Average days to sell inventory h. Debt to assets ratio i. Debt to equity ratio j. Number of times interest earned k. Plant assets to long-term debt 1. Net margin m. Asset turnover n. Return on investment o. Return on equity p. Earnings per share q. Book value per share r. Price-earnings ratio s. Dividend yield 0.95 10.39 times 13.05 times % % % % % % per share per share per share per share % % SOLOMON COMPANY Balance Sheets As of December 31 2019 2018 $ 23,000 21,400 55,000 140,000 29,000 268, 400 32,000 280,000 32,000 $612,400 $ 19,000 7,400 47,000 148,000 14,000 235,400 25,000 265,000 27,000 $552,400 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 noncurre liabilities Total liabilities 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 Total liabilities and stockholders' equity $ 35, 400 88,800 23,000 147,200 $ 13,900 75,000 17,000 105,900 120,000 29,000 149,000 296, 200 120,000 24,000 144,000 249,900 90,000 90,000 136,200 316, 200 $ 612,400 90,000 90,000 122,500 302,500 $552,400 2018 $350,000 7,800 357,800 SOLOMON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2019 Revenues Sales (net) $ 370,000 Other revenues 10,800 Total revenues 380,800 Expenses Cost of goods sold 185,000 Selling, general, and administrative 69,000 Interest expense 12,200 Income tax expense 93,000 Total expenses 359, 200 Net earnings (net income) 21,600 Retained earnings, January 1 122,500 Less: Preferred stock dividends 3,600 Common stock dividends 4,300 Retained earnings, December 31 $ 136,200 145,000 64,000 11,400 92,000 312,400 45,400 85,000 3,600 4,300 $ 122,500 u. OCLCIVOVIC LUITUVCI cylly ICL IVOVIC OL January 1, CUIU, WCIC TUUvu). Inuun your answCISL UCLIHI Paccs.) e. Average days to collect accounts receivable. (Round your intermediate 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 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.) i. 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.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: 2018, $12.45; 2019, $13.90). (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 121,200 1.82 0.68 2018 129,500 2.22 0.69 7.37 times 50 days 7.25 times 50 days 1.28 times 285 days 0 % 0.96 times 380 days 0 % 0.83 a. Working capital b. Current ratio c. Quick ratio d. Receivables turnover e. Average days to collect accounts receivable f. Inventory turnover g. Average days to sell inventory h. Debt to assets ratio i. Debt to equity ratio j. Number of times interest earned k. Plant assets to long-term debt 1. Net margin m. Asset turnover n. Return on investment o. Return on equity p. Earnings per share q. Book value per share r. Price-earnings ratio s. Dividend yield 0.95 10.39 times 13.05 times % % % % % % per share per share per share per share % %
