Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Year 2 Year 1 Revenues $ 219,700 $ 180,300 Expenses Cost of goods sold 124,400 102,600 Selling expenses 20,500 18,500 General and administrative expenses 9,600

Year 2 Year 1 Revenues $ 219,700 $ 180,300 Expenses Cost of goods sold 124,400 102,600 Selling expenses 20,500 18,500 General and administrative expenses 9,600 8,600 Interest expense 1,300 1,300 Income tax expense 19,800 16,900 Total expenses 175,600 147,900 Net income $ 44,100 $ 32,400 Assets Current assets Cash $ 5,500 $ 6,200 Marketable securities 2,300 2,300 Accounts receivable 35,900 31,400 Inventories 101,400 94,400 Prepaid expenses 4,300 3,300 Total current assets 149,400 137,600 Plant and equipment (net) 106,800 106,800 Intangibles 20,500 0 Total assets $ 276,700 $ 244,400 Liabilities and Stockholders Equity Liabilities Current liabilities Accounts payable $ 38,700 $ 34,900 Other 15,800 16,900 Total current liabilities 54,500 51,800 Bonds payable 65,600 66,600 Total liabilities 120,100 118,400 Stockholders equity Common stock (43,000 shares) 114,200 114,200 Retained earnings 42,400 11,800 Total stockholders equity 156,600 126,000 Total liabilities and stockholders equity $ 276,700 $ 244,400

Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. Round answers using two decimal places

Return on Investment:

Return on equity:

Book value per share of common stock:

Working Capitol

Debt to equity ratio:

Debt to assets ratio:

Please give answers for both year one and year two

note year two is listed first in the chart given- thank you

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

Accounting And Financial Management For Residential Construction

Authors: Emma Shinn

6th Edition

0867187816, 9780867187816

More Books

Students also viewed these Accounting questions

Question

Why is the capability to relocate processes desirable?

Answered: 1 week ago