Question
Swifty Incorporated had the following transactions involving current assets and current liabilities during February 2022. Feb. 3 Collected accounts receivable of $16,000. 7 Purchased equipment
Swifty Incorporated had the following transactions involving current assets and current liabilities during February 2022.
Feb. 3 | Collected accounts receivable of $16,000. | |
7 | Purchased equipment for $27,600 cash. | |
11 | Paid $3,600 for a 1-year insurance policy. | |
14 | Paid accounts payable of $12,400. | |
18 | Declared cash dividends of $4,300. |
Additional information:
As of February 1, 2022, current assets were $134,190 and current liabilities were $49,700. |
Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.67.)
Current ratio | |||
---|---|---|---|
February 1 | enter the ratio | :1 | |
February 3 | enter the ratio | :1 | |
February 7 | enter the ratio | :1 | |
February 11 | enter the ratio | :1 | |
February 14 | enter the ratio | :1 | |
February 18 | enter the ratio | :1 |
Here is the income statement for Crane, Inc.
Crane, Inc. Income Statement For the Year Ended December 31, 2022 | ||
---|---|---|
Net sales | $424,000 | |
Cost of goods sold | 226,000 | |
Gross profit | 198,000 | |
Expenses (including $10,000 interest and $28,500 income taxes) | 101,000 | |
Net income | $ 97,000 |
Additional information:
1. | Common stock outstanding January 1, 2022, was 20,250 shares, and 24,250 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.) | |
2. | The market price of Crane stock was $20 on December 31, 2022 | |
3. | Cash dividends of $24,480 were declared and paid. |
Compute the following measures for 2022. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
(a) | Earnings per share | $enter a dollar amount rounded to 2 decimal places | |||
---|---|---|---|---|---|
(b) | Price-earnings ratio | enter a number of times rounded to 1 decimal place | times | ||
(c) | Payout ratio | enter percentages rounded to 1 decimal place | % | ||
(d) | Times interest earned | enter a number of times rounded to 1 decimal place | times |
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