Refer to the preceding financial statements and other information. Calculate the following ratios for 2011. А. Current Ratio В. Quick Ratio С. C. Inventory Turnover in Days D. Times interest earned ratio. E. Debt ratio. F. Debt to equity ratio. G. Return on Sales Return on Total Assets Н. Return on Common Stockholders' Equity Earnings per share I. J.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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4.
Student ID #:
12. Condensed financial statements for Robeson Company appear below:
Comparative Balance Sheets
2010
$ 201,000
438,000
673,000
Cash
$ 128,000
Accounts receivable
Inventories
472,000
797,000
Prepaid expenses
Plant and equipment (net)
Total assets
000'18
2,655,000
$4,133,000
2,428.000
$3,832,000
Accounts payable
Long-term bonds payable
Preferred stock, 10%, S100 par
Common stock, no par
Retained earnings
Total liabilities and equities
$ 198,000
1,000,000
450,000
1,800,000
685,000
$4,133,000
$ 280,600
1,000,000
450,000
1,800,000
301.400
$3,832,000
Income Statement
December 31, 2011
Sales, net
Less cost of goods sold
Gross margin
$5,400,000
3,240,000
2,160,000
1,010,000
1,150,000
Less operating expenses
Net operating income
Interest expense
Net income before taxes
1,070,000
000
$749,000
Less income taxes
Net income
There were 72,000 shares of common stock outstanding throughout the 2011. Dividends on common stock
amounted to $320,400 and dividends on preferred stock amounted to $45,000. The market value of a share of
common stock was $54 at the end of 2011. The income tax rate is 30%.
Refer to the preceding financial statements and other information. Calculate the following ratios for
2011.
A.
Current Ratio
B. Quick Ratio
Inventory Turnover in Days
C.
D. Times interest earned ratio.
E.
Debt ratio.
Debt to equity ratio.
G. Return on Sales
F.
H.
Return on Common Stockholders' Equity
Return on Total Assets
J.
Earnings per share
22
Transcribed Image Text:4. Student ID #: 12. Condensed financial statements for Robeson Company appear below: Comparative Balance Sheets 2010 $ 201,000 438,000 673,000 Cash $ 128,000 Accounts receivable Inventories 472,000 797,000 Prepaid expenses Plant and equipment (net) Total assets 000'18 2,655,000 $4,133,000 2,428.000 $3,832,000 Accounts payable Long-term bonds payable Preferred stock, 10%, S100 par Common stock, no par Retained earnings Total liabilities and equities $ 198,000 1,000,000 450,000 1,800,000 685,000 $4,133,000 $ 280,600 1,000,000 450,000 1,800,000 301.400 $3,832,000 Income Statement December 31, 2011 Sales, net Less cost of goods sold Gross margin $5,400,000 3,240,000 2,160,000 1,010,000 1,150,000 Less operating expenses Net operating income Interest expense Net income before taxes 1,070,000 000 $749,000 Less income taxes Net income There were 72,000 shares of common stock outstanding throughout the 2011. Dividends on common stock amounted to $320,400 and dividends on preferred stock amounted to $45,000. The market value of a share of common stock was $54 at the end of 2011. The income tax rate is 30%. Refer to the preceding financial statements and other information. Calculate the following ratios for 2011. A. Current Ratio B. Quick Ratio Inventory Turnover in Days C. D. Times interest earned ratio. E. Debt ratio. Debt to equity ratio. G. Return on Sales F. H. Return on Common Stockholders' Equity Return on Total Assets J. Earnings per share 22
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