Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with this financial accounting assignment please. Problem 14-4A Financial information for Ernie Bishop Company is presented below. ERNIE BISHOP COMPANY Balance Sheets

I need help with this financial accounting assignment please.

image text in transcribed Problem 14-4A Financial information for Ernie Bishop Company is presented below. ERNIE BISHOP COMPANY Balance Sheets December 31 Assets 2013 2012 Cash $ 102,200 $ 94,900 75,920 58,400 Receivables (net) 143,080 116,800 Inventory 182,500 197,100 Shortterm investments Prepaid expenses 42,340 Building and equipment (net) 33,580 189,800 Land 189,800 245,280 255,500 $981,120 $946,080 Liabilities and Stockholders' Equity Notes payable $146,000 146,000 Accounts payable 70,080 61,320 Accrued liabilities 64,240 58,400 Bonds payable, due 2016 219,000 219,000 Common stock, $10 par 292,000 292,000 Retained earnings 189,800 169,360 $981,120 $946,080 ERNIE BISHOP COMPANY Income Statement For the Years Ended December 31 2013 Net sales 2012 $1,252,680 $1,165,080 Cost of goods sold 892,060 839,500 Gross profit 360,620 325,580 Operating expenses 298,570 264,260 Net income $ 62,050 $ 61,320 Additional information: 1. Inventory at the beginning of 2012 was $172,280. 2. Total assets at the beginning of 2012 were $922,720. 3. No common stock transactions occurred during 2012 or 2013. 4. All sales were on account. 5. Receivables (net) at the beginning of 2012 were $128,480. (a) Indicate, by using ratios, the change in liquidity and profitability of Ernie Bishop Company from 2012 to 2013. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .) 2012 LIQUIDITY Current Acidtest Receivables turnover Inventory turnover PROFITABILITY Profit margin Asset turnover Return on assets Earnings per share 2013 Change :1 :1 times times % times % $ :1 :1 times times % times % $

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

Financial Accounting Plus

Authors: Robert Libby, Patricia Libby, Daniel Short

7th Edition

0077480015, 9780077480011

More Books

Students also viewed these Accounting questions

Question

Where do you plan to locate your business? Explain.

Answered: 1 week ago

Question

Find the limit and give explanation please 1 x 1+1nx lirnxm

Answered: 1 week ago