Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 Balance Sheet - Two-Year Comparison Assets 2019 2018 Cash & Equivalents 336.818 319,978 Trade Accounts Receivable 134,569 127,841 Inventory 12.985 13,657 Other Current

image text in transcribed
image text in transcribed
Question 4 Balance Sheet - Two-Year Comparison Assets 2019 2018 Cash & Equivalents 336.818 319,978 Trade Accounts Receivable 134,569 127,841 Inventory 12.985 13,657 Other Current Assets 98,323 94,325 Total Current Assets 582695 555,801 Long-Term Investments 81.197 77,137 Net Fixed Assets 412.458 Intangible Assets 61,874 58,780 Other Non-Current Assets 78,390 74,471 Total Assets 1216614 1149939 Liabilities Accounts Payable 42.787 32,658 Notes Payable 88.247 83,835 Accrued Liabilities 532,506 530,190 Income Taxes Payable 10,014 9,115 Current Portion of Long-Term Debt 111,238 115,676 Total Current Liabilities 784,792 771,474 Long-Term Debt 281.809 263,352 76335 Other Long-Term Liabilities 55.000 36,000 Total Long-Term Liabilities 336,809 299,352 Total Liabilities 1,121,601 1,070,826 Equity Retained Earnings 95,01379,113 Total Equity 95,013 79,113 Total Liabilities and Equity 1,216,614 1.149,939 Statement of Income - Two-Year Comparison 2019 2018 8,797,422 7,756,268 Cost of Sales 345,879 300,456 Gross Profit 8,451,543 7,455,812 Operating Expenses 4,998,643 4,008,643 4.9986 Operating Profit 3.452,900 3,447,169 Other Income 0 Other Expenses 16,360 15.542 Earnings Before Interest and Taxes 3,436,540 3,431.627 Interest Expense 72,301 68.439 Earnings Before Taxes 3,364,239 3,363,188 Provision for Income Taxes 21,877 21.070 Net Income 3,342,362 3,342,118 Sales - Number of common shares outstanding 150,000 shares - Market price per share of common stock in 2019 was $45 per share and in 2018 was $42 per share. Requirements a) Prepare a Horizontal analysis of the balance sheet and income statement for the years 2019 and 2018. b) Compute the following ratios: 1. Current Ratio 2. Quick Ratio 3. Accounts Receivable Turnover 4. Days Sales in Receivables 5. Inventory turnover 6. Days' sales in Inventory 7. Percent Gross Profit 8. Profit Margin Ratio 9. Percent Rate of Return on Assets 10. Earnings per share 11. Price Earnings Ratio 12. Debt to Equity 13. Times Interest Earned 14. Debt ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Management Audit How To Create An Effective Management Team

Authors: Michael Craig-Cooper, Philippe De Backer

1st Edition

0273600044, 978-0273600046

More Books

Students also viewed these Accounting questions