Homework Help is Here – Start Your Trial Now!
Business
Accounting
Ratios Compared with Industry Averages Because you own the common stock of Jacob Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Dec. 31, 2019 Dec. 31, 2018 $700,000 Quick assets Inventory and prepaid expenses Other assets $552,000 372,000 312,000 4,788,000 4,200,000 Total Assets $5,860,000 $5,064,000 Current liabilities $724,000 $564,000 10% Bonds payable 1,440,000 1,440,000 8% Preferred stock, $100 par value 480,000 480,000 Common stock, $10 par value 2,700,000 2,160,000 Retained earnings Total Liabilities and Stockholders' Equity 516,000 $5,860,000 420,000 $5,064,000 For 2019, net sales amount to $12,500,000, net income is $550,000, and preferred stock dividends paid are $50,000. Required Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 0 × % 2. Return on assets 0 x % 3. Return on common stockholders' equity 0 X % 4. Quick ratio 0 × 5. Current ratio 0 6. Debt-to-equity ratio 0.39

Ratios Compared with Industry Averages Because you own the common stock of Jacob Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Dec. 31, 2019 Dec. 31, 2018 $700,000 Quick assets Inventory and prepaid expenses Other assets $552,000 372,000 312,000 4,788,000 4,200,000 Total Assets $5,860,000 $5,064,000 Current liabilities $724,000 $564,000 10% Bonds payable 1,440,000 1,440,000 8% Preferred stock, $100 par value 480,000 480,000 Common stock, $10 par value 2,700,000 2,160,000 Retained earnings Total Liabilities and Stockholders' Equity 516,000 $5,860,000 420,000 $5,064,000 For 2019, net sales amount to $12,500,000, net income is $550,000, and preferred stock dividends paid are $50,000. Required Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 0 × % 2. Return on assets 0 x % 3. Return on common stockholders' equity 0 X % 4. Quick ratio 0 × 5. Current ratio 0 6. Debt-to-equity ratio 0.39

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 54CE
See similar textbooks
icon
Related questions
Question
Ratios Compared with Industry Averages Because you own the common stock of Jacob Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Dec. 31, 2019 Dec. 31, 2018 $700,000 Quick assets Inventory and prepaid expenses Other assets $552,000 372,000 312,000 4,788,000 4,200,000 Total Assets $5,860,000 $5,064,000 Current liabilities $724,000 $564,000 10% Bonds payable 1,440,000 1,440,000 8% Preferred stock, $100 par value 480,000 480,000 Common stock, $10 par value 2,700,000 2,160,000 Retained earnings Total Liabilities and Stockholders' Equity 516,000 $5,860,000 420,000 $5,064,000 For 2019, net sales amount to $12,500,000, net income is $550,000, and preferred stock dividends paid are $50,000. Required Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 0 × % 2. Return on assets 0 x % 3. Return on common stockholders' equity 0 X % 4. Quick ratio 0 × 5. Current ratio 0 6. Debt-to-equity ratio 0.39
Transcribed Image Text:Ratios Compared with Industry Averages Because you own the common stock of Jacob Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Dec. 31, 2019 Dec. 31, 2018 $700,000 Quick assets Inventory and prepaid expenses Other assets $552,000 372,000 312,000 4,788,000 4,200,000 Total Assets $5,860,000 $5,064,000 Current liabilities $724,000 $564,000 10% Bonds payable 1,440,000 1,440,000 8% Preferred stock, $100 par value 480,000 480,000 Common stock, $10 par value 2,700,000 2,160,000 Retained earnings Total Liabilities and Stockholders' Equity 516,000 $5,860,000 420,000 $5,064,000 For 2019, net sales amount to $12,500,000, net income is $550,000, and preferred stock dividends paid are $50,000. Required Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 0 × % 2. Return on assets 0 x % 3. Return on common stockholders' equity 0 X % 4. Quick ratio 0 × 5. Current ratio 0 6. Debt-to-equity ratio 0.39
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS