Financial statements for Rundle Company follow. RUNDLE COMPANY Balance Sheets As of December 31 Year 4 Year 3 Assets Current assets Cash $ 22,000 $ 18,000 Marketable securities 21,200 7,200 Accounts receivable (net) 53,000 45,000 Inventories 138,000 146,000 Prepaid items 27,000 12,000 Total current assets 261,200 228,200 Investments 27,000 20,000 Plant (net) 270,000 255,000 Land 30,000 25,000 Total assets $ 588,200 $ 528,200 Liabilities and Stockholders’ Equity Liabilities Current liabilities Notes payable $ 31,800 $ 13,500 Accounts payable 133,800 120,000 Salaries payable 21,000 15,000 Total current liabilities 186,600 148,500 Noncurrent liabilities Bonds payable 100,000 100,000 Other 27,000 22,000 Total noncurrent liabilities 127,000 122,000 Total liabilities 313,600 270,500 Stockholders’ equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) 70,000 70,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 70,000 70,000 Retained earnings 134,600 117,700 Total stockholders’ equity 274,600 257,700 Total liabilities and stockholders’ equity $ 588,200 $ 528,200 k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) l. 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.)
Financial statements for Rundle Company follow. RUNDLE COMPANY Balance Sheets As of December 31 Year 4 Year 3 Assets Current assets Cash $ 22,000 $ 18,000 Marketable securities 21,200 7,200 Accounts receivable (net) 53,000 45,000 Inventories 138,000 146,000 Prepaid items 27,000 12,000 Total current assets 261,200 228,200 Investments 27,000 20,000 Plant (net) 270,000 255,000 Land 30,000 25,000 Total assets $ 588,200 $ 528,200 Liabilities and Stockholders’ Equity Liabilities Current liabilities Notes payable $ 31,800 $ 13,500 Accounts payable 133,800 120,000 Salaries payable 21,000 15,000 Total current liabilities 186,600 148,500 Noncurrent liabilities Bonds payable 100,000 100,000 Other 27,000 22,000 Total noncurrent liabilities 127,000 122,000 Total liabilities 313,600 270,500 Stockholders’ equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) 70,000 70,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 70,000 70,000 Retained earnings 134,600 117,700 Total stockholders’ equity 274,600 257,700 Total liabilities and stockholders’ equity $ 588,200 $ 528,200 k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) l. 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.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 22BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
Related questions
Question
Financial statements for Rundle Company follow.
RUNDLE COMPANY | |||||||
Balance Sheets As of December 31 |
|||||||
Year 4 | Year 3 | ||||||
Assets | |||||||
Current assets | |||||||
Cash | $ | 22,000 | $ | 18,000 | |||
Marketable securities | 21,200 | 7,200 | |||||
53,000 | 45,000 | ||||||
Inventories | 138,000 | 146,000 | |||||
Prepaid items | 27,000 | 12,000 | |||||
Total current assets | 261,200 | 228,200 | |||||
Investments | 27,000 | 20,000 | |||||
Plant (net) | 270,000 | 255,000 | |||||
Land | 30,000 | 25,000 | |||||
Total assets | $ | 588,200 | $ | 528,200 | |||
Liabilities and |
|||||||
Liabilities | |||||||
Current liabilities | |||||||
Notes payable | $ | 31,800 | $ | 13,500 | |||
Accounts payable | 133,800 | 120,000 | |||||
Salaries payable | 21,000 | 15,000 | |||||
Total current liabilities | 186,600 | 148,500 | |||||
Noncurrent liabilities | |||||||
Bonds payable | 100,000 | 100,000 | |||||
Other | 27,000 | 22,000 | |||||
Total noncurrent liabilities | 127,000 | 122,000 | |||||
Total liabilities | 313,600 | 270,500 | |||||
Stockholders’ equity | |||||||
shares authorized and issued) |
70,000 | 70,000 | |||||
Common stock (no par; 50,000 shares authorized; 10,000 shares issued) | 70,000 | 70,000 | |||||
134,600 | 117,700 | ||||||
Total stockholders’ equity | 274,600 | 257,700 | |||||
Total liabilities and stockholders’ equity | $ | 588,200 | $ | 528,200 | |||
k. Plant assets to long-term debt. (Round your answers to 2 decimal places.)
l. 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.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
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
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning