Liquidity and solvency Measures Your friend another accountant, has bet you that with your knowledge of accounting and just the computation for common analytical measures, you can figure out many aspects of a company's financial statements. You to the bet Match each computation to one of the liquidity and montures in the table. (Hinten by looking for single computations and identifying the amounts in those computations Look for other measures that those amounts) Liquidity and Solvency Measures Computations Working capital $3,095,000 - $340,000 Current rate 53,095,000 5840,000 Quicki 51,066,000+ $540,000 Accounts receivable turnover $3,200,000 (5714,000+5740,000) 21 amber of days in receivables [CS714,000 + 5740,000)+21+(50,260,000+ 365) Inventory turnover $4,100,000 - (51,072,000+ $1,100,000) + 2] Number of inventory (51,072,000+ $1,100,000)+2)+(54,100,000 365) abonetas long ambities $2.690,000 $1,690,000 Rate of late to selders equity 52,530,000+ $4,079,000 (5976.800 + 5127.000) + 5127,000 hance et Use the following balance sheet form to enter amounts you Identity from the computations on the liquidity and Solvency Measures part. You will identify other amounts for the balance sheet on the Profitability Measures part. If you have a choice of two amounts, anume the first amount in the ratio is for the end of the year Compute any missing amounts Balance Sheet December 31, 20Y6 Assets Current $823,000 Marketable securities 303,000 Accounts receivable (net) 740,000 Inventory 1,100,000 Prepaid expenses 127,000 Total current 3,093,000 Long-term investments 824,000 Property, plant, and equipment (net) 2,690,000 Total assets 6,607,000 Labilities Current abilities 340,000 Long-term les 1,690,000 2,530,000 Total liabilities Stockholders' Equity Preferred stock. $10 par 1,790,200 1,250,200 Common stock, 55 par Retained earnings Total stockholders equity 976,800 4,017,000 6,607,000 Total liabilities and stockholders' equity S Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover $8,260,000+($5.785,000+ $5,595.000) 21 Return on total assets (5791,340 + $127.000) = [($6,609,000 + $6,419,000) + 21 Return on stockholders' equity $791,340 + [($4,079,000 + 3.875,050) +21 Return on common stockholders' equity (5791,340 - $65,000) [(83,591,500 + $3,447,840) +21 Earnings per share on common stock (5791,340 - 565,000) + 250,000 shares Price-camninguratio $35 +53.05 Dividends per share $175,000 - 250,000 shares Dividend yield $0.70 535 Comparative Income Statement Use the following comparative income statement form to enter amounts you Identity from the computations on the liquidity and Solvency Mensores part and on the Profitability Measures part. Computer yang amounts and complete the horizontalis columna Enterpercentages as decimato, rounded to one decimal place. When rounding, look only at the figurn to the right of one decimal place. I 5. round down and if a 5. round up. For example, for 32,048 enter 32,00 To 32.0 12.11 Comparative Income Statement For the Years Ended December 31, 2016 and 2015 Tncrease/(Decrease) 2016 2015 Amount Percentage Sales 8.260,000 17.267,000 993,000 13.53 Cost of goods sold 4,100,000 (3,444,000) -656,000 19.05 Grous prot 4,180.000 $3,823,000 337,000 3.77 0 $(1.453,200) 3 - 1,453,200 -100.0 Administrative expenses (1.239.000) 0.100.000) Tutal operating expenses (2.556,200) Operating income $1,266,800 5 Other expensenteret - 127,000 (120,600) -0,400 Income before income tax expense $1,146,200 Income tax expense (7.460) 3966,740 Tot ce Final Questions Your accountant friend reveals that the company where information you have been working on stay constinking ting. What do you have your med Using only the information from your hotel is the comparative Income statement complete the force ha decreased significantly from 2005 to 2016, even though has now cost of goods showed the win gross protit in on selling expen has more The many to be struggling and on these and you recommend that your friend wwe in company's ind Liquidity and solvency Measures Your friend another accountant, has bet you that with your knowledge of accounting and just the computation for common analytical measures, you can figure out many aspects of a company's financial statements. You to the bet Match each computation to one of the liquidity and montures in the table. (Hinten by looking for single computations and identifying the amounts in those computations Look for other measures that those amounts) Liquidity and Solvency Measures Computations Working capital $3,095,000 - $340,000 Current rate 53,095,000 5840,000 Quicki 51,066,000+ $540,000 Accounts receivable turnover $3,200,000 (5714,000+5740,000) 21 amber of days in receivables [CS714,000 + 5740,000)+21+(50,260,000+ 365) Inventory turnover $4,100,000 - (51,072,000+ $1,100,000) + 2] Number of inventory (51,072,000+ $1,100,000)+2)+(54,100,000 365) abonetas long ambities $2.690,000 $1,690,000 Rate of late to selders equity 52,530,000+ $4,079,000 (5976.800 + 5127.000) + 5127,000 hance et Use the following balance sheet form to enter amounts you Identity from the computations on the liquidity and Solvency Measures part. You will identify other amounts for the balance sheet on the Profitability Measures part. If you have a choice of two amounts, anume the first amount in the ratio is for the end of the year Compute any missing amounts Balance Sheet December 31, 20Y6 Assets Current $823,000 Marketable securities 303,000 Accounts receivable (net) 740,000 Inventory 1,100,000 Prepaid expenses 127,000 Total current 3,093,000 Long-term investments 824,000 Property, plant, and equipment (net) 2,690,000 Total assets 6,607,000 Labilities Current abilities 340,000 Long-term les 1,690,000 2,530,000 Total liabilities Stockholders' Equity Preferred stock. $10 par 1,790,200 1,250,200 Common stock, 55 par Retained earnings Total stockholders equity 976,800 4,017,000 6,607,000 Total liabilities and stockholders' equity S Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover $8,260,000+($5.785,000+ $5,595.000) 21 Return on total assets (5791,340 + $127.000) = [($6,609,000 + $6,419,000) + 21 Return on stockholders' equity $791,340 + [($4,079,000 + 3.875,050) +21 Return on common stockholders' equity (5791,340 - $65,000) [(83,591,500 + $3,447,840) +21 Earnings per share on common stock (5791,340 - 565,000) + 250,000 shares Price-camninguratio $35 +53.05 Dividends per share $175,000 - 250,000 shares Dividend yield $0.70 535 Comparative Income Statement Use the following comparative income statement form to enter amounts you Identity from the computations on the liquidity and Solvency Mensores part and on the Profitability Measures part. Computer yang amounts and complete the horizontalis columna Enterpercentages as decimato, rounded to one decimal place. When rounding, look only at the figurn to the right of one decimal place. I 5. round down and if a 5. round up. For example, for 32,048 enter 32,00 To 32.0 12.11 Comparative Income Statement For the Years Ended December 31, 2016 and 2015 Tncrease/(Decrease) 2016 2015 Amount Percentage Sales 8.260,000 17.267,000 993,000 13.53 Cost of goods sold 4,100,000 (3,444,000) -656,000 19.05 Grous prot 4,180.000 $3,823,000 337,000 3.77 0 $(1.453,200) 3 - 1,453,200 -100.0 Administrative expenses (1.239.000) 0.100.000) Tutal operating expenses (2.556,200) Operating income $1,266,800 5 Other expensenteret - 127,000 (120,600) -0,400 Income before income tax expense $1,146,200 Income tax expense (7.460) 3966,740 Tot ce Final Questions Your accountant friend reveals that the company where information you have been working on stay constinking ting. What do you have your med Using only the information from your hotel is the comparative Income statement complete the force ha decreased significantly from 2005 to 2016, even though has now cost of goods showed the win gross protit in on selling expen has more The many to be struggling and on these and you recommend that your friend wwe in company's ind