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how to determine these and prepare a cash flow statement using these information ? PRI PR 17-4A Nineteen measures of solvency and profitability The comparative
how to determine these and prepare a cash flow statement using these information ?
PRI PR 17-4A Nineteen measures of solvency and profitability The comparative financial statements of Dettancon Inc. are as follows. The market pr of common was on Bettancert Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 2014 $2.655,000 300,000 3015 $2.400.000 260 DOP Retained earnings, January 1 Add net income for year Total Deduct dividends: $2.955.000 5 $ 15,000 On preferred stock 15,000 10,000 On common stock. 10,000 25,000 Total $25.000 $2.930,000 ****** $2,655,000 Retained earnings. December 31 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 Sales (all on account) 2014 $1,212,000 12,000 $1,200,000 500,000 Sales returns and allowances, Net sales... Cost of goods sold. Gross profit. $ 700,000 $ 240,000 180,000 Selling expenses Administrative expenses. Total operating expenses Income from operations Other Income. $ 420,000 $ 280,000 166,000 $ 446,000 66,000 Other expense (interest). Income before Income tax Income tax expense Net income $ 380,000 80,000 $ 300,000 Bettancort Inc. Comparative Balance Sheet December 31, 2014 and 2013 Dec. 31, 2014 Current assets: k Cash $ 450,000 300,000 130,000 Marketable securities... Accounts receivable (net). Inventories 67,000 Prepaid expenses Total current assets 153,000 $1,100,000 2,350,000 Long-term Investments. 1,320,000 Property, plant, and equipment (net) Total assets $4,770,000 Liabilities $ 440,000 Current liabilities. Long-term Habilities: Mortgage note payable, 8%, due 2019. $ 100,000 1,000,000 Bonds payable, 10%, due 2015. $1,100,000 Total long-term liabilities. $1.540,000 Total liabilities Winted On TE CIA nar $ 200,000 umber of days receivables, Assets Stockholders' Equity 2013 $1,010,000 10.000 $1,000,000 475,000 $ 525,000 $ 200,000 150,000 $350,000 $ 175,000 225,000 $ 400,000 60,000 $ 340,000 60,000 $ 280,000 Dec. 31, 2013 $ 400,000 260,000 110,000 58,000 139,000 $ 967,000 2,200,000 1,188,000 $4,355,000 $ 400.000 S 0 1,000,000 $1,000,000 $1,400,000 $ 200,000 Sales (all on account). Sales returns and allowances. Net sales. Cost of goods sold. Gross profit.. Selling expenses Administrative expenses. Total operating expenses Income from operations Other Income. Other expense (interest) Income before Income tax Income tax expense Net Income 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 2019. Bonds payable, 10%, due 2015 Total long-term liabilities. Total liabilities Preferred $0.75 stock, $10 par Common stock, $10 par.. Retained earnings.. Total stockholders' equity... Total liabilities and stockholders' equity. Bettancort Inc. Comparative Balance Sheet December 31, 2014 and 2013 Assets Stockholders' Equity **** 12,000 $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 Dec. 31, 2014 $ 450,000 300,000 130,000 67,000 153,000 $1,100,000 2,350,000 1,320,000 $4,770,000 $ 440,000 $ 100,000 1,000,000 $1,100,000 $1,540,000 $ 200,000 100,000 2.930,000 $3,230,000 $4.770.000 10,000 $1,000,000 475,000 $ 525,000 $ 200,000 150,000 $ 350,000 $ 175,000 225,000 $400,000 60,000 $ 340,000 60,000 $ 280,000 Dec. 31, 2013 $ 400,000 260,000 110,000 58,000 139,000 $ 967,000 2,200,000 1,188,000 $4,355,000 $ 400,000 $ 0 1,000,000 $1,000,000 $1,400,000 $ 200,000 100,000 2,655.000 $2,955,000 $4,355,000 Instructions Determine the following measures for 2014, 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' quity TO. Number of times interest charges are earned 11. Number of times preferred dividends are earned 12. Ratio of net 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
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