10. Choice (You must choose 6 questions from among #'s 5-13 to answer): Condensed financial statements for Robeson Company appear below: Comparative Balance Sheets 2014 $ 128,000 472,000 797,000 81,000 2013 $ 201,000 438,000 673,000 92,000 2,428,000 $3,832,000 Cash Accounts receivable Inventories Prepaid expenses Plant and equipment (net) Total assets 2,655,000 $4,133,000 $ 198,000 1,000,000 450,000 $ 280,600 1,000,000 450,000 Accounts payable Long-term bonds payable Preferred stock, 10%, $100 par Common stock, no par Retained earnings Total liabilities and equities 1,800,000 685,000 1,800,000 301,400 $3,832,000 $4,133,000 Income Statement December 31, 2014 Sales, net $5,400,000 Less cost of goods sold Gross margin Less operating expenses Net operating income Interest expense Net income before taxes 3,240,000 2,160,000 1,010,000 1,150,000 80,000 1,070,000 321,000 $ 749,000 Less income taxes Net income There were 72,000 shares of common stock outstanding throughout the 2014. Dividends on common stock amounted to $320,400 and dividends on preferred stock amounted to $45,000. The market value of a share c common stock was $54 at the end of 2014. The income tax rate is 30%. Refer to the preceding financial statements and other information. Calculate the following ratios 2014. Working Capital Current Ratio A. В. С. Inventory Turnover
10. Choice (You must choose 6 questions from among #'s 5-13 to answer): Condensed financial statements for Robeson Company appear below: Comparative Balance Sheets 2014 $ 128,000 472,000 797,000 81,000 2013 $ 201,000 438,000 673,000 92,000 2,428,000 $3,832,000 Cash Accounts receivable Inventories Prepaid expenses Plant and equipment (net) Total assets 2,655,000 $4,133,000 $ 198,000 1,000,000 450,000 $ 280,600 1,000,000 450,000 Accounts payable Long-term bonds payable Preferred stock, 10%, $100 par Common stock, no par Retained earnings Total liabilities and equities 1,800,000 685,000 1,800,000 301,400 $3,832,000 $4,133,000 Income Statement December 31, 2014 Sales, net $5,400,000 Less cost of goods sold Gross margin Less operating expenses Net operating income Interest expense Net income before taxes 3,240,000 2,160,000 1,010,000 1,150,000 80,000 1,070,000 321,000 $ 749,000 Less income taxes Net income There were 72,000 shares of common stock outstanding throughout the 2014. Dividends on common stock amounted to $320,400 and dividends on preferred stock amounted to $45,000. The market value of a share c common stock was $54 at the end of 2014. The income tax rate is 30%. Refer to the preceding financial statements and other information. Calculate the following ratios 2014. Working Capital Current Ratio A. В. С. Inventory Turnover
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10. Choice (You must choose 6 questions from among #'s 5-13 to answer):
Condensed financial statements for Robeson Company appear below:
Comparative Balance Sheets
2014
$ 128,000
472,000
2013
$ 201,000
438,000
Cash
Accounts receivable
Inventories
797,000
673,000
81,000
92,000
Prepaid expenses
Plant and equipment (net)
Total assets
2,655,000
$4,133,000
2,428,000
$3,832,000
$ 280,600
1,000,000
450,000
1,800,000
301,400
$3,832,000
$ 198,000
1,000,000
Accounts payable
Long-term bonds payable
Preferred stock, 10%, $100 par
Common stock, no par
Retained earnings
Total liabilities and equities
450,000
1,800,000
685,000
$4,133,000
Income Statement
December 31, 2014
$5,400,000
3,240,000
2,160,000
Sales, net
Less cost of goods sold
Gross margin
Less operating expenses
Net operating income
Interest expense
Net income before taxes
1,010,000
1,150,000
80,000
1,070,000
321,000
$ 749,000
Less income taxes
Net income
There were 72,000 shares of common stock outstanding throughout the 2014. Dividends on common stock
amounted to $320,400 and dividends on preferred stock amounted to $45,000. The market value of a share of
common stock was $54 at the end of 2014. The income tax rate is 30%.
Refer to the preceding financial statements and other information. Calculate the following ratios for
2014.
Working Capital
Current Ratio
A.
В.
Inventory Turnover
Gross Profit Percentage
С.
D.
Е.
Accounts Receivable Turnover
F.
Debt Ratio
Debt to Equity Ratio
Profit Margin Ratio
Earnings per Share
Price/Earnings Ratio
G.
Н.
I.
J.
DEIDRE ROGERS
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