Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me and please show work. please show work. and make sure the answer is correct . please help me and thank you. Problem

please help me and please show work. please show work. and make sure the answer is correct . please help me and thank you. image text in transcribed
image text in transcribed
Problem 12 (30 Points) The financial statements of Spertramp Company appear below: Supertramp COMPANY Comparative Balance Sheet December 31 Assets Cash Debt investments Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets 2020 $ 25,000 20,000 50,000 140,000 170.000 $405.000 2019 $ 40,000 60,000 30.000 170,000 200.000 S500.000 Liabilities and stockholders equity Accounts payable $ 25,000 Short-term notes payable 40,000 Bonds payable 75,000 Common stock 160,000 Retained earnings 105.000 Total liabilities and stockholders' equity $405.000 Supertramp COMPANY Income Statement For the Year Ended December 31, 2020 $ 30,000 90,000 160,000 145,000 75.000 $500.000 $360,000 184.000 176,000 Net sales (all on credit) Cost of goods sold Gross profit Expenses Interest expense Selling expenses Administrative expenses Total expenses Income before income taxes Income tax expense Net income $11,000 30,000 20.000 61.000 115,000 35.000 S. 80.000 b. Additional information: a Cash dividends of $50,000 were declared and paid on common stock in 2020 Weighted average number of shares of common stock outstanding during 2020 was 50,000 shares Market price of common stock on December 31, 2020, was $16 per share Net cash provided by operating activities for 2020 was $70,000 C d Instructions Using the financial statements and additional information, compute the following ratios for the Supertramp Company for 2020. You Must show all computations 1. 2 3. 5. Current ratio Return on common stockholders' equity Price-earings ratio Inventory tumover Accounts receivable turnover Times interest earned Profit margin Days in inventory Payout ratio Return on assets 6. 7 8. 9 10

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman

2nd Canadian edition

978-0176721237, 978-0176530884

Students also viewed these Accounting questions