Answered step by step
Verified Expert Solution
Question
1 Approved Answer
no explanation needed Comparative financial statement data of Sanfield, Inc., follow: (Click the icon to view the income statements.) (Click the icon to view the
no explanation needed
Comparative financial statement data of Sanfield, Inc., follow: (Click the icon to view the income statements.) (Click the icon to view the balance sheets.) 1. Market price of Sanfield's common stock: $53.13 at December 31,2020 , and $35.64 at December 31,2019 2. Common shares outstanding: 13,000,000 during 2020 and 13,000,000 during 2019 3. All sales are credit sales Read the requirements. Income statements Balance sheets \begin{tabular}{|c|c|c|c|c|c|c|} \hline 4 & \multicolumn{6}{|c|}{ (amounts in thousands) } \\ \hline 5 & & & 2020 & & 2019 & 2018 \\ \hline 6 & Assets & & & & & \\ \hline 7 & Current assets: & & & & & \\ \hline 8 & Cash & $ & 99,000 & $ & 100,000 & \\ \hline 9 & Accounts receivable & & 100,500 & & 107,500 & $99,000 \\ \hline 10 & Inventory & & 139,000 & & 181,000 & $158,200 \\ \hline 11 & Prepaid expenses & & 10,000 & & 6,500 & \\ \hline 12 & Total current assets & $ & 348,500 & $ & 395,000 & \\ \hline 13 & Property, plant, and equipment, net & & 207,000 & & 179,000 & \\ \hline 14 & Total assets & $ & 555,500 & $ & 574,000 & \\ \hline 15 & Liabilities & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline 14 & 4 Total assets & & 555,500 & & 574,000 & \\ \hline 15 & Liabilities & & & & & \\ \hline 16 & Current liabilities & $ & 212,500 & $ & 250,000 & \\ \hline 17 & Long-term liabilities & & 131,000 & & 67,000 & \\ \hline 18 & Total liabilities & $ & 343,500 & & 317,000 & \\ \hline 19 & Stockholders' equity & & & & & \\ \hline 20 & Preferred stock, 8% & $ & 85,000 & $ & 85,000 & \\ \hline 21 & Total common stockholders' equity & & 127,000 & & 172,000 & $188,000 \\ \hline 22 & Total stockholders' equity & & 212,000 & $ & 257,000 & \\ \hline 23 & & & & & & \\ \hline 24 & Total liabilities and equity & $ & 555,500 & $ & 574,000 & \\ \hline 25 & *Selected 2018 amounts & & & & & \\ \hline \end{tabular} Requirement 1. Compute the following ratios for 2020 and 2019. (Round all ratios to two decimal places.) Requirement 2. Decide (a) whether Sanfield's ability to pay debts and to sell inventory improved or deteriorated during 2020 and (b) whether the common stock appears to have increased or decreased. a. Sanfield's ability to pay its debts and to sell inventory during 2020. . The investment attractiveness of Sanfield's common stock appears to have Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started