K 3 ences Financial statements for Allendale Company follow: 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 Bonde payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock (par value $10, 48 cumulative, nonparticipating: 8,000 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 ALLENDALE COMPANY Balance Sheets. As of December 31 Year 4 Year 3 $ 40,000 20,000 54,000 $ 36,000 6,000 46,000 143,000 135,000 25,000 10,000 274,000 241,000 27,000 20,000 270,000 255,000 29,000 24,000 $600,000 $540,000 $ 17,000 113,800 $ 6,000 100,000 15,000 21,000 151,800 121,000 100,000 100,000 32,000 27,000 132,000 127,000 283,800 248,000 80,000 80,000 80,000 80,000 156,200 132,000 316,200 292,000 $600,000 $540,000 3 16.66 points eBook References ALLENDALE COMPANY Statements of Income and Retained Earnings For the Years Ended December 311 Year 4 Year 3 $230,000 $210,000 8,000 5,000 Total revenues 238,000 215,000 Cost of goods sold 120,000 103,000 Selling, general, and administrative 55,000 50,000 Interest expense 8,000 7,200 Income tax expense 23,000 22,000 Total expenses 206,000 182,200 32,000 32,800 Net earnings (net income) Retained earnings, January 1 132,000 107,000 Less: Preferred stock dividends 3,200 3,200 Common stock dividends 4,600 4,600 Retained earnings, December 31 $156,200 $132,000 KI Required ME Calculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 2. Instead, use the number presented on the Year 2 balance sheet. KE KE a. Working capital. KB b. Current ratio. (Round your answers to 2 decimal places.) MB c. Quick ratio. (Round your answers to 2 decimal places.) KB KB d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000). (Round your answers to 2 decimal places.) KB e. Average days to collect accounts receivable. (Round your intermediate calculations to 2 decimal places and your KB KA Revenues Sales (net) Other revenues Expenses M places.) 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, Year 3, was $140,000). (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: Year 3, $11.75; Year 4, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 a. Working capital b. Current ratio C Quick ratio d. Receivables turnover 0. Average days to collect accounts receivable f. Inventory turnover times days times times days times 3 66 nts eBook eferences a. Working capital b. Current ratio C. Quick ratio d. Receivables turnover e. Average days to collect accounts receivable 1. Inventory turnover 9. Average days to sell inventory h. Debt to assets ratio. i. Debt to equity ratio 1. Number of times interest earned Plant assets to long-term debt Net margin Asset tumover Return on investment Return on equity Earnings per share Book value per share Price-earnings ratio Dividend yield k. 1. m. n. 0. p. q. r. S. Year 4 times days times days % times % % % per share per share % Year 3 times days times days % times % % % per share per share %