Question
The condensed financial statements of Marks Company for the years 2014-2015 are presented below: Marks Company Comparative Balance Sheets As of December 31, 2014 and
The condensed financial statements of Marks Company for the years 2014-2015 are presented below:
Marks Company
Comparative Balance Sheets
As of December 31, 2014 and 2015
2015 2014
Cash$385,000 $160,000
Accounts receivable (net)
368,000 309,000
Inventories 379,000 341,000
Plant and equipment 1,834,000 1,112,000
Accumulated depreciation (260,000) (194,000)
$2,706,000 $1,728,000
Accounts payable $341,000 $163,000
Dividends payable -0- 40,000
Bonds payable 401,000 -0-
Common stock ($10 par) 1,523,000 1,240,000
Retained earning s 441,000 285,000
$2,706,000 $1,728,000
Additional data:Market value of stock at 12/31/15 is $80 per share.Marks sold 34,000 shares of common stock at par on July 1, 2015.
Marks Company
Condensed Income Statement
For the Year Ended December 31, 2015Sales revenue$2,401,000Cost of goods sold1,642,000Gross profit759,000Administrative and selling expenses504,000Net income$255,000
Compute the following financial ratios by placing the proper amounts for numerators and denominators.(Round per unit answers to 2 decimal places, e.g. 52.75.)
(a)Current ratio at 12/31/15$
$
(b)Acid test ratio at 12/31/15$
$
(c)Accounts receivable turnover in 2015$
$
(d)Inventory turnover in 2015$
$
(e)Profit margin on sales in 2015$
$
(f)Earnings per share in 2015$
(g)Return on common stock equity in 2015$
$
(h)Price earnings ratio at 12/31/15$
$
(i)Debt to assets at 12/31/15$
$
(j)Book value per share at 12/31/15$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started