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In analyzing the financial statements which are given can you please compute the following ratios: 1.GROSS PROFIT RATE 2.RATE OF RETURN ON OWNER'S EQUITY 3. AVERAGE COLLECTION PERIOD 4. EARNINGS PER SHARE 5.BOOK VALUE PER SHARE

In analyzing the financial statements which are given can you please compute the following ratios: 1.GROSS PROFIT RATE 2.RATE OF RETURN ON OWNER'S EQUITY 3. AVERAGE COLLECTION PERIOD 4. EARNINGS PER SHARE 5.BOOK VALUE PER SHARE

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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In analyzing the financial statements which are given can you please compute the following ratios: 1.GROSS PROFIT RATE 2.RATE OF RETURN ON OWNER'S EQUITY 3. AVERAGE COLLECTION PERIOD 4. EARNINGS PER SHARE 5.BOOK VALUE PER SHARE
ASSETS Current Assets: Cash Marketable Securities Accounts Receivable, net Finished Goods Work in Process Raw Materials. Factory Supplies Prepaid Expenses Total Current Assets Investments Property, Plant and Equipment, net of depreciation Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable Income Taxes Payable Accrued Expenses Total Current Liabilities Noncurrent Liabilities: 00.000,8 Mortgage Loans Payable Total Liabilities Stockholders' Equity 12% Preferred Stock, Par 10.00 Common Stock, Par 10.00 Premium on Preferred Stock Premium on Common Stock Total Paid-in Capital Retained Earnings Mayo Manufacturing Corp. Balance Sheet Total Stockholders' Equity Total Liabilities and Stockholders' Equity Additional Information: Market Value per Share of Common Stock Net Credit Sales Net Credit Purchases Dividends on Preferred Stock Dividends on Common Stock December 31, 2019 figures: Accounts Receivable. 12,000.00 80,000.00 50,000.00 25,000.00 60,000.00 160,000.00 60,000.00 The marketable securities qualify as cash equivalents. Total Current Assets Total Current Liabilities. Common Stock Operating Expenses Total Assets Stockholders' Equity December 31 2021 15,500.00 5,000.00 25,000.00 24,000.00 16,000.00 12,000.00 1,200.00 1,800.00 100,500.00 25,000.00 75,000.00 200,500.00 15,000.00 19,250.00 5,000.00 39,250.00 60,000.00 99,250.00 20,000.00 30,000.00 5,000.00 10,000.00 65,000.00 36,250.00 65 200,000.00 40,000.00 2020 2021 2,400.00 19,100.00 12,200.00 16,000.00 15,000.00 26,000.00 13,500.00 8,000.00 2,000.00 2,300.00 95,000.00 20,000.00 60,000.00 175,000.00 22,000.00 14,000.00 9,000.00 45,000.00 58,000.00 22,000.00 101,250.00 80,000.00 200,500.00 175,000.00 50,000.00 95,000.00 20,000.00 25,000.00 5,000.00 8,000.00 60 180,000.00 30,000.00 2020 2,400.00 15,200.00
Transcribed Image Text:ASSETS Current Assets: Cash Marketable Securities Accounts Receivable, net Finished Goods Work in Process Raw Materials. Factory Supplies Prepaid Expenses Total Current Assets Investments Property, Plant and Equipment, net of depreciation Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable Income Taxes Payable Accrued Expenses Total Current Liabilities Noncurrent Liabilities: 00.000,8 Mortgage Loans Payable Total Liabilities Stockholders' Equity 12% Preferred Stock, Par 10.00 Common Stock, Par 10.00 Premium on Preferred Stock Premium on Common Stock Total Paid-in Capital Retained Earnings Mayo Manufacturing Corp. Balance Sheet Total Stockholders' Equity Total Liabilities and Stockholders' Equity Additional Information: Market Value per Share of Common Stock Net Credit Sales Net Credit Purchases Dividends on Preferred Stock Dividends on Common Stock December 31, 2019 figures: Accounts Receivable. 12,000.00 80,000.00 50,000.00 25,000.00 60,000.00 160,000.00 60,000.00 The marketable securities qualify as cash equivalents. Total Current Assets Total Current Liabilities. Common Stock Operating Expenses Total Assets Stockholders' Equity December 31 2021 15,500.00 5,000.00 25,000.00 24,000.00 16,000.00 12,000.00 1,200.00 1,800.00 100,500.00 25,000.00 75,000.00 200,500.00 15,000.00 19,250.00 5,000.00 39,250.00 60,000.00 99,250.00 20,000.00 30,000.00 5,000.00 10,000.00 65,000.00 36,250.00 65 200,000.00 40,000.00 2020 2021 2,400.00 19,100.00 12,200.00 16,000.00 15,000.00 26,000.00 13,500.00 8,000.00 2,000.00 2,300.00 95,000.00 20,000.00 60,000.00 175,000.00 22,000.00 14,000.00 9,000.00 45,000.00 58,000.00 22,000.00 101,250.00 80,000.00 200,500.00 175,000.00 50,000.00 95,000.00 20,000.00 25,000.00 5,000.00 8,000.00 60 180,000.00 30,000.00 2020 2,400.00 15,200.00
Comprehensive Problem: The Mayo Manufacturing Corporation has given you the following statements for analysis: Sales00.000.00 Less: Cost of Goods Sold, per schedule Gross Profit on Sales Schedule of Cost of Goods Sold: Direct Materials Cost: Less: Operating Expenses (including depreciation, 6,000.00) Income Before Income Tax Less: Provision for Income Tax Net Income Inventory, January 1 Purchases Inventory, December 31 Direct Materials Cost Mayo Manufacturing Corp. Income Statements 2020 and 2021 Manufacturing Costs Work in Progress, January 100.00 Work in Progress, December 31 Cost of Goods Manufactured as Finished Goods, January 1s.100 Finished Goods, December 31005 Cost of Goods Sold Direct Labor Factory Overhead (including depreciation 5,000 for 2021 and 3,000 for 2000)00.000,00 00.000,081 00.000,08 300,000.00 nobsbarqsh to ten drom 120,000.00 180,000.00 2021 YTIUD 2020 21322A 200,000.00 100,000.00 100,000.00 125,000.00 60,000.00 55,000.00 001 40,000.00 19,250.00 14,000.00 35,750.00 26,000.00 00.019 bb012 bon 8,000.00 13,040.00 ubnicki 54,000.00 47,560.00 (12,000.00) (8,000.00) 50,000.00 52,600.00 40,500.00 32,000.00 12 30,000.000 24,000.00 120,500.00 108,600.00 13,500.00 6,900.00 (16,000.00) 118,000.00 yup3 26,000.00 vslup3 amablon (24,000.00) 120,000.00 (13,500.00) 102,000.00 24,000.00 (26,000.00) 100,000.00
Transcribed Image Text:Comprehensive Problem: The Mayo Manufacturing Corporation has given you the following statements for analysis: Sales00.000.00 Less: Cost of Goods Sold, per schedule Gross Profit on Sales Schedule of Cost of Goods Sold: Direct Materials Cost: Less: Operating Expenses (including depreciation, 6,000.00) Income Before Income Tax Less: Provision for Income Tax Net Income Inventory, January 1 Purchases Inventory, December 31 Direct Materials Cost Mayo Manufacturing Corp. Income Statements 2020 and 2021 Manufacturing Costs Work in Progress, January 100.00 Work in Progress, December 31 Cost of Goods Manufactured as Finished Goods, January 1s.100 Finished Goods, December 31005 Cost of Goods Sold Direct Labor Factory Overhead (including depreciation 5,000 for 2021 and 3,000 for 2000)00.000,00 00.000,081 00.000,08 300,000.00 nobsbarqsh to ten drom 120,000.00 180,000.00 2021 YTIUD 2020 21322A 200,000.00 100,000.00 100,000.00 125,000.00 60,000.00 55,000.00 001 40,000.00 19,250.00 14,000.00 35,750.00 26,000.00 00.019 bb012 bon 8,000.00 13,040.00 ubnicki 54,000.00 47,560.00 (12,000.00) (8,000.00) 50,000.00 52,600.00 40,500.00 32,000.00 12 30,000.000 24,000.00 120,500.00 108,600.00 13,500.00 6,900.00 (16,000.00) 118,000.00 yup3 26,000.00 vslup3 amablon (24,000.00) 120,000.00 (13,500.00) 102,000.00 24,000.00 (26,000.00) 100,000.00
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