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Required Calculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $292,000). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 a. Working capital b. Current ratio c. Quick ratio Receivables turnover (beginning receivables at January 1, Year 3, were $47,000) $ 122,200 1.80 $ 120,000 1.99 times times |days d. e. Average days to collect accounts receivable days f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000) times times g. Number of days to sell inventory days days h. Debt-to-assets ratio i. Debt-to-equity ratio j. Number of times interest was earned k. Plant assets to long-term debt 1. Net margin m. Turnover of assets (average total assets in Year 3 is $540,000) % % times times % % n. Return on investment (average total assets in Year 3 is $540,000) % % o. Return on equity (average stockholders' equity in Year 3 is $292,000) % % p. Earnings per share (total shares outstanding is unchanged) per share per share q. Book value per share of common stock r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50) per share per share S. Dividend yield on common stock % %

Required Calculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $292,000). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 a. Working capital b. Current ratio c. Quick ratio Receivables turnover (beginning receivables at January 1, Year 3, were $47,000) $ 122,200 1.80 $ 120,000 1.99 times times |days d. e. Average days to collect accounts receivable days f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000) times times g. Number of days to sell inventory days days h. Debt-to-assets ratio i. Debt-to-equity ratio j. Number of times interest was earned k. Plant assets to long-term debt 1. Net margin m. Turnover of assets (average total assets in Year 3 is $540,000) % % times times % % n. Return on investment (average total assets in Year 3 is $540,000) % % o. Return on equity (average stockholders' equity in Year 3 is $292,000) % % p. Earnings per share (total shares outstanding is unchanged) per share per share q. Book value per share of common stock r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50) per share per share S. Dividend yield on common stock % %

FINANCIAL ACCOUNTING
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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Required Calculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $292,000). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 а. Working capital $ 122.200 $ 120,000 b. Current ratio 1.80 1.99 C. Quick ratio d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000) times times Average days to collect accounts receivable days days е. f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000) times times g. Number of days to sell inventory days days h. Debt-to-assets ratio % % i. j. Plant assets to long-term debt Debt-to-equity ratio Number of times interest was earned times times k. 1. Net margin % % m. Turnover of assets (average total assets in Year 3 is $540,000) n. Return on investment (average total assets in Year 3 is $540,000) % % O. Return on equity (average stockholders' equity in Year 3 is $292,000) % % p. Earnings per share (total shares outstanding is unchanged) per share per share q. Book value per share of common stock per share per share r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50) Dividend yield on common stock % % S.
Transcribed Image Text:Required Calculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $292,000). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 а. Working capital $ 122.200 $ 120,000 b. Current ratio 1.80 1.99 C. Quick ratio d. Receivables turnover (beginning receivables at January 1, Year 3, were $47,000) times times Average days to collect accounts receivable days days е. f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000) times times g. Number of days to sell inventory days days h. Debt-to-assets ratio % % i. j. Plant assets to long-term debt Debt-to-equity ratio Number of times interest was earned times times k. 1. Net margin % % m. Turnover of assets (average total assets in Year 3 is $540,000) n. Return on investment (average total assets in Year 3 is $540,000) % % O. Return on equity (average stockholders' equity in Year 3 is $292,000) % % p. Earnings per share (total shares outstanding is unchanged) per share per share q. Book value per share of common stock per share per share r. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50) Dividend yield on common stock % % S.
Financial statements for Allendale Company follow: ALLENDALE COMPANY Balance Sheets As of December 31 Year 4 Year 3 Assets Current assets Cash $ 40,000 $ 36,000 6,000 46,000 143,000 10,000 Marketable securities 20,000 54,000 135,000 25,000 Accounts receivable (net) Inventories Prepaid items Total current assets 274,000 241,000 20,000 255,000 24,000 Investments Plant (net) 27,000 270,000 29,000 Land Total assets $600,000 $540,000 Liabilities and Stockholders' Equity Liabilities Current liabilities $ 17,000 Notes payable Accounts payable Salaries payable 113,800 21,000 $ 6,000 100,000 15,000 Total current liabilities 151,800 121,000 Noncurrent liabilities Bonds payable 100,000 32,000 132,000 100,000 27,000 Other Total noncurrent liabilities 127,000 Total liabilities 283,800 248,000 Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity 80,000 80,000 80,000 80,000 156,200 132,000 292,000 316,200 Total liabilities and stockholders' equity $600,000 $540,000 ALLENDALE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Year 3 Revenues Sales (net) $230,000 8,000 $210,000 Other revenues 5,000 Total revenues 238,000 215,000 Expenses Cost of goods sold Selling, general, and administrative Interest expense 120,000 55,000 8,000 103,000 50,000 7,200 Income tax expense 23,000 22,000 Total expenses 206,000 182,200 32,000 132,000 3,200 4,600 32,800 107,000 3,200 4,600 Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 $156,200 $132,000
Transcribed Image Text:Financial statements for Allendale Company follow: ALLENDALE COMPANY Balance Sheets As of December 31 Year 4 Year 3 Assets Current assets Cash $ 40,000 $ 36,000 6,000 46,000 143,000 10,000 Marketable securities 20,000 54,000 135,000 25,000 Accounts receivable (net) Inventories Prepaid items Total current assets 274,000 241,000 20,000 255,000 24,000 Investments Plant (net) 27,000 270,000 29,000 Land Total assets $600,000 $540,000 Liabilities and Stockholders' Equity Liabilities Current liabilities $ 17,000 Notes payable Accounts payable Salaries payable 113,800 21,000 $ 6,000 100,000 15,000 Total current liabilities 151,800 121,000 Noncurrent liabilities Bonds payable 100,000 32,000 132,000 100,000 27,000 Other Total noncurrent liabilities 127,000 Total liabilities 283,800 248,000 Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity 80,000 80,000 80,000 80,000 156,200 132,000 292,000 316,200 Total liabilities and stockholders' equity $600,000 $540,000 ALLENDALE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Year 3 Revenues Sales (net) $230,000 8,000 $210,000 Other revenues 5,000 Total revenues 238,000 215,000 Expenses Cost of goods sold Selling, general, and administrative Interest expense 120,000 55,000 8,000 103,000 50,000 7,200 Income tax expense 23,000 22,000 Total expenses 206,000 182,200 32,000 132,000 3,200 4,600 32,800 107,000 3,200 4,600 Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 $156,200 $132,000
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