This is for Acc. 101AF HW CH 14
These last questions I need help with and how to get those answers.
Measures of liquidity, Solvency and Profitability The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $5,375,000 $4,545,000 Net income $900,000 $925,000 Dividends: On preferred stock On common stock (45,000) (45,000) (50,000) (50,000) Increase in retained earnings $805,000 $830,000 Retained earnings, December 31 $6,180,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 20Y1 $10,000,000 $9,400,000 Sales Cost of goods sold (5,350,000) (4,950,000) Gross profit $4,650,000 Selling expenses $(2,000,000) (1,500,000) $4,450,000 $(1,880,000) (1,410,000) Administrative expenses Total operating expenses $(3,500,000) $(3,290,000) $1,160,000 $1,150,000 Operating income Other revenue and expense: Other revenue 150,000 140,000 Other expense (interest) (170,000) (150,000) Income before income tax expense $1,130,000 (230,000) $1,150,000 (225,000) Income tax expense Net income $900,000 $925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 20Y2 20Y1 Assets Current assets: $500,000 1,010,000 Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses 740,000 $400,000 1,000,000 510,000 950,000 229,000 1,190,000 250,000 Total current assets Long-term investments $3,690,000 2,350,000 3,740,000 $9,780,000 $3,089,000 2,300,000 3,366,000 Property, plant, and equipment (net) Total assets $8,755,000 TUlal assets 100,000 Liabilities Current liabilities $900,000 $880,000 Long-term liabilities: $200,000 $0 Mortgage note payable, 10% Bonds payable, 10% Total long-term liabilities 1,500,000 1,500,000 $1,500,000 $1,700,000 $2,600,000 Total liabilities $2,380,000 $500,000 $500,000 Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, $5 par Retained earnings Total stockholders' equity 500,000 500,000 6,180,000 $7,180,000 $9,780,000 5,375,000 $6,375,000 Total liabilities and stockholders' equity $8,755,000 Required: Determine the following measures for 20Y2, rounding to one decimal place, except dollar amounts which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital $ 2,790,000 11. Asset turnover 12. Return on total assets 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
