uploaded pictures for problem 17-4B.I am trying to figure out the 7.Number of days' sales in inventory8. Ratio of Fixed Assets to long-term Liabilities9. Ratio of Liabilities to Stockholders Equity PR 17-4B Measures of liquidity, solvency and profitabilityThe comparative financial statements of Stargel Inc are as follows. The market price ofStargel common stock was $119.70 on December 31, 20Y2.Stargel Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Retained earnings, January 1$5,375,000$4,545,000Net income925,000Total...$6,275,000$5,470,000Dividends:Preferred stock dividends$ 45,000Common stock dividendsTotal dividendsRetained earnings, December 31$6,180,000$5,375,000 percentages, except for per-share amounts:877Stargel Inc.Comparative Income Statementar the Years Ended December 31, 20Y2 and 20Y120Υ220Υ1Sales$10,000,000$9,400,000Cost of goods sold..Gross profit.5,350,000$ 4,650,000$ 2,000,0004,950,000$4,450,000Selling expensesAdministrative expenses.$1,880,0001,500,0001,410,000Total operating expensesIncome from operationsOther revenue...$ 3,500,000$ 1,150,000$3,290,000$1,160,000150,000140,000$ 1,300,000$1,300,000Other expense (interest)Income before income tax170,000150,000$1,150,000$ 1,130,000Income tax expense.230,000225,000Net income$ 9.00,000$ 925,000Stargel Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y120Υ220Υ1AssetsCurrent assets:Cash$ 500,000$ 400,000Marketable securities.1,010,0001,000,000Accounts receivable (net).740,000510,000Inventories1,190,000950,000Prepaid expensesTotal current assets..250,000229,000$3,690,000$3,089,000Long-term investments..Property, plant, and equipment (net)2,350,0002,300,0003,740,0003,366,000Total assets$9,780,000$8,755,000LiabilitiesCurrent liabilities.$ 900,000$ 880,000Long-term liabilities:Mortgage note payable, 10%.Bonds payable, 10%..Total long-term liabilitiesTotal liabilities$ 200,000$011,500,0001,500,000$1,700,000$1,500,000$2,600,000$2,380,000Stockholders' EquityPreferred $0.90 stock, $10 par...Common stock, $5 par.Retained earnings..$ 500,000$ 500,000500,000500,0006,180,0005,375,000Total stockholders' equity$7,180,000$6,375,000Total liabilities and stockholders' equity.$9,780,000$8,755,000InstructionsDetermine the following measures for 20Y2, rounding to one decimal place including

The ratio analysis helps to analyse the financial statements of the business. Part 7. For 20Y2 Average inventory = (1,190,000+950,000) / 2 = $1,070,000 Number of days sales in inventory = (Average inventory / cost of goods sold) * 365 = (1,070,000 / 5,350,000) * 365 = 73 days Part 8. For 20Y2 Fixed assets = $3,740,000 Long term liabilities = $1,700,000 Ratio of fixed assets to long term liabilities = 3,740,000 / 1,700,000 = 2.2 times Part 9. For year 20Y2 Liabilities = $2,600,000 Stockholders equity = $7,180,000 Ratio of liabilities to stockholders equity = 2,600,000 / 7,180,000 = 0. 36 times

Answered: Number of days' sales in inventory 8.…

Business

Accounting

Number of days' sales in inventory 8. Ratio of Fixed Assets to long-term Liabilities 9. Ratio of Liabilities to Stockholders Equity

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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I uploaded pictures for problem 17-4B. I am trying to figure out the 12. Return on total assets
Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7