Determine the following measures for 20Y2, rounding to one decimal place including, percentage, except for per-share amounts. 6. Inventory Turnover 7. number of days sale in inventory 8. Ratio of fixed assets to long-term liabilities 9. ratio of liabilities to stockholders equity 10. times interest earned 11. asset turnover 12. return on total asset 13. return on stockholders equity 14. return on common stockholders equity 15. earnings per share on common stock 16. price-earnings ratio 17. dividends per share of common stock 18. dividend yield
Determine the following measures for 20Y2, rounding to one decimal place including, percentage, except for per-share amounts. 6. Inventory Turnover 7. number of days sale in inventory 8. Ratio of fixed assets to long-term liabilities 9. ratio of liabilities to stockholders equity 10. times interest earned 11. asset turnover 12. return on total asset 13. return on stockholders equity 14. return on common stockholders equity 15. earnings per share on common stock 16. price-earnings ratio 17. dividends per share of common stock 18. dividend yield
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Determine the following measures for 20Y2, rounding to one decimal place including, percentage, except for per-share amounts.
6. Inventory Turnover
7. number of days sale in inventory
8. Ratio of fixed assets to long-term liabilities
9. ratio of liabilities to
10. times interest earned
11. asset turnover
12. return on total asset
13. return on stockholders equity
14. return on common stockholders equity
15. earnings per share on common stock
16. price-earnings ratio
17. dividends per share of common stock
18. dividend yield
![PR17-4B 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
%244,545,000
Net income
925,000
Total
$6,275,000
%245,470,000
Dividends:
Preferred stock dividends
%2 45,000
Common stock dividends
Total dividends
to 00
Retained earnings, December 31
$46,180,000
$5,375,000
..](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F290d1a95-15fe-4047-a614-a761d4287090%2F073234b6-9090-4cfc-b9af-345e9c4a9700%2F67tpolf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PR17-4B 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
%244,545,000
Net income
925,000
Total
$6,275,000
%245,470,000
Dividends:
Preferred stock dividends
%2 45,000
Common stock dividends
Total dividends
to 00
Retained earnings, December 31
$46,180,000
$5,375,000
..
![877
percentages, except for per-share amounts:
For the Years Ended December 31, 20Y2 and 20Y1
Stargel Inc.
Comparative Income Statement
20Y2
20Υ1
Sales....
$10,000,000
$9,400,000
Cost of goods sold...
Gross profit..
Selling expenses
5,350,000
$ 4,650,000
$ 2,000,000
4,950,000
$4,450,000
...
...
$1,880,000
Administrative expenses.
Total operating expenses..
Income from operations.
1,500,000
$ 3,500,000
$ 1,150,000
1,410,000
$3,290,000
$1,160,000
..
Other revenue
150,000
140,000
$1,300,000
$ 1,300,000
Other expense (interest)
170,000
$ 1,130,000
150,000
...
...
Income before income tax
$1,150,000
...
Income tax expense
230,000
225,000
..
Net income
$ 900,000
$ 925,000
..
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Assets
Current assets:
Cash ....
$ 500,000
$ 400,000
Marketable securities....
Accounts receivable (net)...
1,010,000
1,000,000
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...
2,350,000
2,300,000
Property, plant, and equipment (net)...
Total assets....
3,740,000
3,366,000
$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
%24
0.
1,500,000
$1,700,000
$2,600,000
1,500,000
$1,500,000
$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par .. ..
Common stock, $5 par.....
Retained earnings.....
Total stockholders' equity.....
$ 500,000
$ 500,000
500,000
500,000
6,180,000
5,375,000
$6,375,000
$7,180,000
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%2F290d1a95-15fe-4047-a614-a761d4287090%2F073234b6-9090-4cfc-b9af-345e9c4a9700%2Fx813jrk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:877
percentages, except for per-share amounts:
For the Years Ended December 31, 20Y2 and 20Y1
Stargel Inc.
Comparative Income Statement
20Y2
20Υ1
Sales....
$10,000,000
$9,400,000
Cost of goods sold...
Gross profit..
Selling expenses
5,350,000
$ 4,650,000
$ 2,000,000
4,950,000
$4,450,000
...
...
$1,880,000
Administrative expenses.
Total operating expenses..
Income from operations.
1,500,000
$ 3,500,000
$ 1,150,000
1,410,000
$3,290,000
$1,160,000
..
Other revenue
150,000
140,000
$1,300,000
$ 1,300,000
Other expense (interest)
170,000
$ 1,130,000
150,000
...
...
Income before income tax
$1,150,000
...
Income tax expense
230,000
225,000
..
Net income
$ 900,000
$ 925,000
..
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Assets
Current assets:
Cash ....
$ 500,000
$ 400,000
Marketable securities....
Accounts receivable (net)...
1,010,000
1,000,000
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...
2,350,000
2,300,000
Property, plant, and equipment (net)...
Total assets....
3,740,000
3,366,000
$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
%24
0.
1,500,000
$1,700,000
$2,600,000
1,500,000
$1,500,000
$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par .. ..
Common stock, $5 par.....
Retained earnings.....
Total stockholders' equity.....
$ 500,000
$ 500,000
500,000
500,000
6,180,000
5,375,000
$6,375,000
$7,180,000
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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