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Shown below is selected information from the financial statements of Dickson, Inc., a retail furniture store. From the balance sheet: Cash $ 30,000 Accounts receivable
Shown below is selected information from the financial statements of Dickson, Inc., a retail furniture store.
From the balance sheet: | ||||||
Cash | $ | 30,000 | ||||
Accounts receivable | 150,000 | |||||
Inventory | 200,000 | |||||
Plant assets (net of accumulated depreciation) | 500,000 | |||||
Current liabilities | 150,000 | |||||
Total stockholders' equity | 300,000 | |||||
Total assets | 1,000,000 | |||||
From the income statement: | ||||||
Net sales | $ | 1,500,000 | ||||
Cost of goods sold | 1,080,000 | |||||
Operating expenses | 315,000 | |||||
Interest expense | 84,000 | |||||
Income tax expense | 6,000 | |||||
Net income | 15,000 | |||||
From the statement of cash flows: | ||||||
Net cash provided by operating activities (including interest paid of $79,000) | $ | 40,000 | ||||
Net cash used in investing activities | (46,000 | ) | ||||
Financing activities: | ||||||
Amounts borrowed | $ | 50,000 | ||||
Repayment of amounts borrowed | (14,000 | ) | ||||
Dividends paid | (20,000 | ) | ||||
Net cash provided by financing activities | 16,000 | |||||
Net increase in cash during the year | $ | 10,000 | ||||
Instructions
b. | Compute the following: (Round ratios to 1 decimal place.) |
d. | Compute the following ratios (assume that the year-end amounts of total assets and total stockholders' equity also represent the average amounts throughout the year). (Round your answers to 1 decimal place.) Please sovle and show each step |
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