P11-10 (pg 514-515): Please Make sure that you show the formulas & computations in support of your answers; otherwise, you wil lose 50%scores.

P 1 1-10 The following data apply to items (a) through (8): JOHANSON COMPANY Statement of Financial Position December 31, 2010 and 201 1 2010 2011 (In thousands) Assets Current assets: $ 380 Cash and temporary investments $ 400 bolisisanjob to mom) Inomarups bus intel 1,500 Accounts receivable (net) 1,700 2, 120 Inventories 2, 200 4,000 Total current assets 4,300 sideveg alquooo Long-term assets: Land cost of fixed 500 500 Building and equipment (net) quints payable solidnil barnpod 4,000 4,700 Total long-term assets 4,500 5,200 Total assets $8,500 $9,500(In thousands) CHAPTER 1 1 . Expanded Analysis 515 Liabilities and Equities Current liabilities: 2010 2011 Accounts payable Current portion of long-term debt Total current liabilities Long-term debt $ 700 $1,400 500 1,000 Total liabilities 1,200 2,400 Stockholders' equity: 4,000 3,000 Common stock 5,200 5,400 Retained earnings Total stockholders' equity 3,000 3,000 Total liabilities and equities 300 1,100 3,300 4,100 $8,500 $9,500 JOHANSON COMPANY Statement of Income and Retained Earnings In thousands) For the Year Ended December 31, 201 1 Net sales Less: Cost of goods sold $28,800 Selling expenses $15,120 Administrative expenses 7,180 Interest 4,100 Income taxes 400 Net income 800 27,600 Retained earnings, January 1 1,200 Subtotal 300 1,500 Cash dividends declared and paid 400 Retained earnings, December 31 $ 1,100 Required Answer the following multiple-choice questions: a. The acid-test ratio for 2011 is 1. 1.1-to-1. 2. 0.9-to-1. $1,000 009 81 3. 1.8-to-1. 4. 0.2-to-1. 1090,1. 5. 0.17-to-1. b. The average number of days' sales outstanding in 2011 is 1. 18 days. 2. 360 days. 3. 20 days. 4. 4.4 days. 5. 80 days. c. The times interest earned ratio for 2011 is 1. 3.0 times. 2. 1.0 time. 3. 72.0 times. 4. 2.0 times. 5. 6.0 times. d. The asset turnover in 2011 is 1. 3.2 times. 2. 1.7 times. 3. 0.4 time. (con(P 1 1-10 CONTINUED) 4. 1.1 times. 5. 0.13 time. e. The inventory turnover in 2011 is 1. 13.6 times. 2. 12.5 times. 3. 0.9 time. 4. 7.0 times. 5. 51.4 times. f. The operating income margin in 2011 is 1. 2.7%. 2. 91.7%. 3. 52.5%. 4. 95.8%. 15. 8.3%. g. The dividend payout ratio in 2011 is 1. 100%. 2. 36%. 3. 20%. 4. 8.8%. (5. 33.3%. (CMA Adapted)