Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 %

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

Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making

Authors: Mark S. Bettner

2nd Edition

1947098683, 9781947098688

More Books

Students also viewed these Accounting questions

Question

Recognize the various roles and competencies of an HRD professional

Answered: 1 week ago

Question

Define human resource development (HRD)

Answered: 1 week ago