Question
The financial statements of Sage Hill Company appear below: SAGE HILL COMPANY Comparative Balance Sheet December 31, Assets 2020 2019 Cash $20,500 $47,000 Short-term investments
The financial statements of Sage Hill Company appear below:
SAGE HILL COMPANY Comparative Balance Sheet December 31, | |||||
---|---|---|---|---|---|
Assets | 2020 | 2019 | |||
Cash | $20,500 | $47,000 | |||
Short-term investments | 28,000 | 66,000 | |||
Accounts receivable (net) | 41,500 | 31,900 | |||
Inventory | 61,300 | 70,400 | |||
Property, plant and equipment (net) | 260,000 | 310,000 | |||
Total assets | $411,300 | $525,300 | |||
Liabilities and stockholders' equity | |||||
Accounts payable | $16,240 | $30,200 | |||
Short-term notes payable | 41,000 | 93,000 | |||
Bonds payable | 90,000 | 180,000 | |||
Common stock | 150,000 | 150,000 | |||
Retained earnings | 114,060 | 72,100 | |||
Total liabilities and stockholders' equity | $411,300 | $525,300 |
SAGE HILL COMPANY Income Statement For the Year Ended December 31, 2020 | ||||
---|---|---|---|---|
Net sales | $430,000 | |||
Cost of goods sold | 275,200 | |||
Gross profit | 154,800 | |||
Expenses | ||||
Operating expenses | $42,500 | |||
Interest expense | 18,500 | |||
Total expenses | 61,000 | |||
Income before income taxes | 93,800 | |||
Income tax expense | 28,140 | |||
Net income | $65,660 |
Additional information:
a. | Cash dividends of $23,700 were declared and paid in 2020. | |
b. | Weighted-average number of shares of common stock outstanding during 2020 was 32,830 shares. | |
c. | Market value of common stock on December 31, 2020, was $22 per share. |
Using the financial statements and additional information, compute the following ratios for Sage Hill 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 | enter percentages rounded to 1 decimal place | % |
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