Following is the balance sheet of Thornton Company for Year 3:THORNTON COMPANYBalance sheetAssetsCash$ 15,050Marketable securitiesAccounts receivable8,380InventoryProperty and equipmentAccumulated depreciation13,34011,050165,500(12,300)Total assets$201,020Liabilities and Stockholders' EquityAccounts payableCurrent notes payableMortgage payableBonds payable$ 8,7503,2004,10021,840113,30049,830$201,020Common stockRetained earningsTotal liabilities and stockholders' equityThe average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300.RequiredCompute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.)a. Current ratio4.00b. Earnings per share2$17.00 per sharec. Quick (acid-test) ratio3.08d. Return on investment%e. Return on equityf. Debt to equity ratio< Prev6 of 6NextMacBook Air80888F2F3DIIF4FSF6F8F9#$&*34EY一FGH* CODI

The ratio analysis is used by the management to analyze and evaluate the performance of the business…

Following is the balance sheet of Thornton Company for Year 3: THORNTON COMPANY Balance sheet Assets $ 15,050 8,380 13,340 11,050 165,500 (12,300) Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets $201,020 Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable Common stock Retained earnings 8,750 3,200 4,100 21,840 113,300 49,830 Total liabilities and stockholders' equity $201,020 The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.) a. Current ratio 4.00 b. Earnings per share 17.00 per share c. Quick (acid-test) ratio 3.08 d. Return on investment e. Return on equity % f. Debt to equity ratio

Following is the balance sheet of Thornton Company for Year 3: THORNTON COMPANY Balance sheet Assets $ 15,050 8,380 13,340 11,050 165,500 (12,300) Cash Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets $201,020 Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable Common stock Retained earnings 8,750 3,200 4,100 21,840 113,300 49,830 Total liabilities and stockholders' equity $201,020 The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.) a. Current ratio 4.00 b. Earnings per share 17.00 per share c. Quick (acid-test) ratio 3.08 d. Return on investment e. Return on equity % f. Debt to equity ratio

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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Presented below is selected financial data for Teague Industries for the current year: Current assets: Current liabilities Cash and cash equivalents $3503 Accounts payable $5385 Short-term investments 1555 Other current liabilities 2892 Receivables, net 1811 Total current liabilities 8277 Merchandise inventories 6205 Noncurrent liabilities 5196 Other current assets 1975 Shareholders' Equity 6250 Total current assets 15,049 Total liabilities and shareholders' equity $19,723 Noncurrent assets 4674 Total assets $19,723 Revenues $50,826 Costs and Expenses 45,963 Operating Income 4,863 Other income/expense (including interest expense of $60) (36) Income before income tax 4827 Income tax expense (1449) Net income $3378 Previous Years' Financial Data Total Assets $17,020 Shareholders' Equity 4000 The financial leverage for Teague Industries is ________. (Round your answer to two decimal places, X.XX.)
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Assets Cash $ 15,050 Marketable securities Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable 8,260 13,400 11,100 165,500 (12,000) $201,310 $ 8,180 3,880 4,350 Common stock Retained earnings 21,480 113,900 49,520 $ 201,310 Total liabilities and stockholders' equity The average number of common stock shares outstanding during Year 3 was 880 shares. Net income for the year was $14,400. Required Compute each of the following: Note: Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45. a. Current ratio per share b. Earnings per share c. Quick (acid-test) ratio d. Return on investment + % % e. Return on equity f. Debt to equity ratio
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