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this is mt third time asking this question and so far no luck with right answers. i cannot figure out the rest of it. Mastery
this is mt third time asking this question and so far no luck with right answers. i cannot figure out the rest of it.
Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures 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 ola.com any's financial statements. You take the bett Matci each computation to one of the quidity 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 Working capital $1,091,000 $900.000 Current ratio $3,093.000.000.000 Quick ratio $1,866.000 $900,000 Accounts receivable turnover 58.250.0006714,000$740,000) Number of days'sales in receivables (5714,000 15740,000) 2.250.00022365) Inventory turnover 54,100,000 1,072,000 $1,100,000 2 Number of days sales in inventory $1,072,000 $1,100,000 2400,000 $365) Ratio of fixed assets to long-term liabilities $2.690,000 = $1,690,000 . Ratio of liabilities to stockholders' equity $2,500,000+ $4,017,000 Times interest eamed (5970,500 $127,000 $127,000 . Balance Sheet Use the following balance sheet form to enter amounts you Identity from the computatons on the liquidity and Solvency Measures part. You will identify other amounts for the balance sheet on the Profitabdity Measures part. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Computer any missing amounts Balance Sheet December 31, 2016 Assets Current assets: Casti 5823,000 329,000 Marketable secunties Accounts receivable (net) 714,000 Inventory 1,072,000 V 155,000 Prepaid expenses Total current assets 3,093,000 Long-term investments 824,000 Property, plant, and equipment (net) 2,690,000 Total assets 6,607,000 Liabilities Current liabilities Long term liabilities 1,690,000 Accounts receivable (net) 714,000 Inventory 1,072,000 Prepaid expenses 155,000 Total current assets 3,093,000 Long-term investments 824,000 Property, plant, and equipment (net) 2,690,000 Total assets 6,607,000 Liabilities Current liabilities Long term babilities 1,690,000 | 160 Total liabilities Stockholders' Equity Preferred stock, 510 par 487,500 Common stock, $5 par 1,250,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 6,607,000 Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations 58.250.000 $5,283,000+ $5.593,000 2 Asset turnover Return on total assets Return on stockholders' equity $786,300 $127,000). [($6,607,000 + $6,417,000) = 2 $786,300 $4,017,000 $2,816 1502 (5786 300 - $65,000) 3 (53,529,500 + 53,388,320) = 21 $786 300 - $65,000 250,000 shares Return on common stockholders' equity Earnings per share on common stock Price-carnings ratio $35 : 53.05 Dividends per share $175,000 250,000 shares $0.70 = $35 Dividend yield Fech Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the bozontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If Step by Step Solution
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