P9-4 Nineteen measures of liquidity, solvency, and profitability The comparative financial statements of Tec Solutions Inc. are as follows. The ket price of Tec Solutions Inc. common stock was $89.75 on December 31, 2012, jPaid cash for mar- TEC SOLUTIONS INC. Comparative Income Statement er s in 33.2 For the Years Ended December 31, 2012 and 2011 2011 2012 $1,450,000 $1,940,000 15,000 $1,925,000 780,000 $1,145,000 $ 385,000 215,000 $600,000 $ 545,000 25,000 $ 570,000 115,000 $ 455,000 91,000 $364,000 Sales Sales returns and allowances Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses 10,000 $1,440,000 575,000 $ 865,000 $ 365,000 200,000 $565,000 $ 300,000 Total operating expenses Income from operations 43,000 $343,000 Other income 75,000 $ 268,000 40,000 $228,000 Other expense (interest) Income before income tax Income tax expense Net income Chapter Feancil Stunemert Analy TEC SOLUTIONS INC comparative Retained Eareings Statemen 365 For the Years Ended December 31, 2013 and 2011 s follows: Retained earnings, January 1 Add net income for year 2012 2011 s164.000 228000 96000 S81000 04.000 5745000 Total Deduct dividends On preferred stock s 5000 On common stock Total 40000 545000 5700,000 10.000 1.35.000 5381,000 Retained earnings, December 31 quick ratio. TEC SOLUTIONS INC Comparative Balance Sheat December 31, 2012 and 2011 atio Dec. 31, 2012 after each e columns, ion affects Assets Dec. 31, 2011 Current assets Cash Temporary investments Accounts recehvable (net) Inventories Prepaid expenses Total current assets S 175.000 s 200,000 292000 250,000 190,000 300,000 50.000 $ 965000 160.000 260.000 13,000 $ 925.000 100,000 875.000 $1.900,000 Long-term investments Property. plant, and equipment (net) Total assets 400.000 1,135,000 $2.500,000 Liabilities Current liabilities Long-term liabilities Mortgage note payable, 8 % , due 2020 Bonds payable, 10 % , due 2030 Total long-term liabilities S 200,000 5 419,000 S 500,000 750,000 $1,250,000 $1,450,000 $ 750,000 S 750,000 $1,169,000 Total liabilities Stockholders' Equity $ 100.000 $ 100,000 250,000 700.000 Preferred $5 stock, $100 par Common stock, $5 par Retained earnings Total stockholders'equity Total liabilities and stockholders' equity 250,000 381,000 $ 731.000 $1,050,000 $2,500,000 he mar- $1,900,000 -, 2012. Determine the following measures for 2012, rounding to one decimal place: 1. Working capital Instructions 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover . Number of days' sales in inventory dRatio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10 Number of times interest charges earned 11. Number of times preferred dividends earned 12.Ratio of net sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio share of common stock 18. Dividends per 19. Dividend yield
