the only things needed are retained earnings, total stockholders' equity, and total liabilities and stockholders' equity
Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Balance Sheet Profitability Measures Liquidity and Solvency Measures Shaded cals have feedcak Your friend, another accountant has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bell Match each computation to one of the louidity and solvency measures in the table. (Hint Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts) Liquidity and Solvency Measures Computations Inventory turnover $4,100,000 + ($1,072,000 $1,100,000) + 2] Number of days' sales in receivables (5714,000 - $740,000) + 2] + [58,230,000 365) Accounts receivable turnover $8,280,000 ($714,000 - $740,000) 21 Ratio of fixed assets to long-term liabilities $2,690,000+ $1,690,000 Working capital $3,091,000 - $340,000 Times interest earned (5989.400 5127.000) + $127.000 Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Balance Sheet Profitability Measures Liquidity and Solvency Measures Shaded cols have feedback. X Working capital $3,091,000 - $840,000 Times interest earned (5989,400 + $127,000) + $127,000 Current ratio $3,091,000 $840,000 kk Quick ratio $1,866,000 $840,000 Number of days' sales in inventory ($1,072,000 $1,100,000) + 2(54,100,000 $365) Ratio of liabilities to stockholders' equity $2,530,000+ $4,075,000 FPoints: 10/10 Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Balance Sheet Profitability Measures Liquidity and Solvency Measures Balance Sheet Shaded cals have fecoack Shaded calls have feedback Use the following balance sheet form to enter amounts you identity from the computations on the Liquidity and Solvency Measures panel. You wil identity other amounts for the balance sheet on the Profitability Measures panel if you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Compute any missing amounts Score: 52/64 Balance Sheet December 31, 2016 Assets 2 Current assets: Cash Marketable securities 5823,000.00 329.000.00 714.000.00 1,072,000.00 Accounts receivable (net) Inventory Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Balance Sheet Profitability Measures Liquidity and Solvency Measures Balance Sheet Prepaid expenses Total current assets Shaded cells have feedoack Shaded cels have feedback 153.000.00 $3.091.000.00 824,000.00 . Long-term investments 10 Property, plant, and equipment (net) 2.690.000.00 11 Total assets $6,605,000.00 Liabilities 13 Current liabilities 14 Long-term liabilities $840,000.00 1.690.000.00 $2.530,000.00 15 Total liabilities Stockholders' Equity 17 Preferred stock. $10 par 18 Common stock 55 par 19 Retained eamings $487.500.00 1.250,000.00 Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Balance Sheet Profitability Measures Shaded cols have feedback Liquidity and Solvency Measures Balance Sheet Shaded ceis Mave feecoach Liabilities 13 Current liabilities 5840,000.00 14 Long-term liabilities 1,690,000.00 15 Total liabilities $2,530,000.00 Stockholders' Equity 11 Preferred stock. $10 par 18 Common stock 55 par $487.500.00 1.250,000.00 19 Retained earnings 20 Total stockholders' equity 21 Total liabilities and stockholders' equity Points 13/16
