Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented below. SHERIDAN COMPANY Balance Sheets December 31 (in thousands) 2022

image text in transcribed
image text in transcribed
image text in transcribed
The condensed financial statements of Sheridan Company for the years 2021 and 2022 are presented below. SHERIDAN COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Current assets $330 $360 490 420 560 490 Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) Investments 130 160 1510 1.430 410 380 30 30 Intangibles and other assets 530 510 510 Total assets $2,480 $2.350 Current abilities $840 $810 Long-term liabilities 580 480 Stockholders' equity-common 1060 1060 Total liabilidades $2480 $2250 Question 2 of 5 PER RF 1,060 1,060 Stockholders' equity-common Total liabilities and stockholders' equity $2,480 $2,350 SHERIDAN COMPANY Income Statements For the Year Ended December 31 (in thousands) 2022 2021 $3,900 $3,560 990 910 2.400 2.400 2.330 Sales revenue Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense Total costs and expenses Income before income taxes Income tax expense Net income 10 20 3,400 3.260 500 300 200 120 $ 300 $ 180 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places es 1.83 and answers to 1 decimal place, eg. 1.8 or 12.6%) Current ratio Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, eg 183 and all on answers to 1 decimal place, eg. 1.8 or 12,6%.) (a) (b) (c) (d) Current ratio Inventory turnover (Inventory on December 31, 2020, was $430.) Profit margin Return on assets. (Assets on December 31, 2020, were $2,830.) Return on common stockholders' equity. (Equity on December 31, 2020, was $980.) Debt to assets ratio Times interest earned le) 16 (g) 2022 2021 Current ratio 180 11 127 : 1 Inventory turnover Profit margin Return on assets

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

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

13th edition

978-1-119-4110, 1119411483, 9781119411017, 978-1119411482

More Books

Students also viewed these Accounting questions

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago

Question

Describe several models for organizing a human resources department

Answered: 1 week ago