Problem 94 The following financial information is for Ivanhoe Company IVANHOE COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $ 70,000 $68,000 Debt investments (short-term) 51,000 40,000 Accounts receivable 104,000 89,000 Inventory 230,000 168,000 Prepaid expenses 22,000 28,000 Land 131,000 131,000 Building and equipment (net) 262,000 185,000 Total assets $870,000 $709,000 Liabilities and Stockholders' Equity Notes payable $171,000 $102,000 Accounts payable 67,000 52,000 Accrued liabilities 39,000 39,000 Bonds payable, due 2020 249,000 170,000 Level Common stock, $10 par 199,000 199,000 Retained earnings 145,000 147.000 otal abilities and stockholders' equity 5870,000 $709,000 vel IVANHOE COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue 5905,000 797.000 NANHOE COMPANY Income Statements For the Years Ended December 31 2017 Sales revenue $905,000 $797,000 Cost of goods sold 648,000 574,000 Gross profit 257,000 223,000 Operating expenses 191,000 159,000 Net income $ 66,000 $ 64,000 Additional Information: 1. Inventory at the beginning of 2016 was $116,000 2. Accounts receivable (net) at the beginning of 2016 were $88,000 3. Total assets at the beginning of 2016 were $634,000. 4. No common stock transactions occurred during 2016 or 2017 5. All sales were on account. Compute the liquidity and profitability ratios of Ivanhoe Company for 2016 and 2017. (Round current ratio, earnings per share and are turnover the places . 1.83 and all other answers to I decimal place, 1.8 or 1.89. It change is a decrease show the numbers as negative (1.83%).) decima or 2017 2016 % Change LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover times CALCULATOR STANDARD VIEW PRINTER VERSION BACK Compute the liquidity and profitability ratios of Ivanhoe Company for 2016 and 2017. (Round current ratio, earnings per share and asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 1.8% % change is a decrease show the numbers as negative ... -L839 or (1.83%).) 2017 2016 % Change LIQUIDITY Current ratio Accounts receivables turnover Inventory turnover 2017 PROFITABILITY Profit margin Asset Turnover Return on asets Earnings per share Dec d 2017 show the The following are three independent stations and a ratio that may be affected. For each situation, compute the affected ratio ( December 31, 2018, after giving effect to the situation. Howd all answers to decimal place or I change Situation 1, 2016. Net income for 2018 was $50,000 stochodutty Debt toast 13,000 shares of common store were sold at parony 2018 At December 31 valle were paid in 2018. All other sites remained at the same levels as at December CALCULATOR STANDARD VIEW PRINTER VERSION Earnings per share The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2017, and (2) as of December 31, 2018, after giving effect to the situation. (Round all answers to 1 decimal places, e.g. 1.8 or 1.8%. If change is a decrease show the numbers as negative, e.g.-1.83% or (1.83%).) Situation 1. 18,000 shares of common stock were sold at par on July 1, 2018. Net income for 2018 was $50,000 Ratio Return on common stockholders' equity Debt to assets ratio 2. All of the notes payable were paid in 2018. All other liabilities remained at the same levels as at December 31, 2018. At December 31, 2018, total assets were $877,000. 3. The market price of common stock was $9 and 512 on December 31, 2017 and 2018, respectively. Net income for 2018 was $50,000. Price-earnings ratio 2018 2017 % Change Return on common stockholders' equity Debt to assets ratio Price earnings ratio tant Show Work
