Mulder Corporation's comparative balance sheets are presented below. MULDER CORPORATION Balance Sheets December 31 Cash Accounts receivable Inventory Land Buildings Accumulated depreciation - buildings Total 2015 $ 10,300 16,200 11,000 32,000 74,000 (15,000) $128.500 2014 $ 3,900 24,400 8,000 28,000 74,000 (12,000) $126.300

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mulder Corporation's comparative balance sheets are presented below.
MULDER CORPORATION
Balance Sheets
December 31
Cash
Accounts receivable
Inventory
Land
Buildings
Accumulated depreciation - buildings
Total
Accounts payable
Common stock ($5 par)
Retained earnings
Total
2015
$ 10,300
16,200
11,000
32,000
74,000
(15,000)
$128.500
$ 17,370
70,000
41,130
$128.500
2014
$ 3,900
24,400
8,000
28,000
74,000
(12,000)
$126.300
$ 31,100
70,000
25,200
$126.300
Mulder's 2015 income statement included net sales of $100,000, cost of goods sold
of $60,000, and net income of $20,000.
(d) Inventory turnover and days in inventory.
(e) Profit margin.
(f) Asset turnover.
(g) Return on assets.
(h) Return on common stockholders' equity.
(i) Earnings per share.
(j) Payout ratio.
(k) Debt to assets ratio.
ii) Comment on the liquidity position of the company
Instructions
i) Compute the following ratios for 2015.
(a) Current ratio.
(b) Acid-test ratio.
(c) Accounts receivable turnover and average collection period.
Transcribed Image Text:Mulder Corporation's comparative balance sheets are presented below. MULDER CORPORATION Balance Sheets December 31 Cash Accounts receivable Inventory Land Buildings Accumulated depreciation - buildings Total Accounts payable Common stock ($5 par) Retained earnings Total 2015 $ 10,300 16,200 11,000 32,000 74,000 (15,000) $128.500 $ 17,370 70,000 41,130 $128.500 2014 $ 3,900 24,400 8,000 28,000 74,000 (12,000) $126.300 $ 31,100 70,000 25,200 $126.300 Mulder's 2015 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $20,000. (d) Inventory turnover and days in inventory. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders' equity. (i) Earnings per share. (j) Payout ratio. (k) Debt to assets ratio. ii) Comment on the liquidity position of the company Instructions i) Compute the following ratios for 2015. (a) Current ratio. (b) Acid-test ratio. (c) Accounts receivable turnover and average collection period.
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