Use the financial statements for Allendale Company from Problem 9-17A to calculate the following ratios for Year 4 and Year 3:

a. Working capital.

b. Current ratio.

c. Quick ratio.

d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000).

e. Average days to collect accounts receivable.

f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000).

g. Number of days to sell inventory.

h. Debt-to-assets ratio.

i. Debt-to-equity ratio.

j. Number of times interest was earned.

k. Plant assets to long-term debt.

l. Net margin.

m. Turnover of assets.

n. Return on investment.

o. Return on equity.

p. Earnings per share.

q. Book value per share of common stock.

r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50).

s. Dividend yield on common stock.

Problem 9-17A

Transcribed Image Text:

ALLENDALE COMPANY Balance Sheets As of December 31 Year 4 Year 3 Assets Current assets $ 40,000 $ 36,000 6,000 46,000 143,000 10,000 Cash Marketable securities 20,000 54,000 135,000 Accounts receivable (net) Inventories Prepaid items 25,000 274,000 241,000 20,000 Total current assets Investments 27,000 Plant (net) Land 270,000 29,000 255,000 24,000 Total assets $600,000 $540,000 Liabilities and Stockholders' Equlty Liabilities Current liabilities $ 17,000 Notes payable Accounts payable Salaries payable $ 6,000 100,000 15,000 113,800 21,000 Total current liabilities 151,800 121,000 Noncurrent liabilities Bonds payable Other 100,000 32,000 100,000 27,000 Total noncurrent liabilities 132,000 127,000 248,000 Total liabilities 283,800 Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating; 8,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 80,000 80,000 80,000 80,000 156,200 132,000 316,200 292,000 $600,000 $540,000