Question
The following financial statements apply to Rundle Company: RUNDLE COMPANY Income Statements for the Years Ending December 31 Year 2 Year 1 Revenues $ 219,400
The following financial statements apply to Rundle Company:
RUNDLE COMPANY | ||
---|---|---|
Income Statements for the Years Ending December 31 | ||
Year 2 | Year 1 | |
Revenues | $ 219,400 | $ 182,800 |
Expenses | ||
Cost of goods sold | 124,500 | 101,200 |
Selling expenses | 20,400 | 18,400 |
General and administrative expenses | 11,000 | 10,000 |
Interest expense | 2,700 | 2,700 |
Income tax expense | 20,000 | 16,300 |
Total expenses | 178,600 | 148,600 |
Net income | $ 40,800 | $ 34,200 |
RUNDLE COMPANY | ||
---|---|---|
Balance Sheets As of December 31 | ||
Year 2 | Year 1 | |
Assets | ||
Current assets | ||
Cash | $ 5,800 | $ 6,500 |
Marketable securities | 1,300 | 1,300 |
Accounts receivable | 36,000 | 30,700 |
Inventories | 101,000 | 94,600 |
Prepaid expenses | 4,700 | 3,700 |
Total current assets | 148,800 | 136,800 |
Plant and equipment (net) | 107,000 | 107,000 |
Intangibles | 21,100 | 0 |
Total assets | $ 276,900 | $ 243,800 |
Liabilities and Stockholders Equity | ||
Liabilities | ||
Current liabilities | ||
Accounts payable | $ 38,900 | $ 34,400 |
Other | 15,400 | 15,500 |
Total current liabilities | 54,300 | 49,900 |
Bonds payable | 64,800 | 65,800 |
Total liabilities | 119,100 | 115,700 |
Stockholders equity | ||
Common stock (48,000 shares) | 113,000 | 113,000 |
Retained earnings | 44,800 | 15,100 |
Total stockholders equity | 157,800 | 128,100 |
Total liabilities and stockholders equity | $ 276,900 | $ 243,800 |
Required
Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. Note: Round ratio answers to 2 decimal places unless otherwise indicated.
Net margin.
Return on investment.
Return on equity.
Earnings per share.
Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.01 and $4.79, respectively).
Note: Round your intermediate calculations and final answers to 2 decimal places.
Book value per share of common stock.
Times interest earned.
Working capital.
Current ratio.
Quick (acid-test) ratio.
Accounts receivable turnover.
Inventory turnover.
Debt-to-equity ratio.
Debt-to-assets ratio.
Note: Round your answers to the nearest whole percent.
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