N Netflix X D2L Homepage - 2 X Question 1 - N X M (no subject) - x X pDE Management x Chapter13.pdf X Course Hero x Q Paul Sabin org X *[Solved] Paul s x + X -> C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q to Sign in . . . Module 8 Chapter 13 Saved Help Save & Exit Submit Check my work SABIN ELECTRONICS Comparative Income Statement This Year Last Year Sales $ 4,200,006 $ 3, 650,006 10 Less: Cost of goods sold 3, 227, 000 2, 880, 000 O Gross margin 973, 000 70, 000 points Less: Operating expenses 546, 000 457,000 Net operating income 427, 000 $13, 000 Skipped Less: Interest expense 36, 000 36,000 + Net income before taxes 391, 090 77,000 Less: Income taxes (30%) 117, 300 83, 100 Net income 273, 700 193,900 Dividends paid: Book Preferred dividends 20, 000 20,000 Common dividends 5, 600 62,700 Total dividends paid 95, 600 82,700 Net income retained 178, 100 111, 200 Print Retained earnings, beginning of year 566, 400 455, 200 Retained earnings, end of year 744, 500 566, 400 n References During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 2/10, n/30. All sales are on account. Assume that the following ratios are typical of firms in the electronics industry: Current ratio 2.5 to 1 Acid-test (quick) ratio 1.3 to 1 Average age of receivables 18 days Inventory turnover in days 60 days Debt-to-equity ratio 0.90 to 1 Times interest earned 6.0 times Return on total assets 13% Price-earnings ratio 12 Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year (Use 365 days a year. Round your intermediate calculations to 1 decimal place. Round Debt-to-equity ratio to 3 decimal places and other answers to 2 decimal places.): a. The amount of working capital. b. The current ratio. c. The acid-test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last year totalled $186,000). ED Mc Hill Type here to search O EN 16.C Mostly cloudy A - DO ( ) ENG 7:05 PM 11/6/2022N Netflix X D2L Homepage - 2 X Question 1 - N X M (no subject) - X X DD Management x Chapter13.pdf X Course Hero x Q Paul Sabin org X *[Solved] Paul s x + X -> C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q to Sign in . . . Module 8 Chapter 13 Saved Help Save & Exit Submit Check my work Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year (Use 365 days a year. Round your intermediate calculations to 1 decimal place. Round Debt-to-equity ratio to 3 decimal places and other answers to 2 decimal places.): 10 O points a. The amount of working capital. b. The current ratio. Skipped c. The acid-test (quick) ratio. + d. The average age of receivables (the accounts receivable at the beginning of last year totalled $186,000). e. The inventory turnover in days (the inventory at the beginning of last year totalled $372,000). f. The debt-to-equity ratio. g. The times interest earned. Book This Year Last Year Print Working capital $ 613,000 $ 185,000 Current ratio 1.91 to 1 1.37 to 1 n Acid-test ratio 0.69 to 1 0.59 to 1 References Average age of receivables days days Inventory turnover in days days days Debt-to-equity ratio to 1 to 1 Times interest earned times times 2. For both this year and last year: (a) Present the balance sheet in common-size format. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place. SABIN ELECTRONICS Common-Size Balance Sheets This Year Last Year Current assets Cash % % Marketable securities Accounts receivable, net ED Mc Hill Type here to search EN 16.C Mostly cloudy 7:05 PM 11/6/2022N Netflix X D2L Homepage - 2 X Question 1 - N X M (no subject) - x X por Management x Chapter13.pdf X Course Hero x Q Paul Sabin org X *[Solved] Paul s x + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q to Sign in . . . Module 8 Chapter 13 i Saved Help Save & Exit Submit Check my work 2. For both this year and last year: (a) Present the balance sheet in common-size format. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.) 10 O points SABIN ELECTRONICS Common-Size Balance Sheets Skipped This Year Last Year + Current assets: Cash % % Book Marketable securities Accounts receivable, net Inventory Print Prepaid expenses Total current assets Plant and equipment, net References Total assets 0.0 % 0.0 % Current liabilities % % Bonds payable, 12% Total liabilities 0.0 Shareholders' equity: Preferred shares, no par, $6 Common shares, no par Retained earnings Total shareholders' equity 0.0 0.0 Total liabilities and equity 0.0 % 0.0 % (b) Present the income statement in common-size format down through net income. (Input all values as positive values. Round your answers to 1 decimal place.) SABIN ELECTRONICS ED Mc Hill Type here to search O EN 16C Mostly cloudy A - DO GENG 7:05 PM 11/6/2022N Netflix X D2L Homepage - 2 X Question 1 - N X M (no subject) - x X por Management x Chapter13.pdf X Course Hero x Q Paul Sabin org X *[Solved] Paul s x + X -> C @ https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q to Sign in . . . Module 8 Chapter 13 Saved Help Save & Exit Submit Check my work Bonds payable, 12% Total liabilities 0.0 0.0 Shareholders' equity: Preferred shares, no par, $6 10 O points Common shares, no par Retained earnings Skipped Total shareholders' equity 0.0 0.0 + Total liabilities and equity 0.0 % 0.0 % Book Print (b) Present the income statement in common-size format down through net income. (Input all values as positive values. Round your answers to 1 decimal place. n References SABIN ELECTRONICS Common-Size Balance Sheets This Year Last Year Sales % % Less cost of goods sold Gross margin Less operating expenses Net operating income Less interest expense Net income before taxes Less income taxes Net income 3. This part of the question is not part of your Connect assignment. ED Mc Hill Type here to search O EN 16.C Mostly cloudy A - DO ( ENG 7:06 PM 11/6/2022N Netflix X D2L Homepage - 2 X Question 1 - N X M (no subject) - x X por Management x Chapter13.pdf X Course Hero x Q Paul Sabin org X *[Solved] Paul s x + X -> C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q to Sign in . . . Module 8 Chapter 13 Saved Help Save & Exit Submit Check my work Paul Sabin organized Sabin Electronics 10 years ago in order to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $500,000 long-term loan from Gulfport State Bank, $100,000 of which will be used to bolster the cash account and 10 $400,000 of which will be used to modernize certain key items of equipment. The company's financial statements for the two most O points recent years follow: Skipped SABIN ELECTRONICS + Comparative Balance Sheet This Year Last Year Assets Current assets: Book Cash 57,400 94, 000 Marketable securities 11, 200 Accounts receivable, net 401, 800 188,000 Inventory 305,000 376,000 Print Prepaid expenses 16, 800 13, 800 Total current assets 1, 281, 000 683,000 Plant and equipment, net 1, 060,000 867,000 Total assets $2, 281, 000 1, 550,000 References Liabilities and Shareholders' Equity Liabilities: Current liabilities $ 668, 000 498, 000 Bonds payable, 12% 300,000 800, 000 Total liabilities 968, 060 798,000 Shareholders' equity: Preferred shares, no par ($6; 16,720 shares issued) 209,000 209,000 Common shares, no par (unlimited authorized, 22,000 issued) 220,000 220,000 Retained earnings 884,000 323,000 Total shareholders' equity 1, 313, 000 752,000 Total liabilities and shareholders' equity $2, 281, 000 $ 1,550, 000 SABIN ELECTRONICS Comparative Income Statement This Year Last Year Sales $ 4, 200, 000 $ 3, 650,000 Less: Cost of goods sold 3, 227, 000 2, 880, 000 Gross margin 973, 000 770, 000 Less: Operating expenses 546, 000 457,000 Net operating income 427,00 13, 000 Less: Interest expense 36, 000 36,000 Net income before taxes 391, 000 277,000 Less: Income taxes (30%) 117, 300 83, 100 Net income 273, 700 193,900 Dividends paid: Preferred dividends 20, 090 20,000 Common dividends 75, 600 62,700 Mc Hill Type here to search O EN 16.C Mostly cloudy A - go ) ENG 7:04 PM 11/6/2022