Mastery Problemi Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a compan financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and Identifying the amounts in these computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital $3,091,000 - $880,000 Current ratio $3,091,000+ $880,000 Quick ratio $1,866,000 + $880,000 Accounts receivable turnover $8,280,000 + (5714,000 - $740,000) +21 Number of days' sales in receivables [(9714,000 + $740,000) 2) + (58,280,000365) Inventory turnover $4,100,000 + ($1,072,000+ $1,100,000) 2] Number of days' sales in inventory ($1,072,000+ $1,100,000) + 2) + (54,100,000 - 365) $2,690,000+ $1,690,000 Ratio of fixed assets to long-term abilities Ratio of liabilities to stockholders' equity $2,570,000+ $4,035,000 Times interest earned (5989,400+ $127,000) $127.900 Feeds Checy Won Look for patterns in the computations and match them to rates that are related to each other. Identify the amounts in the computations and consider how they are related to amounts in other computations. Balance Sheet Use the following balance sheet form to enter amounts you identity from the computations on the Liquidity and Solvency Measures part. You will entify other amounts for the balance sheet on the 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, assume the first amount in the ratio is for the end of the year. Computer any missing amounts. Balance Sheet December 31, 2016 Assets Current assets: Cash $823,000 Marketable securities Accounts receivable (net) Inventory Prepaid expenses Total current assets Long term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' Equity Preferred stock, $10 par Common stock. $5 par Retained earnings Total stockholders equity Total abilities and stockholders' equity Match each computation to one of the profitability measures in the table Profily Measures Computations et tumover 58,260,000 (55,781,000 + 55.591,000) + 2) (5801,4205127.000)+(86,605,000 $6,415,000) Return on the equity $801420 (54,035,000 $3,633,250) + 2) (S801,420 - 365,000)+($3.547.500 $3,405,600) E s per Share on common stock (5301.420-565,000) .250,000 shares Price-carnings 2] 2) Dividendeshare $3.05 Didendad 5175,000 250.000 shares 0.70 535 Lor e motions and match them to th e mount the command a nt in the computation Comparative Income Statement use the wing compertve income statement form to enter a s you from the computations on the liquidity and Sancy Measures art and on the Profitab Measures part Come n ts and complete the hotel analys e r percentages decimal amounts rounded to deal wherunding o nly at there to the one del round down and 1. Found Forex for 2 12.04 For 32 Comparative Income Statement For the Year Ended December 31, 2015 and 2015 Increase/Decrease) 2016 Comparative Income Statement Use the following comparative Income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If