Measures of liquidity, solvency, and profitabilityThe comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2.Marshall Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y120Y2$3,704,000$ 600,000Retained earnings, January 1Net incomeDividends:On preferred stockOn common stockIncrease in retained earningsRetained earnings, December 31SalesCost of goods soldGross profitSelling expensesAdministrative expensesTotal operating expenses(10,000)(100,000)$ 490,000$4,194,000Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Y2Operating incomeOther revenue and expense:Other revenueOther expense (interest)Income before income tax expenseIncome tax expenseNet income20Y1$3,264,000$ 550,000(10,000)(100,000)$ 440,000$3,704,000$ 10,850,000(6,000,000)$ 4,850,000$ (2,170,000)(1,627,500)$(3,797,500)$ 1,052,50099,500(132,000)$ 1,020,000(420,000)$ 600,00020Y1$10,000,000(5,450,000)$ 4,550,000$ (2,000,000)(1,500,000)$ (3,500,000)$ 1,050,00020,000(120,000)$ 950,000(400,000)$ 550,000 Current assets:CashPrepaid expensesMarshall Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y1Marketable securitiesAccounts receivable (net)InventoriesCurrent liabilitiesLong-term liabilities:AssetsTotal current assetsLong-term investmentsProperty, plant, and equipment (net)Total assetsTotal long-term liabilitiesTotal liabilitiesLiabilitiesMortgage note payable, 6%Bonds payable, 4%Stockholders' Equity1. Working Capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days' sales in receivables6. Inventory turnover7. Number of days' sales in inventory8. Ratio of fixed assets to long-term liabilities9. Ratio of liabilities to stockholders' equity10. Times interest earned1. Asset tur20Y212. Return on total assets13. Return on stockholders' equity14. Return on common stockholders' equity15. Earnings per share on common stock $16. Price-earnings ratio17. Dividends per share of common stock18. Dividend yield$1,050,000301,000585,000420,000108,000$ 2,464,000800,0005,760,000$ 9,024,000$ 880,000$ 200,0003,000,000$3,200,000$ 4,080,000$ 250,000500,0004,194,000$ 4,944,000$ 9,024,000%%Preferred 4% stock, $5 parCommon stock, $5 parRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equityDetermine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent.%20Y1%$ 950,000420,000500,000380,00020,000$2,270,000800,0005,184,000$8,254,000$ 800,000$03,000,000$3,000,000$3,800,000$ 250,000500,0003,704,000$4,454,000$8,254,000

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Prepaid expenses Current assets: Cash Marketable securities Accounts receivable (net) Inventories Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Current liabilities Long-term liabilities: Total current assets Long-term investments Property, plant, and equipment (net) Total assets Assets Total long-term liabilities Total liabilities Mortgage note payable, 6% Bonds payable, 4% Preferred 4% stock, $5 par Common stock, $5 par Retained earnings 1. Working Capital 2. Current ratio 3. Quick ratio Liabilities Stockholders' Equity 20Y2 $1,050,000 301,000 585,000 420,000 108,000 $ 2,464,000 800,000 5,760,000 $ 9,024,000 $ 880,000 $ 200,000 3,000,000 $ 3,200,000 $ 4,080,000 $ 250,000 500,000 4,194,000 $ 4,944,000 $ 9,024,000 20Y1 $ 950,000 420,000 500,000 380,000 20,000 $2,270,000 800,000 5,184,000 $8,254,000 $ 800,000 $0 3,000,000 $3,000,000 $3,800,000 $ 250,000 500,000 3,704,000 $4,454,000 $8,254,000 Total stockholders' equity Total liabilities and stockholders' equity Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for p

Prepaid expenses Current assets: Cash Marketable securities Accounts receivable (net) Inventories Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Current liabilities Long-term liabilities: Total current assets Long-term investments Property, plant, and equipment (net) Total assets Assets Total long-term liabilities Total liabilities Mortgage note payable, 6% Bonds payable, 4% Preferred 4% stock, $5 par Common stock, $5 par Retained earnings 1. Working Capital 2. Current ratio 3. Quick ratio Liabilities Stockholders' Equity 20Y2 $1,050,000 301,000 585,000 420,000 108,000 $ 2,464,000 800,000 5,760,000 $ 9,024,000 $ 880,000 $ 200,000 3,000,000 $ 3,200,000 $ 4,080,000 $ 250,000 500,000 4,194,000 $ 4,944,000 $ 9,024,000 20Y1 $ 950,000 420,000 500,000 380,000 20,000 $2,270,000 800,000 5,184,000 $8,254,000 $ 800,000 $0 3,000,000 $3,000,000 $3,800,000 $ 250,000 500,000 3,704,000 $4,454,000 $8,254,000 Total stockholders' equity Total liabilities and stockholders' equity Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for p

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current portion of long-term debt Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: Total long term-debt Current portion December 31 Current Year C. $685,100 (198,700) $486,400 million December 31 Prior Year Long-term debt a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? $ $376,800 (185,000) $191,800 b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? million If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year? million
What's the total asset turnover ratio of this company? Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's equity Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income 1.41 2.33 O 4.45 1.11 8,000,000 (2,075,000) $600,000 900,000 1,500,000 75,000 $3,075,000 $5,925.000 $9,000,000 $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 $10,000,000 (3,000,000) (2,000,000) (250,000) (200,000) 4,550,000 (1,820,000) $2,730,000
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…
Problem 2 You are the controller for 21" Century Technologies. Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the company's balance sheet accounts. 21 Century Technologies Income Statement For the year ended December 31, 2009 Revenue: Net Sales Interest Revenue Gain on sales of marketable securities Costs and expenses: Costs of goods sold Operating expenses (including depreciation of $225 000) Interest expense Income tax expense Loss on sales of plant assets Net Income 4,800,000 60,000 $1,000 2,430,000 1,860,000 63,000 150,000 18,000 390,000 Additional information: 1. Accounts receivable increased by $90 000 2. Accrued interest receivable decreased by $3 000 3. Inventory decreased by $90 000 and accounts payable to suppliers of merchandise decreased by $24 000 4. Short-term prepayments of operating expenses increased by $9 000 and accrued liabilities for operating expenses decreased by $12…
Assets Line Item Description Amount Cash and short-term investments $42,572 Accounts receivable (net) 33,774 Inventory 37,691 Property, plant, and equipment 215,705 Total assets $329,742 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $68,960 Long-term liabilities 98,919 Common stock, $10 par 64,740 Retained earnings 97,123 Total liabilities and stockholders’ equity $329,742 Income Statement Line Item Description Amount Sales $91,805 Cost of goods sold (41,312) Gross profit $50,493 Operating expenses (28,002) Net income $22,491 Number of shares of common stock 6,474 Market price of common stock $28 What is the current ratio?
Condensed financial data of Granger Inc. follow. Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets GRANGER INC. Comparative Balance Sheets December 31 Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 2022 $80,800 87,800 112,500 28,400 138,000 285,000 (50,000) $682,500 $102,000 16,500 110,000 220,000 234,000 $682,500 2021 $48,400 38,000 102,850 26,000 109,000 242,500 (52,000) $514,750 $67,300 21,000 146,000 175,000 105,450 $514,750
K. Jackson Corporation Assets Cash Accounts receivable Inventory Net fixed assets Total assets Liabilities and owners' equity. Accounts payable ST Notes payable Long-term debt Owners' Equity Total liabilities and owner's equity Balance Sheet $250,000 450.000 500,000 2.100,000 $3,300.000 $100.000 450.000 1,050,000 1,700.000 $3,300,000 Income Statement Sales (all credit) Cost of goods sold Operating expense Interest expense Income taxes Net income $8,000,000 (4.000.000) (2,900,000) (150,000) (380,000) $570,000 Based on the information for K. Jackson Corporation, the current and acid-test ratios are, respectively. OA2.37 and 1.39. OB2 37 and 1.27 OC2 18 and 1.39 OD.2 18 and 1.27 OE None of the above.
The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. $1,800,000 Property, plant, and equipment (net) Liabilities: Current liabilities. Mortgage note payable, 10%, ten-year note issued two years ago Total liabilities Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity. Sales $1,440,000 566,000 $27,000 179,000 $225,000 1,125,000 $2,006,000 206,000 $1,350,000 $1,350,000 1,350,000 1,800,000 $4,500,000 $13,614,650
Calculate debt to equity, long-term debt to equity and specify as a percent to 2 decimal places
Accounting Item Prior year Current year Accounts payable 8,191.00 7,813.00 Accounts receivable 6,005.00 6,798.00 Accruals 1,036.00 1,622.00 Cash ??? ??? Common Stock 10,961.00 12,712.00 COGS 12,797.00 18,122.00 Current portion long-term debt 4,914.00 5,086.00 Depreciation expense 2,500 2,842.00 Interest expense 733 417 Inventories 4,175.00 4,807.00 Long-term debt 13,319.00 14,034.00 Net fixed assets 51,854.00 54,984.00 Notes payable 4,372.00 9,863.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,779.00 29,650.00 Sales 35,119 47,875.00 Taxes 2,084 2,775 What is the firm's net income in the current year? (5547.00?) What is the firm's dividend payment in the current year?
Solar Electric Inc. Balance Sheet 32 Marks ACB As at December 31, 2023 Account Title Debit Credit Assets Current Assets Cash 100,649 Accounts Receivable 35,860 Interest Rceivable 9,113 Prepaid Insurance 7,370 Short-Term Investment- Citi Inc 237,000 Short-Term Investment- Bonds 135,000 Inventory 90,640 Valuation Allowance for Fair Value Adjustment 50,700 Total Current Assets 666,332 Non-current Assets Investment in HSBC Inc. Common Shares 503,840 Long-Term Investment- Bond 145,000 Property, Plant & Equipment 280,000 Accumulated Depreciation 86,000 Total Non-Current Assets 842,840 Total Assets 1,509,172 Liabilities Current Liabilities Accounts Payable 212,400 Interest Payable 31,167 Unearned Revenue 21,000 Total Current Liabilities 264,567 Long-Term Liabilities Bonds Payable 340,000 Discount on Bonds Payable 15,741 Bank Loan 225,000 Total-Long Term Liabilities 549,259 Total Liabilities 813,826 Shareholders Equity Common Shares 362,000 Preferred Shares 80,000 Retained Earnings 348,385…
The account balances for KinderMorgan Account Title Balance Accounts Payable $8,990 Accounts Receivable, 1/1/22 4,455 Accumulated Depreciation 21,500 Building 65,000 Cash 10,300 45,000 Common Stock Delivery Truck Depreciation Expense Dividends 9,700 4.210 2,100 Marketable Equity Securities 3,400 Accounts Receivable, 12/31/22 5.250 Determine the Debt to Equity Ratio: 0.1114 0.1694 0.2101 0.1482 O 0.1783 are listed below. All balances are as of December 31, 2022, except where noted: Account Title Balance Inventory, 1/1/22 $2,040 Supplies 7,500 Salaries Expense 11,250 54,005 7,850 Retained Earnings, 1/1/22 23,480 Equipment 15,700 Prepaid Expenses 2,600 Cost of Goods Sold 16,350 Notes Payable (due 2024) 5.400 Inventory, 12/31/22 3,660 Net Revenue Rent Expense