Lisa Inc.'s balance sheet appears below: Lisa Inc. Statement of Financial Position December 31 (in thousands) Year 2 Year 1 Cash $ 30 $ 25 Marketable securities. Accounts receivable (net) Inventories... Prepaid expenses Total current assets Land.. Building (net) Equipment (net). Total long-term assets. Total assets 20 15 45 30 30 20 140 125 60 15 170 155 80 90 95 330 $500 100 315 $455 Accounts payable Accrued interest Short-term notes payable. $ 47 15 23 85 $ 28 15 12 55 10 Total current liabilities... Long-term notes payable Bonds payable. Total long-term liabilities Total liabilities 10 15 25 110 100 15 25 80 100 Preferred stock $(100 par value, 5%) Common Stock S(10 par value) Additional paid-in capital--common stock. Retained earnings... Total stockholders equity Total liabilities & equity. 150 150 75 75 65 390 $500 50 375 $455 The company's sales for the year were $300 thousand, its cost of goods sold was $220 thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends for the year were $5 thousand. Prepare the following financial ratios to analyze the Balance Sheet of Lisa Inc. 1. Acid test ratio. 2. Accounts receivable turnover 3. Inventory turnover
Lisa Inc.'s balance sheet appears below: Lisa Inc. Statement of Financial Position December 31 (in thousands) Year 2 Year 1 Cash $ 30 $ 25 Marketable securities. Accounts receivable (net) Inventories... Prepaid expenses Total current assets Land.. Building (net) Equipment (net). Total long-term assets. Total assets 20 15 45 30 30 20 140 125 60 15 170 155 80 90 95 330 $500 100 315 $455 Accounts payable Accrued interest Short-term notes payable. $ 47 15 23 85 $ 28 15 12 55 10 Total current liabilities... Long-term notes payable Bonds payable. Total long-term liabilities Total liabilities 10 15 25 110 100 15 25 80 100 Preferred stock $(100 par value, 5%) Common Stock S(10 par value) Additional paid-in capital--common stock. Retained earnings... Total stockholders equity Total liabilities & equity. 150 150 75 75 65 390 $500 50 375 $455 The company's sales for the year were $300 thousand, its cost of goods sold was $220 thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends for the year were $5 thousand. Prepare the following financial ratios to analyze the Balance Sheet of Lisa Inc. 1. Acid test ratio. 2. Accounts receivable turnover 3. Inventory turnover
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lisa Inc.'s balance sheet appears below:
Lisa Inc.
Statement of Financial Position
December 31
(in thousands)
Year 2
Year 1
Cash
$ 30
$ 25
Marketable securities
20
15
Accounts receivable (net)
45
30
Inventories....
Prepaid expenses
Total current assets
Land
Building (net)
Equipment (net)..
Total long-term assets
Total assets
50
20
140
125
60
15
170
155
80
90
95
330
$500
100
315
$455
$ 47
15
23
85
$ 28
Accounts payable
Accrued interest
Short-term notes payable
15
12
55
Total current liabilities.
Long-term notes payable
Bonds payable
Total long-term liabilities
Total liabilities
10
10
15
25
110
15
25
80
Preferred stock $(100 par value, 5%)
Common Stock S(10 par value)
Additional paid-in capital--common stock
Retained earnings....
Total stockholders' equity
Total liabilities & equity.
100
100
150
150
75
75
65
390
$500
50
375
$455
The company's sales for the year were $300 thousand, its cost of goods sold was $220
thousand, and its net income was $35 thousand. All sales were on credit. Preferred dividends
for the year were $5 thousand.
Prepare the following financial ratios to analyze the Balance Sheet of Lisa Inc.
1. Acid test ratio.
2. Accounts receivable turnover
3. Inventory turnover
4. Return on Equity
5. Return on Assets
6. Debt to equity ratio
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