Raridan Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Raridan Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account). Cost of goods sold.... Gross margin. Selling and administrative expense.. Net operating income. Interest expense. Net income before taxes.. Income taxes (30%) Net income a. Working Capital b. Current ratio. c. Acid-test ratio d. Average collection period e. Average sales period f. Times interest earned $1,900 1.330 Required: 1. Using the Income Statement from Raridan present the Balance Sheet and Income Stat and for YEAR 2 ONLY in common-size format 2. Compute the following ratios for Year 2: g. Debt-to-equity ratio h. Gross Margin percentage 570 220 350 30 320 96 $224 11. Financial statements for Raridan Company appear below: Raridan Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Current assets: Cash and marketable securities. Accounts receivable, net Inventory. Prepaid expenses. Total current assets. Noncurrent assets: Plant & equipment, net Total assets. Current liabilities: Accounts payable.. Accrued liabilities Notes payable, short term Total current liabilities... Noncurrent liabilities: Bonds payable..... Total liabilities Stockholders' equity: Preferred stock. $10 par, 5%.. Common stock, $10 par. Additional paid-in capital--common stock. Retained earnings Total stockholders' equity.. Total liabilities & stockholders' equity.. Year 2 Year 1 $ 140 $ 140 190 170 100 110 70 70 500 490 1.540 1.520 $2.040 $2.010 $ 110 $ 110 50 40 110 110 270 260 280 550 300 560 120 200 120 200 260 260 910 870 1.490 1.450 $2,040 $2.010 Raridan Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account). Cost of goods sold.... Gross margin. Selling and administrative expense.. Net operating income. Interest expense. Net income before taxes.. Income taxes (30%) Net income a. Working Capital b. Current ratio. c. Acid-test ratio d. Average collection period e. Average sales period f. Times interest earned $1,900 1.330 Required: 1. Using the Income Statement from Raridan present the Balance Sheet and Income Stat and for YEAR 2 ONLY in common-size format 2. Compute the following ratios for Year 2: g. Debt-to-equity ratio h. Gross Margin percentage 570 220 350 30 320 96 $224 11. Financial statements for Raridan Company appear below: Raridan Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Current assets: Cash and marketable securities. Accounts receivable, net Inventory. Prepaid expenses. Total current assets. Noncurrent assets: Plant & equipment, net Total assets. Current liabilities: Accounts payable.. Accrued liabilities Notes payable, short term Total current liabilities... Noncurrent liabilities: Bonds payable..... Total liabilities Stockholders' equity: Preferred stock. $10 par, 5%.. Common stock, $10 par. Additional paid-in capital--common stock. Retained earnings Total stockholders' equity.. Total liabilities & stockholders' equity.. Year 2 Year 1 $ 140 $ 140 190 170 100 110 70 70 500 490 1.540 1.520 $2.040 $2.010 $ 110 $ 110 50 40 110 110 270 260 280 550 300 560 120 200 120 200 260 260 910 870 1.490 1.450 $2,040 $2.010
Expert Answer:
Answer rating: 100% (QA)
Answer Raridan Company Balance Sheet as of December 31 Year 2 As... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
In its income statement for the year ended December 31, 2010, Maris Company reported the following condensed data. Instructions (a) Prepare a multiple-step income statement. (b) Calculate the profit...
-
In its income statement for the year ended December 31, 2014, Michael Company reported the following condensed data. Instructions (a) Prepare a multiple-step income statement. (b) Prepare a...
-
The condensed single-step income statement for the year ended December 31, 2014, of Conti Chemical Company, a distributor of farm fertilizers and herbicides, follows. Selected accounts from Conti...
-
Nu-Look Design, Inc., operated as a residential home improvement company. During calendar years 1996, 1997, and 1998, Ronald A. Stark not only was Nu-Looks sole shareholder and president but also...
-
Gary Cunningham is uncertain about the control features of a bank account. Explain the control benefits of (1) A check (2) A bank statement.
-
Victoria Falls on the Zambezi River is 108 m high, and 1088 m 3 of water pours over it every second. Assuming no loss in energy, what is the rise in temperature of the water due to the drop?
-
The following table shows SeaWest Fabrications projected net sales, purchases, and cash payments for expenses for 20X3. Additional information is as follows: a. Actual amounts for the fourth quarter...
-
The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub. (a) Near which map coordinates should the hub be located? (b)...
-
Your firm has a credit rating of A . You notice that the credit spread for five - year maturity A debt is 8 9 basis points left parenthesis 0 . 8 9 % right parenthesis. Your firm's five - year debt...
-
Retro Productions Ltd. is a Vancouver-based furniture manufacturer. The company reported the following information on its trial balance for 11 months of the year ended November 30, 2018. Retro...
-
During the political season we see a number of different surveys and polls. How do we know whether they are legitimate or not. The survey might be paid for by one party or the other and reflect a...
-
from the top of a coconut tree that is 20 m tall, a dog is spotted at an angle of depression of 15 degrees. how far away is the dog from the base of the tree?
-
ELECTIONS In the last election, (3)/(8) of the voters in Gurgaon voted for the incumbentmayor. If 424 people voted in Gurgaon inthe last election, how many voted forthe incumbent mayor?
-
There are 12 wolves in the park at the start of the summer. Each year the population grows by a factor of 1.5. After 10 years how many wolves will be in the park?
-
Then classify the polynomial as constant, linear, quadratic, cubic, or quartic. g(x)=-(1)/(6)x^(2)-4x+8 The leading term of the polynomial is (Use integers or fractions for any numbers in the...
-
On January 4, 20x2, you conducted a surprise count in connection with your audit of the financial statements of Theo Corp. for the year ended December 31, 20x1. The following were identified on your...
-
You have been tasked to manage the inventory at your company. Your boss thinks that inventory management is out of control, but is not sure and wants you to perform some analysis of the inventory and...
-
Make an argument that Williams had a right to delay the closing until after August 1.
-
Jenna Lindsay works at College of Boston and is paid $40 per hour for a 40-hour workweek and time-and-a-half for hours above 40. Requirements 1. Compute Lindsays gross pay for working 54 hours during...
-
Goldman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.7 pound per glass at a cost of $0.30 per pound. The actual result for one months production of...
-
Ten Toes Co. produces sports socks. The company has fixed costs of $75,000 and variable costs of $0.75 per package. Each package sells for $1.50. Requirements 1. Compute the contribution margin per...
-
A few days after the inventory control system for Revlon, the cosmetics giant, went down, officials discovered that Logisticon, a software developer, caused the downtime. Seven months earlier, Revlon...
-
Improved computer security measures create their own set of problems: user antagonism, sluggish response time, and hampered performance. Many professionals believe that the most effective way to...
-
Which of the following is/are methods of reducing fraud losses once fraud has occurred? (There may be more than one right answer.) a. insurance b. regular backup of data and programs c. contingency...
Study smarter with the SolutionInn App