Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What will be the cost to assist with the attached assignment? I need the assignment to be completed in the next 3-4 hours Problem 18-1A

What will be the cost to assist with the attached assignment? I need the assignment to be completed in the next 3-4 hours

image text in transcribed Problem 18-1A Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016. Farris Company 2017 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense 2016 Ratzlaff Company 2017 2016 $1,570,000 $339,400 1,080,000 241,100 301,200 80,000 8,300 2,200 54,300 6,400 Current assets 320,000 $314,200 82,300 $78,600 Plant assets (net) 521,700 500,000 139,200 124,500 30,600 Current liabilities 65,400 74,600 36,400 Long-term liabilities 108,400 89,800 29,200 25,400 Common stock, $10 par 498,000 498,000 117,000 117,000 Retained earnings 169,900 151,800 38,900 30,100 Prepare a vertical analysis of the 2017 income statement data for Farris Company and Ratzlaff Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement Farris Company Dollars Ratzlaff Company Percent Dollars $ Percent $ % % % % % % % % % % % % % % % % $ $ % % LINK TO TEXT LINK TO TEXT Compute the return on assets and the return on common stockholders' equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.) Farris Company Ratzlaff Company Return on assets % % Return on common stockholders' equity % % LINK TO TEXT LINK TO TEXT Problem 18-2A The comparative statements of Painter Tool Company are presented below. PAINTER TOOL COMPANY Income Statement For the Years Ended December 31 2017 Net sales 2016 $1,815,700 $1,749,500 1,011,000 981,000 Gross profit 804,700 768,500 Selling and administrative expenses 515,000 477,600 Income from operations 289,700 290,900 19,000 14,300 270,700 276,600 80,800 76,700 Cost of goods sold Other expenses and losses Interest expense Income before income taxes Income tax expense Net income $ 189,900 $ 199,900 PAINTER TOOL COMPANY Balance Sheets December 31 Assets 2017 2016 $60,900 $63,800 68,900 51,000 Accounts receivable (net) 116,700 102,300 Inventory 123,800 115,700 370,300 332,800 Current assets Cash Short-term investments Total current assets Plant assets (net) Total assets 600,600 517,800 $970,900 $850,600 $159,900 $144,200 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable 44,000 42,600 203,900 186,800 202,200 202,200 406,100 389,000 Common stock ($5 par) 279,200 297,100 Retained earnings 285,600 164,500 Total current liabilities Bonds payable Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 564,800 461,600 $970,900 $850,600 All sales were on account. Compute the following ratios for 2017. (Weighted-average common shares in 2017 were 58,400.) (Round Earnings per share, Current ratio and Acid-test ratio to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) $ (a) Earnings per share (b) Return on common stockholders' equity % (c) Return on assets % (d) Current ratio :1 (e) Acid-test ratio :1 (f) Accounts receivable turnover times (g) Inventory turnover times (h) Times interest earned times (i) Asset turnover (j) Debt to assets ratio times %

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_2

Step: 3

blur-text-image_3

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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

5th Canadian edition

1259269868, 978-1259269868

More Books

Students also viewed these Accounting questions

Question

Be relaxed at the hips

Answered: 1 week ago