Question
The financial statements of Marin Company appear below: MARIN COMPANY Comparative Balance Sheet December 31, Assets 2020 2019 Cash $25,000 $43,500 Short-term investments 21,500 69,500
The financial statements of Marin Company appear below:
MARIN COMPANY Comparative Balance Sheet December 31, | |||||
---|---|---|---|---|---|
Assets | 2020 | 2019 | |||
Cash | $25,000 | $43,500 | |||
Short-term investments | 21,500 | 69,500 | |||
Accounts receivable (net) | 41,600 | 30,600 | |||
Inventory | 62,000 | 71,900 | |||
Property, plant and equipment (net) | 265,000 | 310,000 | |||
Total assets | $415,100 | $525,500 | |||
Liabilities and stockholders' equity | |||||
Accounts payable | $18,700 | $30,100 | |||
Short-term notes payable | 42,500 | 93,500 | |||
Bonds payable | 80,000 | 160,000 | |||
Common stock | 150,000 | 150,000 | |||
Retained earnings | 123,900 | 91,900 | |||
Total liabilities and stockholders' equity | $415,100 | $525,500 |
MARIN COMPANY Income Statement For the Year Ended December 31, 2020 | ||||
---|---|---|---|---|
Net sales | $410,000 | |||
Cost of goods sold | 266,500 | |||
Gross profit | 143,500 | |||
Expenses | ||||
Operating expenses | $45,000 | |||
Interest expense | 18,500 | |||
Total expenses | 63,500 | |||
Income before income taxes | 80,000 | |||
Income tax expense | 24,000 | |||
Net income | $56,000 |
Additional information:
a. | Cash dividends of $24,000 were declared and paid in 2020. | |
b. | Weighted-average number of shares of common stock outstanding during 2020 was 28,000 shares. | |
c. | Market value of common stock on December 31, 2020, was $23 per share. |
Using the financial statements and additional information, compute the following ratios for Marin Company for 2020. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 52.7.)
1. | Current ratio | enter ratio rounded to 1 decimal place | :1 | ||
---|---|---|---|---|---|
2. | Return on common stockholders' equity | enter percentages rounded to 1 decimal place | % | ||
3. | Price-earnings ratio | enter a number of times rounded to 1 decimal place | times | ||
4. | Accounts receivable turnover | enter a number of times rounded to 1 decimal place | times | ||
5. | Times interest earned | enter a number of times rounded to 1 decimal place | times | ||
6. | Profit margin | enter percentages rounded to 1 decimal place | % | ||
7. | Days in inventory | enter a number of days rounded to 1 decimal place | days | ||
8. | Payout ratio | enter percentages rounded to 1 decimal place | % | ||
9. | Return on assets |
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