Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1. $5,375,000 $4,545,000 Net income. $ 900,000 $ 925,000 Dividends: On preferred stock On common stock. Increase in retained earnings.. (45,000) (45,000) (50,000) $ 805,000 (50,000) $ 830,000 $5,375,000 Retained earnings, December 31 $6,180,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $ 10,000,000 (5,350,000) $ 4,650,000 $ (2,000,000) (1,500,000 Š (3,500000) $ 1,150.000 Sales $ 9,400,000 (4,950,000) $ 4,450,000 $(1,880,000) Cost of goods sold... Grass profit. Selling expenses Administrative expenses. Total operating expenses Operating income. Other revenue and expensa Other revenue. Other expense (interest).. Income before income tax expense. (1,410,000 $(3.290,000) $ 1,160,000 150.000 140,000 (170,000) (150,000) $ 1,150,000 (225,000) $ 925,000 $ 1,130,000 (230000) Income tax expense. Net income... 900,000 Stargel Inc. Comparative Balance Sheet Dacember 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: $ 500,000 $ 400,000 1,000,000 Cash. Marketable securities 1,010,000 Accounts receivable (net).. 740,000 510,000 Inventories.. 1,190,000 950,000 Prepaid expenses. 250.000 $3,690,000 229.000 $3,089,000 Total current assets. Long-term investmants. Property, plant, and equipment (net) Total assets .. 2,300,000 3,366,000 2,350,000 3,740,000 $9,780,000 $8,755,000 Liabilities Current liabilities S 900.000 S 880,000 Long-term liabilities: Mortgage note payable, 10% . Bonds payable, 10% Total long-term liabilities Total liabilities .. $ 200,000 1,500,000 $1,700,000 $2.600,000 1,500,000 $1,500,000 $2,380,000 Stockholders Equity Proforred $0.90 stock, $10 par. Common stock, $5 par. Retained earnings.. $ 500,000 500,000 $ 500,000 500,000 6,180,000 5,375,000 $6,375,000 $8,755,000 Total stockholders' equity. $7.180,000 $9,780,000 Total liabilities and stockholders' equity.
Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1. $5,375,000 $4,545,000 Net income. $ 900,000 $ 925,000 Dividends: On preferred stock On common stock. Increase in retained earnings.. (45,000) (45,000) (50,000) $ 805,000 (50,000) $ 830,000 $5,375,000 Retained earnings, December 31 $6,180,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $ 10,000,000 (5,350,000) $ 4,650,000 $ (2,000,000) (1,500,000 Š (3,500000) $ 1,150.000 Sales $ 9,400,000 (4,950,000) $ 4,450,000 $(1,880,000) Cost of goods sold... Grass profit. Selling expenses Administrative expenses. Total operating expenses Operating income. Other revenue and expensa Other revenue. Other expense (interest).. Income before income tax expense. (1,410,000 $(3.290,000) $ 1,160,000 150.000 140,000 (170,000) (150,000) $ 1,150,000 (225,000) $ 925,000 $ 1,130,000 (230000) Income tax expense. Net income... 900,000 Stargel Inc. Comparative Balance Sheet Dacember 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: $ 500,000 $ 400,000 1,000,000 Cash. Marketable securities 1,010,000 Accounts receivable (net).. 740,000 510,000 Inventories.. 1,190,000 950,000 Prepaid expenses. 250.000 $3,690,000 229.000 $3,089,000 Total current assets. Long-term investmants. Property, plant, and equipment (net) Total assets .. 2,300,000 3,366,000 2,350,000 3,740,000 $9,780,000 $8,755,000 Liabilities Current liabilities S 900.000 S 880,000 Long-term liabilities: Mortgage note payable, 10% . Bonds payable, 10% Total long-term liabilities Total liabilities .. $ 200,000 1,500,000 $1,700,000 $2.600,000 1,500,000 $1,500,000 $2,380,000 Stockholders Equity Proforred $0.90 stock, $10 par. Common stock, $5 par. Retained earnings.. $ 500,000 500,000 $ 500,000 500,000 6,180,000 5,375,000 $6,375,000 $8,755,000 Total stockholders' equity. $7.180,000 $9,780,000 Total liabilities and stockholders' equity.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 15E
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Question
Practice Pack
The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2.
Instructions
Determine 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.
1. Working capital
2. Current ratio
3. Quick ratio
4.
5. Number of days' sales in receivables
6. Inventor)’ turnover
7. Number of days' sales in inventory
![Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Retained earnings, January 1.
$5,375,000
$4,545,000
Net income.
$ 900,000
$ 925,000
Dividends:
On preferred stock
On common stock.
Increase in retained earnings..
(45,000)
(45,000)
(50,000)
$ 805,000
(50,000)
$ 830,000
$5,375,000
Retained earnings, December 31
$6,180,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4f36a50-09b4-4620-9bb5-fd5119885572%2F91743699-9126-4b0b-84b5-c4d30be2d06f%2Fyzoupxn_processed.png&w=3840&q=75)
Transcribed Image Text:Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Υ2
20Υ1
Retained earnings, January 1.
$5,375,000
$4,545,000
Net income.
$ 900,000
$ 925,000
Dividends:
On preferred stock
On common stock.
Increase in retained earnings..
(45,000)
(45,000)
(50,000)
$ 805,000
(50,000)
$ 830,000
$5,375,000
Retained earnings, December 31
$6,180,000
![Stargel Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
$ 10,000,000
(5,350,000)
$ 4,650,000
$ (2,000,000)
(1,500,000
Š (3,500000)
$ 1,150.000
Sales
$ 9,400,000
(4,950,000)
$ 4,450,000
$(1,880,000)
Cost of goods sold...
Grass profit.
Selling expenses
Administrative expenses.
Total operating expenses
Operating income.
Other revenue and expensa
Other revenue.
Other expense (interest)..
Income before income tax expense.
(1,410,000
$(3.290,000)
$ 1,160,000
150.000
140,000
(170,000)
(150,000)
$ 1,150,000
(225,000)
$ 925,000
$ 1,130,000
(230000)
Income tax expense.
Net income...
900,000
Stargel Inc.
Comparative Balance Sheet
Dacember 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
Current assets:
$ 500,000
$ 400,000
1,000,000
Cash.
Marketable securities
1,010,000
Accounts receivable (net)..
740,000
510,000
Inventories..
1,190,000
950,000
Prepaid expenses.
250.000
$3,690,000
229.000
$3,089,000
Total current assets.
Long-term investmants.
Property, plant, and equipment (net)
Total assets ..
2,300,000
3,366,000
2,350,000
3,740,000
$9,780,000
$8,755,000
Liabilities
Current liabilities
S 900.000
S 880,000
Long-term liabilities:
Mortgage note payable, 10% .
Bonds payable, 10%
Total long-term liabilities
Total liabilities ..
$ 200,000
1,500,000
$1,700,000
$2.600,000
1,500,000
$1,500,000
$2,380,000
Stockholders Equity
Proforred $0.90 stock, $10 par.
Common stock, $5 par.
Retained earnings..
$ 500,000
500,000
$ 500,000
500,000
6,180,000
5,375,000
$6,375,000
$8,755,000
Total stockholders' equity.
$7.180,000
$9,780,000
Total liabilities and stockholders' equity.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4f36a50-09b4-4620-9bb5-fd5119885572%2F91743699-9126-4b0b-84b5-c4d30be2d06f%2F1wgwqm_processed.png&w=3840&q=75)
Transcribed Image Text:Stargel Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
$ 10,000,000
(5,350,000)
$ 4,650,000
$ (2,000,000)
(1,500,000
Š (3,500000)
$ 1,150.000
Sales
$ 9,400,000
(4,950,000)
$ 4,450,000
$(1,880,000)
Cost of goods sold...
Grass profit.
Selling expenses
Administrative expenses.
Total operating expenses
Operating income.
Other revenue and expensa
Other revenue.
Other expense (interest)..
Income before income tax expense.
(1,410,000
$(3.290,000)
$ 1,160,000
150.000
140,000
(170,000)
(150,000)
$ 1,150,000
(225,000)
$ 925,000
$ 1,130,000
(230000)
Income tax expense.
Net income...
900,000
Stargel Inc.
Comparative Balance Sheet
Dacember 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
Current assets:
$ 500,000
$ 400,000
1,000,000
Cash.
Marketable securities
1,010,000
Accounts receivable (net)..
740,000
510,000
Inventories..
1,190,000
950,000
Prepaid expenses.
250.000
$3,690,000
229.000
$3,089,000
Total current assets.
Long-term investmants.
Property, plant, and equipment (net)
Total assets ..
2,300,000
3,366,000
2,350,000
3,740,000
$9,780,000
$8,755,000
Liabilities
Current liabilities
S 900.000
S 880,000
Long-term liabilities:
Mortgage note payable, 10% .
Bonds payable, 10%
Total long-term liabilities
Total liabilities ..
$ 200,000
1,500,000
$1,700,000
$2.600,000
1,500,000
$1,500,000
$2,380,000
Stockholders Equity
Proforred $0.90 stock, $10 par.
Common stock, $5 par.
Retained earnings..
$ 500,000
500,000
$ 500,000
500,000
6,180,000
5,375,000
$6,375,000
$8,755,000
Total stockholders' equity.
$7.180,000
$9,780,000
Total liabilities and stockholders' equity.
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