Problem 18-04A a-b

The following financial information is for Priscoll Company.

Problem 18-04A a-b

The following financial information is for Priscoll Company.

Priscoll Company

Balance Sheets

December 31

Assets

2020 2019

Cash $106,400 $98,800

Debt investments (short-term) 83,600 60,800

Accounts receivable 158,080 136,800

Inventory 349,600 250,800

Prepaid expenses 38,000 34,960

Land 197,600 197,600

Building and equipment (net) 395,200 281,200

Total assets $1,328,480 $1,060,960

Liabilities and Stockholders' Equity

Notes payable (short-term) $258,400 $182,400

Accounts payable 98,800 79,040

Accrued liabilities 60,800 60,800

Bonds payable, due 2023 380,000 258,400

Common stock, $10 par 304,000 304,000

Retained earnings 226,480 176,320

Total liabilities and stockholders' equity $1,328,480 $1,060,96

Priscoll Company

Income Statement

For the Years Ended December 31

2020 2019

Sales revenue $1,340,640 $1,200,800

Cost of goods sold 972,800 874,000

Gross profit 367,840 326,800

Operating expenses 288,800 253,840

Net income $79,040 $72,960

Additional information:

1.Inventory at the beginning of 2019 was $174,800

.2.Accounts receivable (net) at the beginning of 2019 were $130,720.

3.Total assets at the beginning of 2019 were $1,003,200.

4.No common stock transactions occurred during 2019 or 2020.

5.All sales were on account.

Indicate, by using ratios, the change in liquidity and profitability of Priscoll Company from 2019 to 2020.(Round Current ratio, Asset turnover and Earnings per share to 2 decimal places, e.g.1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

2019 2020

LIQUIDITY

Current ratio :1 :1

times times

Accounts receivable turnover

Inventory turnover times times

PROFITABILITY

Profit margin % %

Asset turnover times times

Return on assets % %

Earnings per share $ $