WCY Help System Announcements Problem 14-4 Financial information for Ernie Bishop Company is presented below. 2015 ERNIE BISHOP COMPANY Statements of Financial Position December 31 2016 Assets 157,300 Land Building and equipment (net) 203,280 Prepaid expenses 35,090 Inventory 151,250 Receivables (net) 118,580 Short-term investments 62,920 Cash 84,700 813,120 Equity and Liabilities Share capital-ordinary, 10 par 242,000 Retained earnings 157,300 Bonds payable, due 2016 181,500 Notes payable 121,000 Accounts payable 58,080 Accrued liabilities 53,240 813,120 211,750 27,830 163,350 96,800 48,400 78,650 784,080 242,000 140,360 181,500 121,000 50,820 48,400 784,080 ERNIE BISHOP COMPANY Income Statement For the Years Ended December 31 2016 C1,038,180 Cost of goods sold 739,310 298,870 247.445 51.425 2015 965,580 695,750 269,830 219,010 50.8.20 Inventory Receivables (net) Short-term investments Cash 151,250 118,580 62,920 84,700 813,120 163,350 96,800 48,400 78,650 784,080 Equity and Liabilities Share capital-ordinary, 10 par Retained earnings Bonds payable, due 2016 Notes payable Accounts payable Accrued liabilities 242,000 157,300 181,500 121,000 58,080 53,240 813,120 242,000 140,360 181,500 121,000 50,820 48,400 784,080 ERNIE BISHOP COMPANY Income Statement For the Years Ended December 31 2016 Net sales 1,038,180 Cost of goods sold 739,310 Gross profit 298,870 Operating expenses 247,445 Net income 51,425 2015 965,580 695,750 269,830 219,010 50,820 Additional information: 2. 1. Inventory at the beginning of 2015 was 142,780. Total assets at the beginning of 2015 were 764.720. 3. No ordinary shares transactions occurred during 2015 o 2016 4. All sales were on account 5. Receivables (net) at the beginning of 2015 were 106.480. Notes payable are dassified as a current liability the body and profitab ratio of metshop Company from 2015 to 2016 Return to Blackboard eygandt, Financial Accounting: IFRS, 3e elp System Announcements aunts receivables turnover entory turnover OFITABILITY it margin et turnover times times times times times times urn on assets nings per share wen below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2016, and situation. Net income for 2017 was 60,500. Total assets on December 31, 2017, were 847,000. (Round ratios to I decimal place, eg. 6.8 or 6.896.) 1) 2) 3) Situation 21,780 ordinary shares were sold at par on July 1, 2017. There were no dividends in 2017. All of the notes payable were paid in 2017. The only change in liabilities was that the notes payable were paid. Market price of ordinary shares was 11 on December 31, 2016, and 15.13 on December 31, 2017 Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio 201 2017 Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio % times By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor, Question Attempts: 0 of 1 Earn Maximum Points answer this question times . For each situation, compute the affected ratio (1) as of December 31, 2016, and (2) as of December 31, 2017, after giving effect to 1, 2017, were 847,000. (Round ratios to 1 decimal place, e.g. 6.8 or 6.8%.) no dividends in 2017. es was that the notes payable were paid. 15.13 on December 31, 2017. Ratio Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio 2017 Change times s based on the Point Potential Policy set by your instructor. Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Earn Maximum Points available only if you answer this question correctly in your first attempt. /14/2020 WCY Help System Announcements Problem 14-4 Financial information for Ernie Bishop Company is presented below. 2015 ERNIE BISHOP COMPANY Statements of Financial Position December 31 2016 Assets 157,300 Land Building and equipment (net) 203,280 Prepaid expenses 35,090 Inventory 151,250 Receivables (net) 118,580 Short-term investments 62,920 Cash 84,700 813,120 Equity and Liabilities Share capital-ordinary, 10 par 242,000 Retained earnings 157,300 Bonds payable, due 2016 181,500 Notes payable 121,000 Accounts payable 58,080 Accrued liabilities 53,240 813,120 211,750 27,830 163,350 96,800 48,400 78,650 784,080 242,000 140,360 181,500 121,000 50,820 48,400 784,080 ERNIE BISHOP COMPANY Income Statement For the Years Ended December 31 2016 C1,038,180 Cost of goods sold 739,310 298,870 247.445 51.425 2015 965,580 695,750 269,830 219,010 50.8.20 Inventory Receivables (net) Short-term investments Cash 151,250 118,580 62,920 84,700 813,120 163,350 96,800 48,400 78,650 784,080 Equity and Liabilities Share capital-ordinary, 10 par Retained earnings Bonds payable, due 2016 Notes payable Accounts payable Accrued liabilities 242,000 157,300 181,500 121,000 58,080 53,240 813,120 242,000 140,360 181,500 121,000 50,820 48,400 784,080 ERNIE BISHOP COMPANY Income Statement For the Years Ended December 31 2016 Net sales 1,038,180 Cost of goods sold 739,310 Gross profit 298,870 Operating expenses 247,445 Net income 51,425 2015 965,580 695,750 269,830 219,010 50,820 Additional information: 2. 1. Inventory at the beginning of 2015 was 142,780. Total assets at the beginning of 2015 were 764.720. 3. No ordinary shares transactions occurred during 2015 o 2016 4. All sales were on account 5. Receivables (net) at the beginning of 2015 were 106.480. Notes payable are dassified as a current liability the body and profitab ratio of metshop Company from 2015 to 2016 Return to Blackboard eygandt, Financial Accounting: IFRS, 3e elp System Announcements aunts receivables turnover entory turnover OFITABILITY it margin et turnover times times times times times times urn on assets nings per share wen below are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2016, and situation. Net income for 2017 was 60,500. Total assets on December 31, 2017, were 847,000. (Round ratios to I decimal place, eg. 6.8 or 6.896.) 1) 2) 3) Situation 21,780 ordinary shares were sold at par on July 1, 2017. There were no dividends in 2017. All of the notes payable were paid in 2017. The only change in liabilities was that the notes payable were paid. Market price of ordinary shares was 11 on December 31, 2016, and 15.13 on December 31, 2017 Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio 201 2017 Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio % times By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor, Question Attempts: 0 of 1 Earn Maximum Points answer this question times . For each situation, compute the affected ratio (1) as of December 31, 2016, and (2) as of December 31, 2017, after giving effect to 1, 2017, were 847,000. (Round ratios to 1 decimal place, e.g. 6.8 or 6.8%.) no dividends in 2017. es was that the notes payable were paid. 15.13 on December 31, 2017. Ratio Return on ordinary shareholders' equity Debt to total assets Price-earnings ratio 2017 Change times s based on the Point Potential Policy set by your instructor. Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Earn Maximum Points available only if you answer this question correctly in your first attempt. /14/2020