Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the following financial statements apply to Baird Company: Year 2 Year 1 Revenues $ 2 1 9 , 7 0 0 $ 1 8 2

the following financial statements apply to Baird Company:
Year 2 Year 1
Revenues $ 219,700 $ 182,100
Expenses
Cost of goods sold 124,700102,500
Selling expenses 20,90018,900
General and administrative expenses 11,00010,000
Interest expense 2,7002,700
Income tax expense 20,10017,700
Total expenses 179,400151,800
Net income $ 40,300 $ 30,300
Assets
Current assets
Cash $ 6,000 $ 7,500
Marketable securities 2,4002,400
Accounts receivable 35,70031,200
Inventories 204,000195,000
Prepaid expenses 4,9003,900
Total current assets 253,000240,000
Plant and equipment (net)105,500105,500
Intangibles 21,9000
Total assets $ 380,400 $ 345,500
Liabilities and Stockholders Equity
Liabilities
Current liabilities
Accounts payable $ 39,500 $ 35,500
Other 15,40016,200
Total current liabilities 54,90051,700
Bonds payable 57,10065,700
Total liabilities 112,000117,400
Stockholders equity
Common stock (42,000 shares)130,000130,000
Retained earnings 138,40098,100
Total stockholders equity 268,400228,100
Total liabilities and stockholders equity $ 380,400 $ 345,500
57100
Required
Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations.
Net margin. (Round your answers to 2 decimal places.)
Return on investment. (Round your answers to 2 decimal places.)
Return on equity. (Round your answers to 2 decimal places.)
Earnings per share. (Round your answers to 2 decimal places.)
Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $5.99 and $4.88, respectively).(Round your intermediate calculations and final answers to 2 decimal places.)
Book value per share of common stock. (Round your answers to 2 decimal places.)
Times interest earned. (Round your answers to 2 decimal places.)
Working capital.
Current ratio. (Round your answers to 2 decimal places.)
Quick (acid-test) ratio. (Round your answers to 2 decimal places.)
Accounts receivable turnover. (Round your answers to 2 decimal places.)
Inventory turnover. (Round your answers to 2 decimal places.)
Debt-to-equity ratio. (Round your answers to 2 decimal places.)
Debt-to-assets ratio. (Round your answers to the nearest whole percent.)

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

Information Technology Auditing

Authors: Hall, J Scott Harr

3rd Edition

1133008046, 978-1439079119

More Books

Students also viewed these Accounting questions