Question
Please help!!! Will Rate The following financial statements apply to Vernon Company: Year 2 Year 1 Revenues $ 221,500 $ 182,100 Expenses Cost of goods
Please help!!! Will Rate The following financial statements apply to Vernon Company:
Year 2 | Year 1 | ||||||
Revenues | $ | 221,500 | $ | 182,100 | |||
Expenses | |||||||
Cost of goods sold | 124,200 | 102,100 | |||||
Selling expenses | 20,000 | 18,000 | |||||
General and administrative expenses | 9,300 | 8,300 | |||||
Interest expense | 2,500 | 2,500 | |||||
Income tax expense | 19,800 | 16,500 | |||||
Total expenses | 175,800 | 147,400 | |||||
Net income | $ | 45,700 | $ | 34,700 | |||
Assets | |||||||
Current assets | |||||||
Cash | $ | 5,400 | $ | 6,700 | |||
Marketable securities | 2,100 | 2,100 | |||||
Accounts receivable | 35,300 | 30,600 | |||||
Inventories | 100,600 | 95,700 | |||||
Prepaid expenses | 4,700 | 3,700 | |||||
Total current assets | 148,100 | 138,800 | |||||
Plant and equipment (net) | 105,000 | 105,000 | |||||
Intangibles | 20,500 | 0 | |||||
Total assets | $ | 273,600 | $ | 243,800 | |||
Liabilities and Stockholders Equity | |||||||
Liabilities | |||||||
Current liabilities | |||||||
Accounts payable | $ | 38,700 | $ | 34,500 | |||
Other | 15,000 | 16,000 | |||||
Total current liabilities | 53,700 | 50,500 | |||||
Bonds payable | 64,200 | 65,200 | |||||
Total liabilities | 117,900 | 115,700 | |||||
Stockholders equity | |||||||
Common stock (41,000 shares) | 114,500 | 114,500 | |||||
Retained earnings | 41,200 | 13,600 | |||||
Total stockholders equity | 155,700 | 128,100 | |||||
Total liabilities and stockholders equity | $ | 273,600 | $ | 243,800 | |||
Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.06 and $4.92, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) l. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started