ORIOLE COMPANY Balance Sheets December 31 Assets 2022 2021 Cash $ 70,000 $69.000 Debt investments (short-term) 51,000 40,000 Accounts receivable 107.000 92,000 Inventory 234,000 167,000 Prepaid expenses 26,000 23,000 Land 135,000 135,000 184,000 Building and equipment (net) 261,000 Total assets $884,000 $710,000 $172,000 $106,000 66,000 52,000 Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2025 Common stock, $10 par 42,000 42,000 251,000 170,000 204,000 204,000 Retained earnings 149.000 136,000 Total liabilities and stockholders' equity $884,000 $710,000 Question 3 of 4 -/1 ORIOLE COMPANY Income Statements For the Years Ended December 31 2022 2021 Sales revenue $882,000 $781,000 Cost of goods sold 641,000 574,000 Gross profit 241,000 207,000 Operating expenses 190,000 160,000 Net Income $ 51,000 $47.000 Additional information: 1. Inventory at the beginning of 2021 was $117,000. 2. Accounts receivable (net) at the beginning of 2021 were $88,000. 3. Total assets at the beginning of 2021 were $631,000. 4. No common stock transactions occurred during 2021 or 2022. 5. All sales were on account. (a1) Compute the liquidity and profitability ratios of Oriole Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, eg, 15.50 and round all other answers to 1 decimal place, 23. 15.5. Round % change to decimal places, for eg. 1% and if % change is a decrease show the numbers as negative, e8. -1% or (1XU = (a1) Compute the liquidity and profitability ratios of Oriole Company for 2021 and 2022. (Round Curent ratio, Asset turnover and Earnings per share to 2 decimal places, eg. 15.50 and round all other answers to 1 decimal place, e.g. 15.5. Round % change to O decimal places, for eg. 1% and if % change is a decrease show the numbers as negative, eg.-1% or (1%).) 2021 2022 % Change LIQUIDITY Current ratio :1 :1 % Accounts receivables turnover times times % Inventory turnover times times % 2021 2022 % Change PROFITABILITY Proht margin % % % Asset turnover times times % Return on assets % % Earnings per share $ $ (b) = (b) Given below are three independent situations and a ratio that may be affected. For each situation compute the affected ratio (1) as of December 31, 2022, and (2) as of December 31, 2023, after giving effect to the situation (Round Debt to assets ratio to decimal places, es. 15 and round all other answers to 1 decimal place, es 15.5. Round change to decimal places, for eg 1% and if % change is a decrease show the numbers as negative, es -1% or (1%) Situation Ratio 1. 19,000 shares of common stock were sold at par on July 1, 2023. Net income for 2023 wa $55,000 Return on common stockholders' equity 2 Debt to assets ratio All of the notes payable were paid in 2023. All other abilities remained at their December 31 2022 levels. Total insets on December 31, 2023, were $885,000 The market price of common stock was $9 and $12 on December 31, 2022 and 2023 respectively 3 Price-carvings ratio 2022 2023 * Change % Return on common stockholders equity Debt to mets ratio Price earnings ratio times e Textbook and Media Assistance Used Save for Later Attempts: 0 of Sused Submit
