Required

Working capital. (Round your answer to 2 decimal places.)

Current ratio. (Round your answer to 2 decimal places.)

Quick ratio. (Round your answer to 2 decimal places.)

Receivables turnover (beginning receivables at January, Year 3, were $54,000). (Round your answer to 2 decimal places.)

Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answer to the nearest whole number.)

Inventory turnover (beginning inventory at January 1, Year 3, was $160,000). (Round your answer to 2 decimal places.)

Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answer to the nearest whole number.)

Debt-to-assets ratio. (Round your answers to the nearest whole percent.)

Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Number of times interest was earned. (Round your answer to 2 decimal places.)

Plant assets to long-term debt. (Round your answer to 2 decimal places.)

Net margin. (Round your answer to 2 decimal places.)

Turnover of assets (average total assets in Year 3 is $547,000). (Round your answer to 2 decimal places.)

Return on investment (average total assets in Year 3 is $547,000). (Round your answer to 2 decimal places.)

Return on equity (average stockholders’ equity in Year 3 is $299,700). (Round your answer to 2 decimal places.)

Earnings per share (total shares outstanding is unchanged). (Round your answer to 2 decimal places.)

Book value per share of common stock. (Round your answer to 2 decimal places.)

Price-earnings ratio (market price per share: Year 3, $12.75; Year 4, $14.50). (Round your intermediate calculations to 2 decimal places and your final answer to the nearest whole number.)

Dividend yield on common stock. (Round your answer to 2 decimal places.)

Based on the ratios calculated, comment on the Company’s performance in the following areas. Compare the changes between years.

Liquidity

Solvency

Management’s Effectiveness

The Company’s Position in the Stock Market

 

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Assets Current Assets Cash ALLENDALE COMPANY Balance Sheets As of December 31 Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10,4% cumulative, non- participating: 8,000 shares 28 authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) C Year 4 146,000 25.000 $ 26,000 $22,000 8,000 22,000 61,000 53,000 154,000 10.000 247,000 25,000 265,000 250,000 30,000 25,000 607,000 547,000 280,000 32,000 D Year 3 47,600 19,300 83,800 70,000 23.000 17.000 154.400 106.300 80,000 120,000 12,000 26.000 21.000 146.000 141.000 300.400 247.300 29 30 Retained earnings 31 Total stockholders' equity 306.600 32 Total liabilities and stockholders' equity 607,000 80,000 80,000 80,000 146.600 139.700 299.700 547,000 E F Revenues H Expenses Sales (net) Other revenues ALLENDALE COMPANY Statements of Income and retained Earnings For the Years Ended December 31 Year 4 Total revenues Cost of goods sold Selling, general, and administrative Interest expense Income tax expense Total Expenses J Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 215,000 75,000 14,000 123.000 427.000 15,000 139,700 K $430,000 $410,000 12.000 9.000 442.000 419.000 3,200 4.900 146,600 Year 3 163,000 70,000 13,200 122.000 368.200 50,800 97,000 3,200 4.900 139,700