Condensed balance sheet and income statement data for Bridgeport Corporation are presented here. Bridgeport Corporation Balance Sheets December 31 2020 2019 2018 Cash $ 32,000 $ 22,000 $ 20,000 Accounts receivable (net) 52,000 47,000 50,000 Other current assets 93,000 98,000 67,000 Investments 58,000 73,000 48,000 Plant and equipment (net) 500,000 370,000 358,000 $735,000 $610,000 $543,000 Current liabilities $ 87,000 $ 82,000 $ 72,000 Long-term debt 148,000 88,000 53,000 Common stock, $10 par 323,000 313,000 303,000 Retained earnings 177,000 127,000 115,000 $735,000 $610,000 $543,000 Bridgeport Corporation Income Statements For the Years Ended December 31 2020 2019 Sales revenue $743,000 $603,000 Less: Sales returns and allowances 42,000 32,000 Net sales 701,000 571,000 Cost of goods sold 428,000 353,000 Gross profit 273,000 218,000 Operating expenses (including income taxes) 182,000 152,000 Net income $ 91,000 $ 66,000 Additional information: 1. The market price of Bridgeport’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively. 2. You must compute dividends paid. All dividends were paid in cash. (a) Compute the following ratios for 2019 and 2020. (Round answers to 2 decimal places, e.g. 1.83 or 1.83%.) 2020 2019 Profit margin % % Gross profit rate % % Asset turnover times time

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Condensed balance sheet and income statement data for Bridgeport Corporation are presented here.

Bridgeport Corporation Balance Sheets December 31
	2020	2019	2018
Cash	$ 32,000	$ 22,000	$ 20,000
Accounts receivable (net)	52,000	47,000	50,000
Other current assets	93,000	98,000	67,000
Investments	58,000	73,000	48,000
Plant and equipment (net)	500,000	370,000	358,000
	$735,000	$610,000	$543,000
Current liabilities	$ 87,000	$ 82,000	$ 72,000
Long-term debt	148,000	88,000	53,000
Common stock, $10 par	323,000	313,000	303,000
Retained earnings	177,000	127,000	115,000
	$735,000	$610,000	$543,000

Bridgeport Corporation Income Statements For the Years Ended December 31
	2020	2019
Sales revenue	$743,000	$603,000
Less: Sales returns and allowances	42,000	32,000
Net sales	701,000	571,000
Cost of goods sold	428,000	353,000
Gross profit	273,000	218,000
Operating expenses (including income taxes)	182,000	152,000
Net income	$ 91,000	$ 66,000

Additional information:

1.		The market price of Bridgeport’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively.
2.		You must compute dividends paid. All dividends were paid in cash.

(a)

Compute the following ratios for 2019 and 2020. (Round answers to 2 decimal places, e.g. 1.83 or 1.83%.)

	2020		2019
Profit margin		%			%
Gross profit rate		%			%
Asset turnover		times			times
Earnings per share	$			$
Price-earnings ratio		times			times
Payout ratio		%			%
Debt to assets ratio		%			%

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