Question
The following financial information is for Wildhorse Company. WILDHORSE COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $ 70,000 $ 68,000 Debt investments (short-term)
The following financial information is for Wildhorse Company.
WILDHORSE COMPANY Balance Sheets December 31 | ||||
---|---|---|---|---|
Assets | 2017 | 2016 | ||
Cash | $ 70,000 | $ 68,000 | ||
Debt investments (short-term) | 51,000 | 40,000 | ||
Accounts receivable | 109,000 | 91,000 | ||
Inventory | 231,000 | 167,000 | ||
Prepaid expenses | 27,000 | 26,000 | ||
Land | 134,000 | 134,000 | ||
Building and equipment (net) | 264,000 | 186,000 | ||
Total assets | $ 886,000 | $ 712,000 | ||
Liabilities and Stockholders Equity | ||||
Notes payable | $ 171,000 | $ 109,000 | ||
Accounts payable | 67,000 | 53,000 | ||
Accrued liabilities | 41,000 | 41,000 | ||
Bonds payable, due 2017 | 250,000 | 170,000 | ||
Common stock, $10 par | 206,000 | 206,000 | ||
Retained earnings | 151,000 | 133,000 | ||
Total liabilities and stockholders equity | $ 886,000 | $ 712,000 |
WILDHORSE COMPANY Income Statements For the Years Ended December 31 | ||||
---|---|---|---|---|
2017 | 2016 | |||
Sales revenue | $ 899,000 | $ 798,000 | ||
Cost of goods sold | 650,000 | 575,000 | ||
Gross profit | 249,000 | 223,000 | ||
Operating expenses | 192,000 | 168,000 | ||
Net income | $ 57,000 | $ 55,000 |
Additional information:
1. | Inventory at the beginning of 2016 was $ 117,000. | |
2. | Accounts receivable (net) at the beginning of 2016 were $ 90,000. | |
3. | Total assets at the beginning of 2016 were $ 634,000. | |
4. | No common stock transactions occurred during 2016 or 2017. | |
5. | All sales were on account. |
(a1) Compute the liquidity and profitability ratios of Wildhorse Company for 2016 and 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).)
2016 | 2017 | % Change | |||||||
---|---|---|---|---|---|---|---|---|---|
LIQUIDITY | |||||||||
Current ratio | enter the current ratio | :1 | enter the current ratio | :1 | enter percentages | % | |||
Accounts receivables turnover | enter accounts receivables turnover in times | times | enter accounts receivables turnover in times | times | enter percentages | % | |||
Inventory turnover | enter inventory turnover in times | times | enter inventory turnover in times | times | enter percentages | % |
2016 | 2017 | % Change | |||||||
---|---|---|---|---|---|---|---|---|---|
PROFITABILITY | |||||||||
Profit margin | enter percentages | % | enter percentages | % | enter percentages | % | |||
Asset turnover | enter asset turnover in times | times | enter asset turnover in times | times | enter percentages | % | |||
Return on assets | enter percentages | % | enter percentages | % | enter percentages | % | |||
Earnings per share | $ enter a dollar amount | $ enter a dollar amount | enter percentages | % |
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