Question
Use the following information to PREPARE A RATIO ANALYSIS FOR Carlton Co. The following information pertains to Carlton Company. Assume that all balance sheet amounts
Use the following information to PREPARE A RATIO ANALYSIS FOR Carlton Co.
The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments | $ 40,000 | ||
Accounts receivable (net) | 25,000 | ||
Inventory | 20,000 | ||
Property, plant and equipment | 210,000 | ||
Total assets | $295,000 |
Liabilities and Stockholders Equity
Current liabilities | 60,000 | ||
Long-term liabilities | 85,000 | ||
Stockholders equity-common | 150,000 | ||
Total liabilities and stockholders equity | $295,000 |
Income Statement
Net sales | $ 85,000 | ||
Cost of goods sold | 45,000 | ||
Gross margin | 40,000 | ||
Operating expenses | 15,000 | ||
Interest expense | 5,000 | ||
Net income | $ 20,000 |
EPS $3.33
Number of shares of common stock | 6,000 | |
Market price of common stock | $20 | |
Total dividends paid | $5,400 | |
Cash provided by operations | $30,000 |
Dividend per share $.90
Required:
Prepare a ratio analyses using the formulas presented on page 627. If a ratio not applied to Carlton Co., write N/A.
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