877 Stargel Inc. Comparative Income Statement the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales...... $10,000,000 $9,400,000 Cost of goods sold. Gross profit Selling expenses. Administrative expenses. 5,350,000 $ 4,650,000 $ 2,000,000 4,950,000 $4,450,000 $1,880,000 Total operating expenses Income from operations Other revenue. 1,500,000 $ 3,500,000 $ 1,150,000 150,000 $ 1,300,000 1,410,000 $3,290,000 $1,160,000 140,000 $1,300,000 Other expense (interest) Income before income tax Income tax expense. Net income. 170,000 $ 1,130,000 150,000 $1,150,000 230,000 225,000 $ 900,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Υ1 Assets Current assets: Cash $ 500,000 1,010,000 $ 400,000 Marketable securities. 1,000,000 Accounts receivable (net) 740,000 510,000 Inventories... 1,190,000 950,000 Prepaid expenses 250,000 $3,690,000 2,350,000 229,000 Total current assets. $3,089,000 Long-term investments. Property, plant, and equipment (net) Total assets. 2,300,000 3,740,000 $9,780,000 3,366,000 $8,755,000 Liabilities Current liabilities.. $ 900,000 $ 880,000 Long-term liabilities: Mortgage note payable, 10%. Bonds payable, 10%. Total long-term liabilities Total liabilities $ 200,000 1,500,000 1,500,000 $1,700,000 $2,600,000 $1,500,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par.. Common stock, $5 par. Retained earnings. Total stockholders' equity.. Total liabilities and stockholders' equity. $ 500,000 $ 500,000 500,000 500,000 6,180,000 $7,180,000 5,375,000 $6,375,000 $8,755,000 $9,780,000 Instructions Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 1. Accounts receivable turnover 5. Number of days' sales in receivables (Continued) PR 17-4B Measures of liquidity, solvency and profitability Stargel common stock was $119.70 on December 31, 20Y2. The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January Net income Total Dividends: Preferred stock dividends. Common stock dividends. Total dividends........ Retained earnings, December 31
877 Stargel Inc. Comparative Income Statement the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales...... $10,000,000 $9,400,000 Cost of goods sold. Gross profit Selling expenses. Administrative expenses. 5,350,000 $ 4,650,000 $ 2,000,000 4,950,000 $4,450,000 $1,880,000 Total operating expenses Income from operations Other revenue. 1,500,000 $ 3,500,000 $ 1,150,000 150,000 $ 1,300,000 1,410,000 $3,290,000 $1,160,000 140,000 $1,300,000 Other expense (interest) Income before income tax Income tax expense. Net income. 170,000 $ 1,130,000 150,000 $1,150,000 230,000 225,000 $ 900,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Υ1 Assets Current assets: Cash $ 500,000 1,010,000 $ 400,000 Marketable securities. 1,000,000 Accounts receivable (net) 740,000 510,000 Inventories... 1,190,000 950,000 Prepaid expenses 250,000 $3,690,000 2,350,000 229,000 Total current assets. $3,089,000 Long-term investments. Property, plant, and equipment (net) Total assets. 2,300,000 3,740,000 $9,780,000 3,366,000 $8,755,000 Liabilities Current liabilities.. $ 900,000 $ 880,000 Long-term liabilities: Mortgage note payable, 10%. Bonds payable, 10%. Total long-term liabilities Total liabilities $ 200,000 1,500,000 1,500,000 $1,700,000 $2,600,000 $1,500,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par.. Common stock, $5 par. Retained earnings. Total stockholders' equity.. Total liabilities and stockholders' equity. $ 500,000 $ 500,000 500,000 500,000 6,180,000 $7,180,000 5,375,000 $6,375,000 $8,755,000 $9,780,000 Instructions Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 1. Accounts receivable turnover 5. Number of days' sales in receivables (Continued) PR 17-4B Measures of liquidity, solvency and profitability Stargel common stock was $119.70 on December 31, 20Y2. The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January Net income Total Dividends: Preferred stock dividends. Common stock dividends. Total dividends........ Retained earnings, December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a spreedsheet is needed to complete for this question. PR17-04b from Cegage accounting 2 (financial statement analysis)
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