!! IN m ilitar tina, mil LLL u W til ne hen Parim 946 chapter 17 HORNGREN'S ACCOUNTING - 12th Edition P17-27A Requirements 1. Compute the following ratios for 2018 and 2017: a. Current ratio b. Cash ratio c. Times-interest-earned ratio d. Inventory turnover e. Gross profit percentage f Debt to equity ratio g. Rate of return on common stockholders' equity h. Earnings per share of common stock 1. Price/earnings ratio 2. Decide (a) whether Sanfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased Solution: Requirement 1 Vi till LT til mehman and TH 1 1419 ! IF IT 13th HORNGREN'S ACCOUNTING - 12th Edition P18-28A Requirements 1. Prepare a schedule of cost of goods manufactured for Gourmet Bones for the year ended December 31, 2018. 2. Prepare an income statement for Gourmet Bones for the year ended December 31, 2018 3. How does the format of the income statement for Gourmet Bones differ from the income statement of a merchandiser? 4. Gourmet Bones manufactured 17,900 units of its product in 2018. Compute the company's unit product cost for the year, rounded to the nearest cent. plution: Requirement 1 Gourmet Bones dule of cost of Goods Manufactured !! IN m ilitar tina, mil LLL u W til ne hen Parim 946 chapter 17 HORNGREN'S ACCOUNTING - 12th Edition P17-27A Requirements 1. Compute the following ratios for 2018 and 2017: a. Current ratio b. Cash ratio c. Times-interest-earned ratio d. Inventory turnover e. Gross profit percentage f Debt to equity ratio g. Rate of return on common stockholders' equity h. Earnings per share of common stock 1. Price/earnings ratio 2. Decide (a) whether Sanfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased Solution: Requirement 1 Vi till LT til mehman and TH 1 1419 ! IF IT 13th HORNGREN'S ACCOUNTING - 12th Edition P18-28A Requirements 1. Prepare a schedule of cost of goods manufactured for Gourmet Bones for the year ended December 31, 2018. 2. Prepare an income statement for Gourmet Bones for the year ended December 31, 2018 3. How does the format of the income statement for Gourmet Bones differ from the income statement of a merchandiser? 4. Gourmet Bones manufactured 17,900 units of its product in 2018. Compute the company's unit product cost for the year, rounded to the nearest cent. plution: Requirement 1 Gourmet Bones dule of cost of Goods Manufactured