ONE COMPLETE QUESTION C-F

c. Calculate the following liquidity ratios for 2018 and 2017: (1) working capital, (2) current ratio, (3) quick (acid-test) ratio, (4) accounts receivable turnover, (5) average days to collect receivables, (6) inventory turnover, and (7) average days to sell inventory. d. Calculate the following solvency ratios for 2018 and 2017 (1) debt to assets ratio, (2) debt to equity ratio, (3) number of times interest is earned, and (4) plant assets to long-term liabilities. e. Calculate the following profitability ratios for 2018 and 2017 (1) net margin, (2) asset turnover, (3) return on investment, and (4) return on equity. f. Calculate the following stock market ratios for 2018 and 2017: (1) earnings per share, (2) book value per share, (3) price-earnings ratio, and (4) dividend yield. Rosson Company Income Statement Years ended 2017 and 2018 2018 2017 $246,000 $299,000 8,000 307,000 9,000 255,000 172,000 138,000 Revenues Net Sales Other Revenues Total Revenues... Expenses: Cost of Goods Sold S,G&A Expenses.... Interest Expense Income Tax Expense Total Expenses... Income Before Discontinued Operations Discontinued Operations Gain (net of tax) 40,000 44,000 4,000 4,500 31,000 25,400 251,000 207,900 56,000 47,100 9,000 0 5,G&A Expenses 44,000 40,000 4,000 4,500 Interest Expense Income Tax Expense 31,000 25,400 251,000 207,900 Total Expenses... Income Before Discontinued Operations Discontinued Operations Gain (net of tax) 56,000 47,100 9,000 0 Net Income $ 65,000 $ 47,100 Rosson Company Balance sheet Years ended 2017 and 2018 Assets Current Assets: Cash $ 7,500 $ 12,500 1,000 1,500 50,000 47,500 150,000 145,000 Marketable Securities Accounts Receivable Inventories. Prepaid Expenses Total Current Assets Plant and Equipment (net). 5,000 2,500 213,500 209,000 147,000 157,000 30,500 0 Intangibles $391,000 $366,000 Total Assets Total Assets $391,000 $366,000 Liabilities and Stockholders' Equity Liabilities: $ 58,000 $ 79,500 25,000 22,500 Current Liabilities: Accounts Payable. Other Accrued Liabilities Total Current Liabilities Bonds Payable.... Total Liabilities 83,000 102,000 90,000 100,000 173,000 202,000 130,000 130,000 Stockholders' Equity: Common Stock ($5 par) Paid-In Capital in Excess of Par of Par 20,000 20,000 68,000 14,000 Retained Earnings.......... Other Accrued Liabilities. 25,000 22,500 83,000 102,000 Total Current Liabilities Bonds Payable..... Total Liabilities 90,000 100,000 173,000 202,000 130,000 of Par 20,000 130,000 20,000 14,000 68,000 Stockholders' Equity Common Stock ($5 par) Pald-In Capital in Excess of Par..... Retained Earnings ........ Total Stockholders' Equity. Total Liabilities and Stockholders Equity Common stock market price at year-end 218,000 164,000 $391,000 $366,000 $14.00 $8.55 **Dividend payments amounted to $11.000 in 2018 and $5,000 in 2017 c. Calculate the following liquidity ratios for 2018 and 2017: (1) working capital, (2) current ratio, (3) quick (acid-test) ratio, (4) accounts receivable turnover, (5) average days to collect receivables, (6) inventory turnover, and (7) average days to sell inventory. d. Calculate the following solvency ratios for 2018 and 2017 (1) debt to assets ratio, (2) debt to equity ratio, (3) number of times interest is earned, and (4) plant assets to long-term liabilities. e. Calculate the following profitability ratios for 2018 and 2017 (1) net margin, (2) asset turnover, (3) return on investment, and (4) return on equity. f. Calculate the following stock market ratios for 2018 and 2017: (1) earnings per share, (2) book value per share, (3) price-earnings ratio, and (4) dividend yield. Rosson Company Income Statement Years ended 2017 and 2018 2018 2017 $246,000 $299,000 8,000 307,000 9,000 255,000 172,000 138,000 Revenues Net Sales Other Revenues Total Revenues... Expenses: Cost of Goods Sold S,G&A Expenses.... Interest Expense Income Tax Expense Total Expenses... Income Before Discontinued Operations Discontinued Operations Gain (net of tax) 40,000 44,000 4,000 4,500 31,000 25,400 251,000 207,900 56,000 47,100 9,000 0 5,G&A Expenses 44,000 40,000 4,000 4,500 Interest Expense Income Tax Expense 31,000 25,400 251,000 207,900 Total Expenses... Income Before Discontinued Operations Discontinued Operations Gain (net of tax) 56,000 47,100 9,000 0 Net Income $ 65,000 $ 47,100 Rosson Company Balance sheet Years ended 2017 and 2018 Assets Current Assets: Cash $ 7,500 $ 12,500 1,000 1,500 50,000 47,500 150,000 145,000 Marketable Securities Accounts Receivable Inventories. Prepaid Expenses Total Current Assets Plant and Equipment (net). 5,000 2,500 213,500 209,000 147,000 157,000 30,500 0 Intangibles $391,000 $366,000 Total Assets Total Assets $391,000 $366,000 Liabilities and Stockholders' Equity Liabilities: $ 58,000 $ 79,500 25,000 22,500 Current Liabilities: Accounts Payable. Other Accrued Liabilities Total Current Liabilities Bonds Payable.... Total Liabilities 83,000 102,000 90,000 100,000 173,000 202,000 130,000 130,000 Stockholders' Equity: Common Stock ($5 par) Paid-In Capital in Excess of Par of Par 20,000 20,000 68,000 14,000 Retained Earnings.......... Other Accrued Liabilities. 25,000 22,500 83,000 102,000 Total Current Liabilities Bonds Payable..... Total Liabilities 90,000 100,000 173,000 202,000 130,000 of Par 20,000 130,000 20,000 14,000 68,000 Stockholders' Equity Common Stock ($5 par) Pald-In Capital in Excess of Par..... Retained Earnings ........ Total Stockholders' Equity. Total Liabilities and Stockholders Equity Common stock market price at year-end 218,000 164,000 $391,000 $366,000 $14.00 $8.55 **Dividend payments amounted to $11.000 in 2018 and $5,000 in 2017