Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please provide the correct answers for part k and part m! THORNTON COMPANY Balance Sheets As of Deceeber 31 Assets Current assets Cash Marketable securities
please provide the correct answers for part k and part m!
THORNTON COMPANY Balance Sheets As of Deceeber 31 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories prepaid items Total current assets Investments Plant (net) tand Total assots Year 4 Year 3 Liabilities and Stockholders': Equity Liabilities Current liabilities Notes payable Accounts payable 5alaries payable Total current liabilities Noneur rent liabilities Bonds payable other Total noncurrant-liabilities Total liabilities. \begin{tabular}{rr} 5,40,000 & 517,300 \\ 113,800 & 100,000 \\ 25,000 & 19,000 \\ \hline 178,800 & 136,300 \\ \hline \end{tabular} 5tockholders' equity Preferred stock, (par value 510, th cunulative, non-participating: 0,000 shares authorized and issued) Conmon atock (no par: 50,000 shares authorized; 10,000 shares issued) Retained earnings \begin{tabular}{rr} 140,000 & 140,000 \\ 31,000 & 26,000 \\ \hline 171,000 & 166,000 \\ \hline 349,800 & 302,300 \\ \hline \end{tabular} Required Calculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calcutating the ratios for Year 3 . Instead, use the number presented on the Year 3 balance sheet Note: Round ratio answers to 2 decimal places unless otherwise indicated. Required Calculate the following ratios for Year 4 and Year 3 . Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3 . Instead, use the number presented on the Year 3 balance sheel. Note: Round ratio answers to 2 decimal places unless otherwise indicated. a. Working capital. b. Current ratio. c. Quick ratio. d. Receivables turnovet (beginning receivables at January 1. Year 3 , were $50,000 ). e. Average days to collect accounts receivable. Note: Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number. f. Inventory turnover (beginning inventory at January 1, Year 3, was $156,000 ). 9. Number of days to sell inventory. Note: Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number. h. Debt-to-assets ratio. Note: Round your answers to the nearest whole percent. 1. Debt-to-equity ratio. j. Number of times interest was eamed. k. Plant assets to long-term debt. L. Net margin. m. Turnover of assets (average total assets in Year 3 is $551,600 ). n. Return on investment (average total assets in Year 3 is $551,600 ). o. Return on equity (average stockholders' equity in Year 3 is $249,300 ). p. Earnings per share flotal shares outstanding is unchanged). q. Book value per share of common stock. t. Price-eamings ratio (market price per share: Year 3,$12.55; Yeor 4, \$14.10). Note: Round your intermediate calculations and final answer to 2 decimal places. 5. Dividend yield on common stock. (x) Answer is complete but not entirely correct 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