Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SNIDER CORPORATION Balance Sheet December 31, 20X1 Assets Current assets: Cash $ 53,400 Marketable securities 21,100 Accounts receivable (net) 253,000 Inventory 261,000 Total current assets

SNIDER CORPORATION Balance Sheet December 31, 20X1
Assets
Current assets:
Cash $ 53,400
Marketable securities 21,100
Accounts receivable (net) 253,000
Inventory 261,000
Total current assets $ 588,500
Investments 64,300
Plant and equipment $673,000
Less: Accumulated depreciation 286,000
Net plant and equipment 387,000
Total assets $ 1,039,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 98,300
Notes payable 70,100
Accrued taxes 13,800
Total current liabilities $ 182,200
Long-term liabilities:
Bonds payable 154,100
Total liabilities $ 336,300
Stockholders' equity
Preferred stock, $50 par value $ 100,000
Common stock, $1 par value 80,000
Capital paid in excess of par 190,000
Retained earnings 333,500
Total stockholders' equity $ 703,500
Total liabilities and stockholders' equity $ 1,039,800

SNIDER CORPORATION Income Statement For the Year Ending December 31, 20X1
Sales (on credit) $ 2,092,000
Cost of goods sold 1,341,000
Gross profit $ 751,000
Selling and administrative expenses 530,000 *
Operating profit (EBIT) $ 221,000
Interest expense 26,800
Earnings before taxes (EBT) $ 194,200
Taxes 82,500
Earnings after taxes (EAT) $ 111,700

*Includes $41,300 in lease payments.

Using the above financial statements for the Snider Corporation, calculate the following ratios.

a. Profitability ratios. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

image text in transcribed

b. Assets utilization ratios. (Do not round intermediate calculations. Round your answers to 2 decimal places.) image text in transcribed

c. Liquidity ratios. (Do not round intermediate calculations. Round your answers to 2 decimal places.) image text in transcribed d. Debt utilization ratios. (Do not round intermediate calculations. Input your debt to total assets answer as a percent rounded to 2 decimal places. Round your other answers to 2 decimal places.) image text in transcribed

Profit margin Return on assets investment) Return on equity Profitability Ratios 5.34% 10.74% 15.88% Receivable turnover Average collection period Inventory turnover Fixed asset turnover Total asset turnover Assets Utilization Ratios times days times times times Liquidity Ratios times Current ratio Quick ratio times Debt to total assets Times interest earned Fixed charge coverage Debt Utilization Ratios % times times

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

A One-Year Accounting Course Part 2

Authors: Trevor Gambling

1st Edition

0080130267, 9780080130262

More Books

Students also viewed these Accounting questions