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Victor Audio Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales (all on account) $ 2,170,000 $ 1,960,000
Victor Audio Company | |||
Comparative Income Statement | |||
For the Years Ended December 31, 2016 and 2015 | |||
2016 | 2015 | ||
Sales (all on account) | $ 2,170,000 | $ 1,960,000 | |
Sales returns and allowances | 70,000 | 60,000 | |
Net sales | $ 2,100,000 | $ 1,900,000 | |
Cost of goods sold | 840,000 | 770,000 | |
Gross profit | $ 1,260,000 | $ 1,130,000 | |
Selling expenses | $ 410,000 | $ 370,000 | |
Administrative expenses | 305,000 | 290,000 | |
Total operating expenses | $ 715,000 | $ 660,000 | |
Income from operations | $ 545,000 | $ 470,000 | |
Other income | 20,000 | 15,000 | |
$ 565,000 | $ 485,000 | ||
Other expense (interest) | 104,000 | 72,000 | |
Income before income tax | $ 461,000 | $ 413,000 | |
Income tax expense | 41,000 | 35,000 | |
Net income | $ 420,000 | $ 378,000 | |
Victor Audio Company | |||
Comparative Retained Earnings Statement | |||
For the Years Ended December 31, 2016 and 2015 | |||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Retained earnings, January 1 | $ 394,000 | $ 50,000 | |
Add net income for year | 420,000 | 378,000 | |
Total | $ 814,000 | $ 428,000 | |
Deduct dividends: | |||
On preferred stock | $ 30,000 | $ 18,000 | |
On common stock | 16,000 | 16,000 | |
Total | $ 46,000 | $ 34,000 | |
Retained earnings, December 31 | $ 768,000 | $ 394,000 | |
Victor Audio Company | |||
Comparative Balance Sheet | |||
For the Years Ended December 31, 2016 and 2015 | |||
Assets | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash | $ 87,000 | $ 176,000 | |
Marketable securities | 258,000 | 335,000 | |
Accounts receivable (net) | 261,000 | 235,000 | |
Inventories | 212,000 | 190,000 | |
Prepaid expenses | 25,000 | 18,000 | |
Total current assets | $ 843,000 | $ 954,000 | |
Long-term investments | 1,000,000 | 400,000 | |
Property, plant, and equipment (net) | 1,675,000 | 1,050,000 | |
Total assets | $ 3,518,000 | $ 2,404,000 | |
Liabilities | |||
Current liabilities | $ 450,000 | $ 310,000 | |
Long-term liabilities: | |||
Mortgage note payable, 10%, due 2010 | $ 400,000 | $ - | |
Bonds payable, 12%, due 2009 | 600,000 | 600,000 | |
Total long-term liabilities | $ 1,000,000 | $ 600,000 | |
Total liabilities | $ 1,450,000 | $ 910,000 | |
Stockholders' Equity | |||
Preferred $8 stock, $100 par | $ 500,000 | $ 300,000 | |
Common stock, $10 par | 800,000 | 800,000 | |
Retained earnings | 768,000 | 394,000 | |
Total stockholders' equity | $ 2,068,000 | $ 1,494,000 | |
Total liabilities and stockholders' equity | $ 3,518,000 | $ 2,404,000 | |
Victor Audio Company | |||
Comparative Balance Sheet | |||
For the Years Ended December 31, 2016 and 2015 | |||
Assets | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash | $ 87,000 | $ 176,000 | |
Marketable securities | 258,000 | 335,000 | |
Accounts receivable (net) | 261,000 | 235,000 | |
Inventories | 212,000 | 190,000 | |
Prepaid expenses | 25,000 | 18,000 | |
Total current assets | $ 843,000 | $ 954,000 | |
Long-term investments | 1,000,000 | 400,000 | |
Property, plant, and equipment (net) | 1,675,000 | 1,050,000 | |
Total assets | $ 3,518,000 | $ 2,404,000 | |
Liabilities | |||
Current liabilities | $ 450,000 | $ 310,000 | |
Long-term liabilities: | |||
Mortgage note payable, 10%, due 2010 | $ 400,000 | $ - | |
Bonds payable, 12%, due 2009 | 600,000 | 600,000 | |
Total long-term liabilities | $ 1,000,000 | $ 600,000 | |
Total liabilities | $ 1,450,000 | $ 910,000 | |
Stockholders' Equity | |||
Preferred $8 stock, $100 par | $ 500,000 | $ 300,000 | |
Common stock, $10 par | 800,000 | 800,000 | |
Retained earnings | 768,000 | 394,000 | |
Total stockholders' equity | $ 2,068,000 | $ 1,494,000 | |
Total liabilities and stockholders' equity | $ 3,518,000 | $ 2,404,000 | |
The Market Price Per Share is $141.
Working capital | $ | ||
Numerator | Denominator | Calculated Answer | |
Current ratio | |||
Acid-test ratio | |||
Accounts receivable turnover | |||
Number of days' sales in receivables | |||
Inventory turnover | |||
Number of days' sales in inventory | |||
Ratio of fixed assets to long-term liabilities | |||
Ratio of liabilities to stockholders' equity | |||
Number of times interest charges earned | |||
Number of times preferred dividends earned | |||
Ratio of net sales to assets | |||
Rate earned on total assets | % | ||
Rate earned on stockholders' equity | % | ||
Rate earned on common stockholders' equity | % | ||
Earnings per share on common stock | $ | ||
Price-earnings ratio | |||
Dividends per share of common stock | $ | ||
Dividend yield | % | ||
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