Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover
Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.19P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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Question
I uploaded pictures for problem 17-4B.
I am trying to figure out the
4. | ||
turnover | ||
5. | Number of days' | |
sales in receivables | ||
6. | Inventory turnover |
![PR 17-4B Measures of liquidity, solvency and profitability
The comparative financial statements of Stargel Inc are as follows. The market price of
Stargel common stock was $119.70 on December 31, 20Y2.
Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Retained earnings, January 1
$5,375,000
$4,545,000
Net income
925,000
Total...
$6,275,000
$5,470,000
Dividends:
Preferred stock dividends
$ 45,000
Common stock dividends
Total dividends
Retained earnings, December 31
$6,180,000
$5,375,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88ac8384-4bae-4007-928f-e2bde9260c81%2Fb5aa8620-9897-4a5e-84a9-b3f82a0b2a37%2Ftpdf7vt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PR 17-4B Measures of liquidity, solvency and profitability
The comparative financial statements of Stargel Inc are as follows. The market price of
Stargel common stock was $119.70 on December 31, 20Y2.
Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Retained earnings, January 1
$5,375,000
$4,545,000
Net income
925,000
Total...
$6,275,000
$5,470,000
Dividends:
Preferred stock dividends
$ 45,000
Common stock dividends
Total dividends
Retained earnings, December 31
$6,180,000
$5,375,000
![percentages, except for per-share amounts:
877
Stargel Inc.
Comparative Income Statement
ar the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Sales
$10,000,000
$9,400,000
Cost of goods sold..
Gross profit.
5,350,000
$ 4,650,000
$ 2,000,000
4,950,000
$4,450,000
Selling expenses
Administrative expenses.
$1,880,000
1,500,000
1,410,000
Total operating expenses
Income from operations
Other revenue...
$ 3,500,000
$ 1,150,000
$3,290,000
$1,160,000
150,000
140,000
$ 1,300,000
$1,300,000
Other expense (interest)
Income before income tax
170,000
150,000
$1,150,000
$ 1,130,000
Income tax expense.
230,000
225,000
Net income
$ 9.00,000
$ 925,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Assets
Current assets:
Cash
$ 500,000
$ 400,000
Marketable securities.
1,010,000
1,000,000
Accounts receivable (net).
740,000
510,000
Inventories
1,190,000
950,000
Prepaid expenses
Total current assets..
250,000
229,000
$3,690,000
$3,089,000
Long-term investments..
Property, plant, and equipment (net)
2,350,000
2,300,000
3,740,000
3,366,000
Total assets
$9,780,000
$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
$
01
1,500,000
1,500,000
$1,700,000
$1,500,000
$2,600,000
$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par...
Common stock, $5 par.
Retained earnings..
$ 500,000
$ 500,000
500,000
500,000
6,180,000
5,375,000
Total stockholders' equity
$7,180,000
$6,375,000
Total liabilities and stockholders' equity.
$9,780,000
$8,755,000
Instructions
Determine the following measures for 20Y2, rounding to one decimal place including](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88ac8384-4bae-4007-928f-e2bde9260c81%2Fb5aa8620-9897-4a5e-84a9-b3f82a0b2a37%2Fiu6h6rq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:percentages, except for per-share amounts:
877
Stargel Inc.
Comparative Income Statement
ar the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Sales
$10,000,000
$9,400,000
Cost of goods sold..
Gross profit.
5,350,000
$ 4,650,000
$ 2,000,000
4,950,000
$4,450,000
Selling expenses
Administrative expenses.
$1,880,000
1,500,000
1,410,000
Total operating expenses
Income from operations
Other revenue...
$ 3,500,000
$ 1,150,000
$3,290,000
$1,160,000
150,000
140,000
$ 1,300,000
$1,300,000
Other expense (interest)
Income before income tax
170,000
150,000
$1,150,000
$ 1,130,000
Income tax expense.
230,000
225,000
Net income
$ 9.00,000
$ 925,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Assets
Current assets:
Cash
$ 500,000
$ 400,000
Marketable securities.
1,010,000
1,000,000
Accounts receivable (net).
740,000
510,000
Inventories
1,190,000
950,000
Prepaid expenses
Total current assets..
250,000
229,000
$3,690,000
$3,089,000
Long-term investments..
Property, plant, and equipment (net)
2,350,000
2,300,000
3,740,000
3,366,000
Total assets
$9,780,000
$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
$
01
1,500,000
1,500,000
$1,700,000
$1,500,000
$2,600,000
$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par...
Common stock, $5 par.
Retained earnings..
$ 500,000
$ 500,000
500,000
500,000
6,180,000
5,375,000
Total stockholders' equity
$7,180,000
$6,375,000
Total liabilities and stockholders' equity.
$9,780,000
$8,755,000
Instructions
Determine the following measures for 20Y2, rounding to one decimal place including
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