Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The financial statements of Lewis Company appear below: LEWIS COMPANY Comparative Balance Sheet December 31 2020 $ 25.000 20 000 50.000 2019 $ 40,000 60,000
The financial statements of Lewis Company appear below: LEWIS COMPANY Comparative Balance Sheet December 31 2020 $ 25.000 20 000 50.000 2019 $ 40,000 60,000 30,000 140.000 170,000 Assata Cash Marketablo sacurities Accounts receivable (not) Inventory ........... Property, plant and equipment (nict) Total assets Liabilities and stocolders' equity Accounts payable ........ Short-term notes payable 170.000 200.000 3500.com $ 25.000 $ 30,000 90,000 40,000 75.000 160.000 Bonda payable Common stock 160,000 145,000 105.000 Retained carnings Total abilities and stockholders' equity... 75.000 $5.000.000 M05. LEVIS COMPANY Income Statement Far the Year Ended December 31, 2020 $360,000 184.000 Ne: sales (all on credit) Cost of goods sald Gross profit Expenses 176,000 $11.000 30 000 Interest expense Selling expenses... Administrative expenses Total expenses ........ Income before income taxes 20.000 61.COU 115,000 Income tax expense 35,000 Net Income... $80.com Additional information: Cash dividends of $50,00D vere declared and paid on common slock in 2020. b. Weighted average number of shares of common stock outstanding during 2020 was $4,000 shares Market value of common stock on December 31, 2020, VRS $15 per share. d. Net cash provided by operating activities for 2020 w2a $70,000. Using the financial statemente and additional Information, compute the following ratos for the Levis Company for 2020. Show al computations. 1 Current ratio 2. 3. Return on common stockholders' equity Price-eaminge ratio Inventory turnover ratio 4. S Receivables turnover 6. 7. Times Interest earned Profit margin ratis Average days in inventory Payout ratio a 9. 10. Return on assets 11 Cash debit caverage ratio
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