Homework Help is Here – Start Your Trial Now!
Business
Accounting
Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Required Calculate the following ratios for Year 4 and Year 3. Year 4 $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21,200 53,000 138,000 27,000 261,200 27,000 270,000 30,000 $588,200 $ 31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600 $588,200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228, 200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200

Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Required Calculate the following ratios for Year 4 and Year 3. Year 4 $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21,200 53,000 138,000 27,000 261,200 27,000 270,000 30,000 $588,200 $ 31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600 $588,200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228, 200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
Fix the incorrect ones please.
Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities. Notes payable Accounts payable Salaries payable Total current liabilities. Noncurrent liabilities Bonds payable Other Total noncurrent liabilities. Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Required Calculate the following ratios for Year 4 and Year 3. Year 4 $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21,200 53,000 138,000 27,000 261,200 27,000 270,000 30,000 $588, 200 $31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600. $588, 200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228, 200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200
Transcribed Image Text:Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities. Notes payable Accounts payable Salaries payable Total current liabilities. Noncurrent liabilities Bonds payable Other Total noncurrent liabilities. Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Required Calculate the following ratios for Year 4 and Year 3. Year 4 $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21,200 53,000 138,000 27,000 261,200 27,000 270,000 30,000 $588, 200 $31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600. $588, 200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228, 200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200
Required Calculate the following ratios for Year 4 and Year 3. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3, were $46,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $152,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) 1. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $528,200) (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $528,200). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $257,700). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $12.35, Year 4, $13.70). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) a b C d. e. t 9 I 11 k. 11. m n. 0 p. 9. r. S. < Working capital Current ratio Quick ratio Answer is complete but not entirely correct. Receivables turnover (beginning receivables at January 1, Year 3, were $46,000) Average days to collect accounts receivable Inventory turnover (beginning inventory at January 1, Year 3, was $152,000) Number of days to sell inventory Debt-to-assets ratio Debt-to-equity ratio Number of times interest was earned Plant assets to long-term debt Net margin Turnover of assets (average total assets in Year 3 is $528,200) Return on investment (average total assets in Year 3 is $528,200) Return on equity (average stockholders' equity in Year 3 is $257.700) Earnings per share (total shares outstanding is unchanged) Book value per share of common stock Price-earnings ratio (market price per share: Year 3, $12.35; Year 4, $13.70) Dividend yield on common stock S Year 4 74,600 1.40 0.52 7.14 51 1.23 297 times days times days 53 % 114.20 x 10.21 times 2.57 X 6.80 0.63 ✓ 4.26 % 8.94 % % 2.10 per share 27.46 Xper share 6.52 2.99 % S Year 3 79.700 1.54 0.47 7.25 50 0.93 392 times days times days 51% 104.97 X 12.63 times 2.46 X 13.21 % 0.62 8.25% 16.92 % 4.08 per share 25.77 Xper share 3.03 3.32 %
Transcribed Image Text:Required Calculate the following ratios for Year 4 and Year 3. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3, were $46,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $152,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) 1. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $528,200) (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $528,200). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $257,700). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $12.35, Year 4, $13.70). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) a b C d. e. t 9 I 11 k. 11. m n. 0 p. 9. r. S. < Working capital Current ratio Quick ratio Answer is complete but not entirely correct. Receivables turnover (beginning receivables at January 1, Year 3, were $46,000) Average days to collect accounts receivable Inventory turnover (beginning inventory at January 1, Year 3, was $152,000) Number of days to sell inventory Debt-to-assets ratio Debt-to-equity ratio Number of times interest was earned Plant assets to long-term debt Net margin Turnover of assets (average total assets in Year 3 is $528,200) Return on investment (average total assets in Year 3 is $528,200) Return on equity (average stockholders' equity in Year 3 is $257.700) Earnings per share (total shares outstanding is unchanged) Book value per share of common stock Price-earnings ratio (market price per share: Year 3, $12.35; Year 4, $13.70) Dividend yield on common stock S Year 4 74,600 1.40 0.52 7.14 51 1.23 297 times days times days 53 % 114.20 x 10.21 times 2.57 X 6.80 0.63 ✓ 4.26 % 8.94 % % 2.10 per share 27.46 Xper share 6.52 2.99 % S Year 3 79.700 1.54 0.47 7.25 50 0.93 392 times days times days 51% 104.97 X 12.63 times 2.46 X 13.21 % 0.62 8.25% 16.92 % 4.08 per share 25.77 Xper share 3.03 3.32 %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS