Question 19 The financial statements of Novak Company appear below: NOVAK COMPANY Comparative Balance Sheet December 31 2022 2021 Assets Cash $ 23,000 $ 41,000 Debt investments 21,500 53,400 Accounts receivable (net) 57,300 25,800 Inventory 136,000 177,000 Property, plant and equipment (net) 172,000 195,000 Total assets $409,800 $492,200 Liabilities and stockholders' equity Accounts payable $ 24,300 $ 34,000 Short-term notes payable 45,000 94,900 Bonds payable 72,600 160,700 Common stock 161,900 120,800 Retained earnings 106,000 81,800 Total liabilities and stockholders' equity $409,800 $492.200 NOVAK COMPANY Income Statement For the Year Ended December 31, 2022 Niet sales Calon credit) $352,000 Cost of goods sold 184,000 Gross profit 168,000 Expenses Interest expense $12,000 Selling expenses 31,000 Administrative expenses 24.000 ES st NOVAK COMPANY Income Statement For the Year Ended December 31, 2022 Net sales (all on credit) $352,000 Cost of goods sold 184,000 Gross profit 168,000 Expenses Interest expense $12,000 Selling expenses 31,000 Administrative expenses 24,000 Total expenses 67,000 Income before income taxes 101,000 Income tax expense 36,000 tiet income $ 65,000 Additional information: a. Cash dividends of $61,600 were declared and paid on common stock in 2022 b. Weighted average number of shares of common stock outstanding during 2022 was 61,600 shares c. Market price of common stock on December 31, 2022, was $17 per share d. Net cash provided by operating activities for 2022 was $3,900. Using the financial statements and additional information, compute the following ratios for the Novak Company for 2022. (Round all answers to 2 de 1. Current ratio 11 2. Return on common stockholders equity 96 3. Price-eamingsratio 4. Inventory tumover times by Stade 5. Accounts receivable turnover times a. Cash dividends of $61,600 were dedared and paid on common stock in 2022 b. Weighted average number of shares of common stock outstanding during 2022 was 61,600 shares. C. Market price of common stock on December 31, 2022, was $17 per share. d. Net cash provided by operating activities for 2022 was $83,900. Using the financial statements and additional information, compute the following ratios for the Novak Company for 2022. (Round all answers to 2 decimal places, .. 1.8 or 12.619) 1. Current ratio 11 2. Return on common stockholders' equity 3. Price earnings ratio times 4. Inventory turnover times 5. Accounts receivable turnover times 6. Times interest earned 7. Profit margin 8. Average days in inventory days 9. Payout ratio 10. Return on assets Click if you would like to show Work for this question en Show Work
