Problem The comparative financial statements of Victor Audio Company are as follows. The market price of Victor Audio Company common stock was $105 on December 31, 2015. Instructions Determine the measures of solvency and profitability for the year 2015 shown on the following form. Round answers as follows: two digits for dollar amounts (dollars and cents), one digit after the decimal point for percents, and one digit after the decimal point for all other formulas. Current Assets Current Liabilities = Calculated Value Working capital: Ratio Numerator + Denominator = Calculated Value 2. Current ratio Quick ratio Sheet1 $ Victor Audio Company Comparative Income Statement Statement For the Years Ended December 31, 2016 and 2015 2016 Sales (all on account) $ 2,170,000 6 Sales returns and allowances 70,000 7 Net sales $ 2,100,000 8 Cost of goods sold 840,000 9 Gross profit $ 1,260,000 10 Selling expenses 410,000 11 Administrative expenses 305,000 12 Total operating expenses 715,000 13 Income from operations 545,000 $ 2015 1,960,000 60,000 1,900,000 770,000 1,130,000 370,000 290,000 660,000 470,000 $ $ . blank balsheet analysesBlank Calculation Moda Automatic Workboot statistica Income from operations Other income 545,000 20,000 565,000 104,000 461,000 41,000 420,000 470,000 15,000 485,000 72,000 413,000 401,000 5 Other expense (interest) 7 Income before income tax 8 Income tax expense 19 Net income TS 35,000 S $ 378,000 of 5 GT3 Victor Audio Company Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 blank balsheet analyses Blank in Mode Automatic Workhaot Statistice Victor Audio Company Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 ULUI Dec. 31, 2016 $ 394,000 420,000 814,000 Dec. 31, 2015 $ 50,000 378,000 $ 428,000 8 Retained earnings, January 1 9 Add net income for year 30 Total 31 Deduct dividends: On preferred stock 33 On common stock Total 35 Retained earnings, December 31 $ 30,000 16,000 46,000 768,000 18,000 16,000 34,000 394,000 S $ $_ Dec. 31, 2015 45 Victor Audio Company Comparative Balance Sheet For the Years Ended December 31, 2016 and 2015 Assets Dec. 31, 2016 Current assets: Cash 87,000 Marketable securities 258,000 Accounts receivable (net) 261,000 Inventories 212,000 Prepaid expenses 25,000 49 Total current assets 843,000 50 Long-term investments 1,000,000 51 Property, plant, and equipment (net) 1,675,000 52 Total assets $ 3,518,000 Liabilities 176,000 335,000 235,000 190,000 18,000 954,000 400,000 1,050,000 2,404,000 $ $ blank balsheet analysesBlank AB BC 52 Total assets s 3,518,000 $ 2,404,000 Liabilities 54 Current liabilities $ 450,000 $ 310,000 55 Long-term liabilities: 56 Mortgage note payable, 10%, due 2010 400,000 $ Bonds payable, 12%, due 2009 600,000 600,000 Total long-term liabilities $_ 1,000,000 $ 600,000 . 59 Total liabilities $ 1,450,000 $ 910,000 Stockholders' Equity 61 Preferred $8 stock, $100 par 500,000 300,000 62 Common stock, $10 par 800,000 800,000 63 Retained earnings 768,000 394,000 Total stockholders' equity 2,068,000 $ 1,494,000 65 Total liabilities and stockholders' equity $ 3,518,000 $ 2,404,000
