Question
The financial statements of Marigold Company appear below: MARIGOLD COMPANY Comparative Balance Sheet December 31 2022 2021 Assets Cash $ 27,000 $ 39,400 Debt investments
The financial statements of Marigold Company appear below:
MARIGOLD COMPANY Comparative Balance Sheet December 31 | ||||
---|---|---|---|---|
2022 | 2021 | |||
Assets | ||||
Cash | $ 27,000 | $ 39,400 | ||
Debt investments | 21,300 | 53,000 | ||
Accounts receivable (net) | 51,600 | 27,900 | ||
Inventory | 154,000 | 169,000 | ||
Property, plant and equipment (net) | 177,000 | 163,000 | ||
Total assets | $430,900 | $452,300 | ||
Liabilities and stockholders' equity | ||||
Accounts payable | $ 26,400 | $ 27,200 | ||
Short-term notes payable | 32,900 | 92,900 | ||
Bonds payable | 67,700 | 146,800 | ||
Common stock | 195,900 | 101,200 | ||
Retained earnings | 108,000 | 84,200 | ||
Total liabilities and stockholders' equity | $430,900 | $452,300 |
MARIGOLD COMPANY Income Statement For the Year Ended December 31, 2022 | |||||
---|---|---|---|---|---|
Net sales (all on credit) | $415,000 | ||||
Cost of goods sold | 165,000 | ||||
Gross profit | 250,000 | ||||
Expenses | |||||
Interest expense | $11,600 | ||||
Selling expenses | 34,000 | ||||
Administrative expenses | 19,000 | ||||
Total expenses | 64,600 | ||||
Income before income taxes | 185,400 | ||||
Income tax expense | 33,100 | ||||
Net income | $ 152,300 |
Additional information:
a. | Cash dividends of $53,600 were declared and paid on common stock in 2022. | |
b. | Weighted-average number of shares of common stock outstanding during 2022 was 53,600 shares. | |
c. | Market price of common stock on December 31, 2022, was $14 per share. | |
d. | Net cash provided by operating activities for 2022 was $71,700. |
Using the financial statements and additional information, compute the following ratios for the Marigold Company for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
1. | Current ratio | Enter current ratio value | : 1 | ||
2. | Return on common stockholders' equity | Enter return on common stockholders' equity in percentages | % | ||
3. | Price-earnings ratio | Enter price-earnings ratio in times | times | ||
4. | Inventory turnover | Enter inventory turnover in times | times | ||
5. | Accounts receivable turnover | Enter accounts receivable turnover in times | times | ||
6. | Times interest earned | Enter times interest earned | times | ||
7. | Profit margin | Enter profit margin in percentages | % | ||
8. | Average days in inventory | Enter average days in inventory | days | ||
9. | Payout ratio | Enter payout ratio in percentages | % | ||
10. | Return on assets | Enter return on assets in percentages | % |
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