undefined
The following financial information is for Priscoll Company. 2019 Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 93,100 Debt investments (short-term) 73,150 Accounts receivable 138,320 Inventory 305,900 Prepaid expenses 33,250 Land 172,900 Building and equipment (net) 345,800 Total assets $1,162,420 Liabilities and Stockholders' Equity Notes payable (short-term) $226,100 Accounts payable 86,450 Accrued liabilities 53,200 Bonds payable, due 2023 332,500 Common stock, $10 par 266,000 Retained earnings 198,170 Total liabilities and stockholders' equity $1,162,420 $ 86,450 53,200 119,700 219,450 30,590 172,900 246,050 $928,340 $159,600 69,160 53,200 226,100 266,000 154,280 $928,340 Priscoll Company Income Statement For the Years Ended December 31 2020 2019 Sales revenue $1,173,060 $1,050,700 Cost of goods sold 851,200 764,750 Gross profit 321,860 285,950 Operating expenses 252,700 222,110 Net income $ 69,160 $ 63,840 Additional information: 1. 2. 3. Inventory at the beginning of 2019 was $152,950. Accounts receivable (net) at the beginning of 2019 were $114,380. Total assets at the beginning of 2019 were $877,800. mmon stock transactions occurred during 2019 or 2020. All sales were on account. 4. No commo 5. Indicate, by using ratios, the change in liquidity and profitability of Priscoll Company from 2019 to 2020. (Round Current ratio, Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) 2019 2020 LIQUIDITY Current ratio : 1 :1 Accounts receivable turnover times times Inventory turnover times times PROFITABILITY Profit margin % % Asset turnover times times Return on assets % % Earnings per share The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2020, and (2) as of December 31, 2021, after giving effect to the situation. (Round debt to assets ratio to 0 decimal places, e.g. 15% and other answers to 1 decimal place, e.g. 6.8 or 6.8%.) Situation (1) 23,940 shares of common stock were sold at par on July 1, 2021. Net income for 2021 was $71,820. Ratio Return on common stockholders' equity Debt to assets ratio (2) All of the notes payable were paid in 2021. All other liabilities remained at their December 31, 2020, levels. At December 31, 2021, total assets were $1,197,000. The market price of common stock was $12 and $16 on December 31, 2020 and 2021, respectively. Net income for 2021 was $71,820. (3) Price-earnings ratio 2020 2021 Return on common stockholders' equity % % Debt to assets ratio % % Price-earnings ratio times times LINK TO TEXT
