Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

RUNDLE COMPARY Income statements for the Years Ending December 3 1 Year 2 Year 1 Revenues Expenses Cost of aroods sold seiling expenses General and

RUNDLE COMPARY
Income statements for the Years Ending December 31
Year 2 Year 1
Revenues
Expenses
Cost of aroods sold
seiling expenses
General and adinistrative
expenses
Interest expense
Income tax expense
Total expenses
Net income
RUNDLE COMPANY
Ealance sheets As of December 31
Year 2
Year 1
Assets
Current essets
Cash
Marketable securities
Accounts recelvabie
Inventories
Prepald expenses
Total current assets
plant and equipment (net)
Intangibles
Total assets
Liablitties and stockholders" Equity
Liablifties
Current 11abilities
Accounts payable
other
Total current liablifties
Bonds payable
Total liabilities
Stockholders, equity
Common stock (48, Oes shares)
Retained earnings
Total stockholders, equity
Total liabilities and stockholders, equity
Required
calculating the ratios for 'Year 1. Instead, use the number presented on the Year 1 balance sheet.
Note: Round ratio answers to 2 declmel pleces unless otherwise Indicated.
a. Net margin.
b. Return on investment.
c. Return on equity.
d. Earnings per share.
e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.09 and $4.90. respectively).
Note: Round your Intermedlate calculations and final answers to 2 cleclmal places.
r. Book value per share of common stock.
Times interest earned.
h. Working capital.
i. Current ratio.
j. Quick (acld-test) ratio.
k. Accounts recelvable turnover.
I. Inventory turnover.
m. Debt-to-equity ratio.
n. Debt-to-assets ratio.
Note: Round your answers to the nearest whole percent.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamentals Of Business Mathematics In Canada

Authors: F. Ernest Jerome, Jackie Shemko

3rd Edition

1259370151, 978-1259370151

Students also viewed these Accounting questions