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Current ratio

Current ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Curent Llabilities Cument Assets Calculated Value 1. Working capital: Ratio Numerator Denominator Calculated Value 2 Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory tumover 7. Number of days' sales in inventory 8. Ratio of Fixed assets to long-term liabilities 9. Ratio of labilities to stockholders' equity Pr. 17-48 9. Ratio of lablities to stockholders' equity 10. Times interest eamed 11. Asset turnover 12. Return on total assets 13. Retum on stockholders equity 14. Return on common stockholders' equity Eamings per share on common stock 15. 16. Price-eamings ratio 17. Dividends per share of common stock 18. Dividend yield
Transcribed Image Text:Curent Llabilities Cument Assets Calculated Value 1. Working capital: Ratio Numerator Denominator Calculated Value 2 Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory tumover 7. Number of days' sales in inventory 8. Ratio of Fixed assets to long-term liabilities 9. Ratio of labilities to stockholders' equity Pr. 17-48 9. Ratio of lablities to stockholders' equity 10. Times interest eamed 11. Asset turnover 12. Return on total assets 13. Retum on stockholders equity 14. Return on common stockholders' equity Eamings per share on common stock 15. 16. Price-eamings ratio 17. Dividends per share of common stock 18. Dividend yield
Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 2010 $5,375,000 $4,545,000 Retained earnings, January 1. 900,000 925,000 Net income $6,275,000 $5,470,000 Total Dividends: Preferred stock dividends... $ 45,000 $ 45,000 50,000 $ 95,000 $6,180,000 50,000 2$ $5,375,000 Common stock dividends. 95,000 Total dividends....... Retained earnings, December 31 Chapter 17 Financial Statement Analysis 877 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Sales 20Υ2 20Y1 Cost of goods sold.. Gross profit Selling expenses Administrative expenses.. Total operating expenses Income from operations $10,000.000 5,350.000 $ 4650,000 $9,400,000 4,950.000 $450,000 $ 2,000,000 1,500,000 $ 3.500.000 $ 1,150,000 $1,880,000 1,410,000 $3.290,000 $1,160,000 Other revenue 150,000 140.000 $ 1,300.000 Other expense (interest). Income before income tax $1,300,000 170.000 150.000 Income tax expense $ 1,130,000 $1,150,000 Net income 230,000 225,000 $ 900,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash.... S 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 250,000 229,000 Total current assets. $3,690,000 Long-term investments Property, plant, and equipment (net) $3.089,000 2,300,000 2,350,000 3,740,000 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities.. $ 900.000 S 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 $1,500,000 $1,700,000 $2,600,000 $2,380,000 Stockholders' Equity $ 500,000 $ 500,000 500,000 Preferred 50.90 stock, $10 par Common stock, $5 par. 500,000 5,375,000 $6.375,000 Retained earnings... 6,180,000 Total stockholders' equity $7,180,000 Total liabilities and stockholders' equity... $9,780,000 $8,755,000
Transcribed Image Text:Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 2010 $5,375,000 $4,545,000 Retained earnings, January 1. 900,000 925,000 Net income $6,275,000 $5,470,000 Total Dividends: Preferred stock dividends... $ 45,000 $ 45,000 50,000 $ 95,000 $6,180,000 50,000 2$ $5,375,000 Common stock dividends. 95,000 Total dividends....... Retained earnings, December 31 Chapter 17 Financial Statement Analysis 877 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Sales 20Υ2 20Y1 Cost of goods sold.. Gross profit Selling expenses Administrative expenses.. Total operating expenses Income from operations $10,000.000 5,350.000 $ 4650,000 $9,400,000 4,950.000 $450,000 $ 2,000,000 1,500,000 $ 3.500.000 $ 1,150,000 $1,880,000 1,410,000 $3.290,000 $1,160,000 Other revenue 150,000 140.000 $ 1,300.000 Other expense (interest). Income before income tax $1,300,000 170.000 150.000 Income tax expense $ 1,130,000 $1,150,000 Net income 230,000 225,000 $ 900,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash.... S 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 250,000 229,000 Total current assets. $3,690,000 Long-term investments Property, plant, and equipment (net) $3.089,000 2,300,000 2,350,000 3,740,000 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities.. $ 900.000 S 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 $1,500,000 $1,700,000 $2,600,000 $2,380,000 Stockholders' Equity $ 500,000 $ 500,000 500,000 Preferred 50.90 stock, $10 par Common stock, $5 par. 500,000 5,375,000 $6.375,000 Retained earnings... 6,180,000 Total stockholders' equity $7,180,000 Total liabilities and stockholders' equity... $9,780,000 $8,755,000
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