Bettancort Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets $ 400,000 260,000 110,000 58,000 $ 450,000 300,000 130,000 67,000 153,000 $1,100,000 2,350,000 1,320,000 $4,770,000 Current assets: Cash ...... Marketable securities. Accounts receivable (net). Inventories ... Prepaid expenses Total current assets 139,000 $ 967,000 2,200,000 1,188,000 $4,355,000 Long-term investments Property, plant, and equipment (net) Total assets Liabilities $ 440,000 $ 400,000 Current liabilities. Long-term liabilities: Mortgage note payable, 8%, due 2021 Bonds payable, 5%, due 2017 Total long-term liabilities. Total liabilities $ 100,000 1,000,000 $1,100,000 $1,540,000 1,000,000 $1,000,000 $1,400,000 Stockholders' Equity Preferred $0.75 stock, $10 par Common stock, $10 par. Retained earnings. Total stockholders' equity. Total liabilities and stockholders' equity.. $ 200,000 100,000 2,930,000 $3,230,000 $ 200,000 100,000 2,655,000 $2,955,000 $4,355,000 $4,770,000 Instructions Determine the following measures for 2016, rounding to one decimal place: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 212 ldo1 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Number of times interest charges are earned 11. Number of times preferred dividends are earned 12. Ratio of sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield
Bettancort Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets $ 400,000 260,000 110,000 58,000 $ 450,000 300,000 130,000 67,000 153,000 $1,100,000 2,350,000 1,320,000 $4,770,000 Current assets: Cash ...... Marketable securities. Accounts receivable (net). Inventories ... Prepaid expenses Total current assets 139,000 $ 967,000 2,200,000 1,188,000 $4,355,000 Long-term investments Property, plant, and equipment (net) Total assets Liabilities $ 440,000 $ 400,000 Current liabilities. Long-term liabilities: Mortgage note payable, 8%, due 2021 Bonds payable, 5%, due 2017 Total long-term liabilities. Total liabilities $ 100,000 1,000,000 $1,100,000 $1,540,000 1,000,000 $1,000,000 $1,400,000 Stockholders' Equity Preferred $0.75 stock, $10 par Common stock, $10 par. Retained earnings. Total stockholders' equity. Total liabilities and stockholders' equity.. $ 200,000 100,000 2,930,000 $3,230,000 $ 200,000 100,000 2,655,000 $2,955,000 $4,355,000 $4,770,000 Instructions Determine the following measures for 2016, rounding to one decimal place: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 212 ldo1 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Number of times interest charges are earned 11. Number of times preferred dividends are earned 12. Ratio of sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bettancort Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
Dec. 31, 2016
Dec. 31, 2015
Assets
$ 450,000
300,000
$ 400,000
260,000
Current assets:
Cash ....
Marketable securities.
Accounts receivable (net)
Inventories .. .
Prepaid expenses
Total current assets
110,000
58,000
130,000
67,000
153,000
$1,100,000
2,350,000
1,320,000
$4,770,000
139,000
$ 967,000
2,200,000
1,188,000
$4,355,000
Long-term investments.
Property, plant, and equipment (net)
Total assets
Liabilities
$ 440,000
$ 400,000
Current liabilities.
Long-term liabilities:
Mortgage note payable, 8%, due 2021.
Bonds payable, 5%, due 2017
Total long-term liabilities
Total liabilities
$ 100,000
1,000,000
$1,100,000
$1,540,000
1,000,000
$1,000,000
$1,400,000
Stockholders' Equity
$ 200,000
Preferred $0.75 stock, $10 par
Common stock, $10 par.
Retained earnings....
Total stockholders' equity.....
Total liabilities and stockholders' equity.
$ 200,000
100,000
2,930,000
$3,230,000
$4,770,000
100,000
2,655,000
$2,955,000
$4,355,000
Instructions
Determine the following measures for 2016, rounding to one decimal place:
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables
6. Inventory turnover
7. Number of days' sales in inventory
H21 meldo1
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets
14. Rate earned on stockholders' equity
15. Rate earned on common stockholders' equity
16. Earnings per share on common stock
17. Price-earnings ratio
18. Dividends per share of common stock
19. Dividend yield
Transcribed Image Text:ов. 2, 3
PR 15-4A Nineteen measures of solvency and profitability
f days'
bles, 36.5
of Bettancort Inc. common stock was $71.25 on December 31, 2016.
Bettancort Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
2015
2016
$2,400,000
280,000
Retained earnings, January 1..
Add net income for year
$2,655,000
300,000
$2,955,000
$2,680,000
Total
Deduct dividends:
$
15,000
$
15,000
On preferred stock
On common stock. .
Total.......
10,000
10,000
25,000
$2,930,000
25,000
$2,655,000
Retained earnings, December 31
Bettancort Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
2016
2015
Sales.
$1,000,000
475,000
$ 525,000
$ 200,000
150,000
$ 350,000
$ 175,000
225,000
$ 400,000
$1,200,000
Cost of goods sold..
Gross profit.
Selling expenses
Administrative expenses..
Total operating expenses
Income from operations
500,000
$ 700,000
$ 240,000
180,000
$ 420,000
$ 280,000
Other income..
166,000
$ 446,000
Other expense (interest)
Income before income tax
Income tax expense..
Net income.
66,000
$ 380,000
80,000
$ 300,000
60,000
$ 340,000
60,000
$ 280,000
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