The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2010 and 2009, is shown as follows: Dec 31, 2010 Dec 31, 2009 Assets Cash Accounts receivable Inet) Inventones Investments Land Equipment Accumulated depreciation equipment $ 312.880 113,920 320,880 0 164.000 352560 183 2001 $1,181,040 $ 292.960 104 480 308,560 120.000 0 275,560 174 0005 $1,028,560 Liabilities and Stockholders' Equity Accounts payable imerchandise creditors Accrued expenses payable operating expenses Dividends payable Common stock, $10 par Paid-in capital in excess of pancommon stock Retained earnings $ 214.240 21.120 12.000 54.000 240.000 629.680 31181.040 202 480 26,320 9.500 48.000 740.000 602160 $1.028.560 The following additional information was taken from the records The investments were sold for $140.000 cash bEquipment and land were acquired for cash C. There were no disposals of equipment during the year d The common stock was issued for cash e There was a $75,520 credit to Retained Earnings for net income There was a $48.000 debit to Retained Earnings for cash dividends declared Instructions Trepare a statement of cash flows, using the indirect methodol presenting cash flows om operating activities Financial Statement Analysis The comparative financial statements of Optical Solutions Inc. are as follows. The mar- ket price of Optical Solutions Inc. common stock was 560.00 on December 31, 2010, Optical Solutions Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Retained earnings, January 1 $ 604,000 $306,000 Add net income for year 428.000 214.000 Total $1022000 $820.000 Deduci dividends On preferred stock $ 4 000 $ 4.000 On common stock 12000 12000 Total $16.000 $16.000 $604 000 $1,016,000 Retained earnings. December 31 Optical Solutions Inc. Comparative Income Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Sales Sales returns and allowances Net sales Cose of goods sold Gross profit Selling expenses Administratives Tot openg expenses Ferom operato One income $1608.000 5.929 $1 602 080 480200 51 BAD 5324 000 234.000 51 481600 1000 $1 475.500 49917.00 5976,400 50352000 F00 S563720 S13200 5563880 2009 558880 32 400 Optical Solutions Inc. Comparative Inopme Statement For the Years Ended December 31, 2010 and 2009 Sales Sales returns and allowances Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other income EL 2010 $1,600.000 5.920 $1.602.080 480 200 $1_121,880 $ 324.000 234.000 $ 558.000 $ 563,880 24.000 $ 587.880 110 220 $ 477.160 49.160 $ 428.000 2009 $1,481,600 6.000 $1,475.600 499 200 $_976.400 $ 352.000 211.200 $_563.200 $ 413.200 19 200 $ 432.400 80.000 S 352.400 38.400 $ 314,000 Other expense interest Income before income tax Income tax expense Net income Optical Solutions Inc. Comparative Balance Sheet December 31, 2010 and 2009 Dec 31, 2010 Dec 31, 2009 Assets Current assets Cash Temporary investments Accounts receivable ineti 5 240.000 364.000 260.000 5 162 400 328.800 211200 Optical Solutions Inc. Comparative Balane. Shout December 31, 2010 and 2009 Dec 31, 2010 Dec 31, 2009 Assets Current assets Cash $ 240,000 $ 162.400 Temporary investments 364.000 328.800 Accounts receivable (net) 260.000 211,200 Inventones 208,000 66,400 Prepaid expenses 44000 23.200 Total current assets $1,116,000 $ 792,000 Long-term investments 204,800 256,000 Property, plant, and equipment (net 1539 200 976.000 Total assets $2.860.000 $2.024 000 Liabilities Current liabilities $360.000 $. 320.000 Long-term liabilities Mortgage note payable, 8%, due 2015 $ 384.000 Bonds payable, 10%, due 2019 B00.000 $300.000 Total long-term liabilities $1184.000 $ 800.000 Total liabilities $1544000 $1120.000 Stockholders' Equity Preferred $2.00 stock $50 oar $ 100.000 $ 100.000 Common stock 55 par 200.000 200.000 Retained earnings 1016.000 504 000 Tore stockholders equity $1.315.000 $904.000 talitatiles anciennes $260 000 $20940 Total stockholders' equity Total liabilities and stockholders' couity Uw $1.316.000 52 860 000 $1904.000 $2024 000 Instructions Determine the following measures for 2010, rounding to one decimal place: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8 9. Ratio bf liabilitles to stockholders' equity 10. Number of times, interest charges earned 11. Number of times preferred dividends earned 12. Ratio of net sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield Rating of five me te le long teren abilities worting Capital