n from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period. Comparative Balance Sheets As of December 31 Assets: 20X3 20X2 20X1 Cash $ 210,000 $
n from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period. Comparative Balance Sheets As of December 31 Assets: 20X3 20X2 20X1 Cash $ 210,000 $
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
Problem 1PS
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Calculate: a). The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period.
| Comparative Balance Sheets | |||
| As of December 31 | |||
| Assets: | 20X3 | 20X2 | 20X1 |
| Cash | $ 210,000 | $ 780,000 | $ 1,530,000 |
| Accounts Receivable | 315,000 | 265,000 | 240,000 |
| Inventory | 436,000 | 405,000 | 330,000 |
| Prepaid Insurance | 15,000 | 18,000 | 21,000 |
| Total Current Assets | $ 976,000 | $ 1,468,000 | $ 2,121,000 |
| Land | 1,650,000 | 1,630,000 | 1,400,000 |
| Buildings | 2,300,000 | 1,760,000 | 1,400,000 |
| Less: Accumulated |
(560,000) | (490,000) | (440,000) |
| Net Buildings | 1,740,000 | 1,270,000 | 960,000 |
| Total Long-Term Assets | 3,390,000 | 2,900,000 | 2,360,000 |
| Total Assets | 4,366,000 | 4,368,000 | 4,481,000 |
| Liabilities & Stockholder's Equity | |||
| Accounts Payable | 215,000 | 134,000 | 185,000 |
| Salaries and Wages Payable | 63,000 | 49,000 | 40,000 |
| Dividends Payable | 69,702 | 36,818 | 0 |
| Notes Payable—Line of Credit | 356,000 | 205,000 | 98,000 |
| Total Current Liabilities | 703,702 | 424,818 | 323,000 |
| Notes Payable—Long-Term | 1,393,722 | 949,811 | 1,017,219 |
| Bonds Payable | 1,000,000 | 1,000,000 | 1,000,000 |
| Less: Discount on Bonds Payable | (41,583) | (48,317) | (54,603) |
| Net Bonds Payable | 958,417 | 951,683 | 945,397 |
| Total Long-term Liabilities | 2,352,139 | 1,901,494 | 1,962,617 |
| Total Liabilities | 3,055,841 | 2,326,312 | 2,285,617 |
| Contributed Capital | 1,500,000 | 1,500,000 | 1,500,000 |
| 1,449,159 | 1,080,688 | 730,383 | |
| (1,639,000) | (539,000) | (35,000) | |
| Total Stockholders’ Equity (SE) | 1,310,159 | 2,041,688 | 2,195,383 |
| Total Liabilities & Stockholdler's Equity | $4,366,000 | $4,368,000 | $4,481,000 |
Transcribed Image Text:Return on Equity
Dividend Payout
Return on Assets
Return on Sales
Asset Turnover
Current Ratio
Quick Ratio
Corporation A
Firm and Industry Financial Ratios
Debt/Assets
Accounts Receivable Days
Inventory Days
Accounts Payable Days
Summary: Cash Conversion Days
20X3
0.27
0.18
0.10
0.11
0.92
1.39
0.75
0.70
26.40
60.91
25.59
61.71
20X3/20X2
20X2 Industry
0.19
0.15
0.09
0.12
0.77
3.46
2.46
0.53
27.11
70.23
31.73
65.61
0.14
0.10
0.10
0.11
1.02
2.35
1.75
0.35
19.50
41.50
28.40
32.60
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