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Mugs Company Comparative Balance Sheet December 31, 2007 2007 2006 Assets Cash $ 25,000 $ 40,000 Marketable securities 20,000 60,000 Accounts Receivable (net) 40,000 30,000
Mugs Company | ||
Comparative Balance Sheet | ||
December 31, 2007 | 2007 | 2006 |
Assets | ||
Cash | $ 25,000 | $ 40,000 |
Marketable securities | 20,000 | 60,000 |
Accounts Receivable (net) | 40,000 | 30,000 |
Inventory | 150,000 | 170,000 |
Property,plant and equipment (net) | 170,000 | 200,000 |
Total Assets | $405,000 | $500,000 |
Liabilities and stockholders' equity | ||
Accounts payable | $ 25,000 | $ 30,000 |
Bond Interest payable | 40,000 | 90,000 |
Bonds payable | 75,000 | 160,000 |
Common Stock | 175,000 | 145,000 |
Retained earnings | 90,000 | 75,000 |
Total liabilities and stockholders' equity | $405,000 | $500,000 |
Mugs Company | |||
Income Statement | |||
For the Year Ended 12/31/07 | |||
Net Sales | $360,000 | ||
Cost of goods sold | 184,000 | ||
Gross profit | 176,000 | ||
Expenses | |||
Interest Expense | $21,000 | ||
Selling Expense | 30,000 | ||
Administrative Expenses | 20,000 | ||
Total expenses | 71,000 | ||
Income before income taxes | 105,000 | ||
Income tax expense | 30,000 | ||
Net Income | $75,000 | ||
Additional Information:
- Cash dividends of $50,000 were declared and paid in 2007.
- Weighted average number of shares of common stock outstanding during 2007 were 62,000 shares.
- Market value of common stock on December 31,2007 was $15 per share.
- Net cash provided by operating activities for 2007 was $65,000.
Using the financial statements and additional information, compute the following ratios for the Mugs Company for 2007. You need to label your ratios and show your calculations for maximum credit.
- Current ratio
- Return on common stockholders' equity
- Price-earnings ratio
- Inventory turnover ratio
- Average days in inventory
- Receivable turnover
- Average days to collect receivables
- Profit margin ratio
- Payout ratio
- Return on assets
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