Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The condensed financial statements of Carla Vista Electronics for 2022 are presented below. Carla Vista Electronics Balance Sheet December 31, 2022 Assets Current assets Cash

The condensed financial statements of Carla Vista Electronics for 2022 are presented below.

Carla Vista Electronics Balance Sheet December 31, 2022

Assets

Current assets

Cash and short-term investments

$24,000

Accounts receivable

30,720

Inventories

40,896

Total current assets

95,616

Property, plant, and equipment (net)

307,584

Total assets

$403,200

Liabilities and Stokholders' Equity

Current liabilities

$57,600

Long-term liabilities

211,872

Common stockholders equity

133,728

Total liabilities and stockholders equity

$403,200

Carla Vista Electronics Income Statement For the Year Ended December 31, 2022

Revenues

$585,000

Expenses

Cost of goods sold

338,400

Selling and admin expenses

135,000

Interest expense

27,000

Total expenses

500,400

Income before income taxes

84,600

Income tax expense

25,380

Net income

$59,220

Additional data as of December 31, 2021: Inventory = $42,300; Total assets = $351,000; Common stockholders' equity = $99,000. Compute the following listed ratios for 2022. (Round answers to 2 decimal places, e.g. 1.83.)

1.

Current ratio

enter ratio rounded to 2 decimal places

: 1

2.

Debt to assets ratio

enter percentages rounded to 2 decimal places

%

3.

Times interest earned

enter a number of times rounded to 2 decimal places

times

4.

Inventory turnover

enter a number of times rounded to 2 decimal places

times

5.

Profit margin

enter percentages rounded to 2 decimal places

%

6.

Return on common stockholders' equity

enter percentages rounded to 2 decimal places

%

7.

Return on assets

enter percentages rounded to 2 decimal places

%

Save for Later

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

Students also viewed these Accounting questions