| The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data: |
Current Previous ncome Statemen Sales revenue $190,000 $173,000 Cost of goods sold 4.000 04,000 Gross profit 76,000 69,000 Operating expenses 55,300 52,000 Interest expense 2.900 2,800 Income before income 7.800 14,200 taxes Income tax expense 5,340 3,200 Net income 12,460 11,000 Balance Sheet 5,660 8,200 Cash Accounts receivable 21.000 24,000 (net 42.000 37,000 inventory Property and 47,000 40,000 equipment (net $115,660 $109,200 17,400 20,400 Current liabilities Note payable (long- 47,000 47,000 term) Common stock (par 31,200 31,200 Additional paid-in 5,200 5,400 Retained earnings 4.660 5,400 $115,660 $109,200 During the current year, cash dividends of $3.200 were declared and paid Are the current year results better or worse,than those for the previous 2- Compute the net profit margin for the current and previous years. (Round ba, year? a. your answers to 1 decimal place.) 5. Not property and equipment totaled $36,000 at the beginning of the previous year. Compute the fixed asset turmover ratos for the cument and previous years (Round your to 2 decimal places. 2- Are the current year results better or worse, than those for the previous year? 5. Are the current year results better or worse,than those for the previous b. year? Compute the earnings per share forthe current and previous years. TIP: To calculate EPS Common Stock to the number of shares outstanding.Common Stock equals the par value per share times the number of shares. (Round your to 2 decimal places) Compute the debt-to-assets ratios forthe current and previous years. (Round your answers to 2 decimal places.) Previous Are the current year results better or worse, than those for the previous 6- Is debt providing financing for a larger or smaller proponton of the year? company's asset growth? Langer Proportion Smaller Proportion Stockholders' equity totaled$31.200 at the beginning of the previous 7. Compute the times interesteamed ratios forthe current and previous a. year Compute the retum on equity (ROE) ratios for the current and years. (Round your answers to 1 decimal place.) previous years. (Roundy decimal place. 7- Are the current year results better, or worse, than those for the previous b. year? Better 8- After Golden released its current year's financial statements, the a. company's stock was trading at $32. After the release of its previous year's financial statements, the company's stock price was $23 per share. Compute the PE ratios for both years. (Round your intermediate calculations and final answers to 2 decimal places.) Price/Earn tio Curren Year Previous Year 8- Does it appear that investors have become more (or less) optimistic about b, Golden's future success? More Optimistic Less Optimistic
