Mahler Company had the comparative balance sheets that follow with the additional information following that is available to perform certain financial statement analysis for the company. Sales were $540,000, of which 80% were on Credit. Cost of goods sold is 60% of sales. Net income was $40,000 for the year. Average common shares of stock outstanding during the year were 14,500. MAHLER COMPANY COMPARATIVE BALANCE SHEETS FOR YEARS ENDING DECEMBER 31, 20X3 AND 20X4 12/31/X4 12/31/X3 Cash $ 23,500 $ 12,400 Short Term Investments 40,000 30,000 Accounts Receivable (Net) 5,000 5.000 94,000 Inventory 2.400 2.400 58.300 Prepaid Insurance 1.400 950 Land STO 9,000 Buildings 124,000 765.000 Accumulated Depreciation, Buildings Equipment Accumulated Depreciation Equipment 70,000) 85,000) 223,500 193,400 ( 104,800) ( 93,600) 9.200 12.500 15.2000 $ 424,500 $ 396,950 Patents Trademark Total Assets Accounts Payable $ 12,500 $ 18,700 Wages and Salaries Payable 7 2006 ,100 Income Taxes Payable Accumulated Depreciation, Equipment (104,800) ( 93,800) Patents 9,200 12,500 Trademark 15,200 Total Assets 424,600 $ 396,950 Accounts Payable 12,500 $ 18,700 Wages and Salaries Payable 7,200 6,100 Income Taxes Payable 20,600 15,700 Short Term Notes Payable 39,000 51,000 Mortgage Payable 54,000 60,000 Bonds Payable 50,000 Common Stock, $5 par value 100,000 75,000 49,000 65,000 Additional Paid In Capital, Common Stock 39,000 Retained Earnings 75,800 91.450 Treasury Stock (1,000 shares) 8,500) Total Liabilities and Stockholders' Equity $ 424,600 $ 396,950 The debt to equity ratio for the company for 20x4 is: Select one: a. 0.70 b. 1.22. c. 0.41 d. 1.88 15,200 Trademark $ 424,600 $ 396,950 Total Assets $ 12,500 $ Accounts Payable 18,700 Wages and Salaries Payable 7,200 6,100 Income Taxes Payable 20,600 15,700 Short Term Notes Payable 39,000 51,000 Mortgage Payable 54,000 60,000 Bonds Payable 100,00 75,000 Common Stock, $5 par value 50,000 65,000 39,000 Additional Paid In Capital, Common Stock 49,000 Retained Earnings 75,800 91,450 Treasury Stock (1,000 shares) 8,500) 424,600 Total Liabilities and Stockholders' Equity S S 396,950 What is the percentage change in accounts receivable from 20x3 to 20X4? Select one: a. 20.02% b. (10.06)% C. ( 9.57)% d. 10.59% Wages and Salaries Payable 7,200 6,100 Income Taxes Payable 20,600 15,700 Short Term Notes Payable 39,000 51,000 Mortgage Payable 54,000 60,000 Bonds Payable 100,000 50,000 Common Stock, $5 par value 75,000 65,000 Additional Paid In Capital, Common Stock 49,000 39,000 Retained Earnings 75,800 91,450 Treasury Stock (1,000 shares) ( 8,500) Total Liabilities and Stockholders' Equity $ 424,600 $ 396,950 The accounts receivable turnover ratio for the company for 20X4 is: Select one: a. 7.53 times. b. 6.02 times. c.5.72 times. d. 7.15 times. $ 12,500 12 $ 18,700 Accounts Payable Wages and Salaries Payable 7,200 6,100 Income Taxes Payable 20,600 15,700 Short Term Notes Payable 39,000 51,000 Mortgage Payable 54,000 60,000 Bonds Payable 100,000 50,000 Common Stock, $5 par value 75,000 65,000 Additional Paid In Capital, Common Stock 49,000 39,000 Retained Earnings 75,800 91,450 Treasury Stock (1,000 shares) 8,500) Total Liabilities and Stockholders' Equity $ 424,600 $ 396,950 The earnings per share for the company for 20X4 is: Select one: a $2.50. b. $2.78 c. $2.86. d. $2.67
