Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Year Net Income Total Assets Stockholders' Equity Total Debt 20X1 $ 155,000 $ 2,390,000 $ 761,000 $ 1,629,000 20X2 191,000 2,700,000 966,000 1,734,000 20X3 208,000

Year Net Income Total Assets Stockholders' Equity Total Debt
20X1 $ 155,000 $ 2,390,000 $ 761,000 $ 1,629,000
20X2 191,000 2,700,000 966,000 1,734,000
20X3 208,000 2,730,000 1,770,000 960,000
20X4 192,000 2,470,000 2,220,000 250,000

Using the financial statements for the Snider Corporation, calculate the 13 basic ratios found in the chapter.

SNIDER CORPORATION Balance Sheet December 31, 20X1
Assets
Current assets:
Cash $ 52,200
Marketable securities 24,400
Accounts receivable (net) 222,000
Inventory 238,000
Total current assets $ 536,600
Investments 65,900
Plant and equipment. $615,000
Less: Accumulated depreciation 271,000
Net plant and equipment 344,000
Total assets $ 946,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 93,400
Notes payable 70,600
Accrued taxes 17,000
Total current liabilities $ 181,000
Long-term liabilities:
Bonds payable 153,200
Total liabilities $ 334,200
Stockholders' equity
Preferred stock, $50 par value $ 100,000
Common stock, $1 par value 80,000
Capital paid in excess of par 190,000
Retained earnings 242,300
Total stockholders' equity $ 612,300
Total liabilities and stockholders' equity $ 946,500

SNIDER CORPORATION Income Statement For the Year Ending December 31, 20X1
Sales (on credit) $ 2,064,000
Cost of goods sold 1,313,000
Gross profit $ 751,000
Selling and administrative expenses 496,000 *
Operating profit (EBIT) $ 255,000
Interest expense 26,900
Earnings before taxes (EBT) $ 228,100
Taxes 83,300
Earnings after taxes (EAT) $ 144,800

*Includes $36,100 in lease payments.

Using the above financial statements for the Snider Corporation, calculate the following ratios.

a. Profitability ratios. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

b. Assets utilization ratios. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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

Secured Finance Transactions

Authors: Dominic RM Griffiths

2nd Edition

1787425142, 978-1787425149

More Books

Students also viewed these Finance questions