or Al V. Quantum PORCY. Mastery Problems 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 company's financial statements. You take the bets Match each computation to one of the liquidity and solvency mentures in the table. (Mint tegin by looking for simple computations and Identifying the amounts in the computation Look for other metures that use those amounts. Liquidity and Solvency Measures Computations Working capital 23.09.000 500.000 Current ratie 1993.000.- 5900.000 Quicy ratio 51,000,000 $900.000 Accounts receivable turnover 30.2.5.0.0.0.0.274.000 740,000 2 Number of days sin receivables 1974.000 740.000 250.000 Inventory turnover 100.000 1.022.000 31.100.000 Number of days' sales in inventory 161022000X5109.000124.100.000 Ratio of fedts to long-term bites 22000X00.000.000 No of silities to stockholders equity 32.990.00034012000 Tumes interest earned (1970, 500SP200051222.000 0 O TIT 87F 10 PM W2022 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 identify other amounts for the balance sheet on the Profitability Measures part. If you have a choice of the amounts, assume the first amount in the ratio is for the end of the year. Compute any missing amounts Balance Sheet December 31, 2016 Assets Current assets: Cash 3823,000 Marketable securities Accounts receivable (net) Inventory Prepaid expenses Total current assets Long term investments Property, plant, and equipment (net) Total Assets Liabilities Current abilities Long-term labies TOC current Assets Long-term investments Property, plant, and equipment (net) Total Assets Labilities Current abilities Long-term laboties Total liabi Stockholders' Equity Preferred stock 510 par Common stock, 55 par Retained earnings Total stockholders' equity LIIT! Total liabilities and stockholders equity Prontability Measures Match each computation to one of the profitability measures in the table Profitability Measures Computations Asset turnover 58250.0005282.000 55.599.0002 Return on total assets ($750,000 $122.000 (50.607.000 + $6,417,0002 Return on stockholders' equity $780.100.154,012.000 + $3,131.1502) Return on common stockholders' equity $786 300 - 505.00053529,500.388,320221 Earings per share on common stock (5786300 65.000 250.000 shares Price-camnings ratio 55105 ov Dividends per share $175.000 250.000 shares Dividend yield 50.70 = $35 www Look for the computacions and match them to rotos that are mated to each other by the amounts in the computations and consider how they are related to an inte computations. Not that two of the computation usesham Comparative Income Statement I 87"F 831P 516/20 Maps Insuror Ads Vieb.. JNE Quantum Policy 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 Monturen part, Compute any missing amounts and complete the horizontal analysis columns, Enter percentages os decimal amounts, rounded to one decimal place. When rounding Jook only at the figure to the right of one decimal place, I
