Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the comparative balance sheets for Potawatami Corporation attached and the following selected financial information to answer the requirements to this problem. Potawatami Corporation had

image text in transcribed
image text in transcribed
Use the comparative balance sheets for Potawatami Corporation attached and the following selected financial information to answer the requirements to this problem. Potawatami Corporation had the following additional information available for the year ending December 31, 20X3. REQUIRED: (1) (2) (3) Using the balance sheets provided, prepare a horizontal analysis from 20X2 to 20X3 for all items listed. Round all percentages to two decimal places (four decimal places in all). Using the balance sheets provided, prepare a vertical analysis for 20X3 for all items listed. Round all percentages to two decimal places (four decimal places in all). Compute the following financial ratios for 20X3. Round all percentages to two decimal places (four decimal places in all) and all other numbers to two decimal places. Current Ratio (b) Quick Ratio. Accounts Receivable Turnover. Accounts Receivable Days' Sales on Hand. Profit Margin Ratio Retum on Average Total Assets. Return on Average Common Stockholders' Equity. Debt to Equity Ratio. Interest Coverage Ratio. SES POTAWATAMI CORPORATION COMPARATIVE BALANCE SHEETS AT DECEMBER 31, 20X2 AND 20X3 Dec. 31, 20X3 Dec. 31, 20X2 Cash $ 28,500 $ 20,000 Accounts Receivable 14,300 10,000 Inventory 18,000 25,000 Long Term Investments 0 6,000 Buildings 20,000 50,000 Accumulated Depreciation, Buildings 1,000) 6,000) Equipment 72.000 35.000 Accumulated Depreciation, Equipment 14.000) 22.500) Patent 14,600 15,750 Total Assets $ 152,400 $ 133,250 $ Accounts Payable Dividends Payable Notes Payable, Short Term Notes Payable, Long Term Common Stock Additional Paid In Capital, Common Stock Retained Earnings Total Liabilities and Stockholders' Equity 12,000 $ 0 8,000 42,000 50,000 10,000 30,400 152,400$ 15,000 10,000 2.000 36,000 35,000 0 35,250 133,250

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing E4 Im

Authors: KNAPP

4th Edition

0324048602, 978-0324048605

More Books

Students also viewed these Accounting questions

Question

Does it have at least one-inch margins?

Answered: 1 week ago

Question

Does it highlight your accomplishments rather than your duties?

Answered: 1 week ago