PROBLEM 15-11 Common-Size Statements and Financial Ratios for Creditors LO1, LO3, LO4 Moderm Building Supply sells various building materials to retail outlets. The company approached Linden State Bank requesting a $300,000 loan to strengthen the Cash account and to pay certain pressing short-term obligations. The company's financial recent two years follow statements for the most Assets Current assets: Cash.. s90cco $200, 650,000 400,000 Inventory 1,300,000 800,0 20,000 20,000 Prepaid expenses Total curront assets Plant and equipment, net. Total assets Liabilities and Stockholders' Equity Liabilities: 2060,000 1470.000 1,940.0001,830,000 $4,000,000 $3,300,000 Current ilabilties.was:..." Bonds payable, 12%- 750,000 750,000 1.850000 1.350,000 200,000200,000 1 450,000 1,250,000 Total liabildes Stookholders equity Preferred stock, $50 par, 8%. ole-ins 500,000500 Retained earmings 2,150,000 1.950,000 Total stockholders equity Total lablilfies and stookhoider's equity.... $4000,000 $3,300,000 $7000,000 $5,000,000 5.400,000 4,800,000 Sales Cost of goods sold Gross margin 600,000 1,200 970,000 710,000 Net operating income Interest expense 630,000 490,000 90,000 96,000 540,000 400,000 160,000 216,000 income taxes (40%) . Net income... Dividends paid: 9-000 240,000 16,000 16,000 Proferred Common dividends Total dividends paid.. Net income retained Retained earnings, beginningf year Retained earnings, end of year . 108,000 124,000 164,000 1 6.000 $1,450,000 $1,250,000 1250,000 Email Save