Calculate: a). The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period.Comparative Balance Sheets As of December 31 Assets:20X3 20X2 20X1 Cash $ 210,000 $ 780,000 $ 1,530,000Accounts Receivable 315,000265,000 240,000 Inventory 436,000405,000 330,000 Prepaid Insurance 15,00018,000 21,000 Total Current Assets $ 976,000 $ 1,468,000 $ 2,121,000Land 1,650,000 1,630,000 1,400,000 Buildings 2,300,000 1,760,000 1,400,000 Less: Accumulated Depreciation (560,000) (490,000) (440,000) Net Buildings 1,740,000 1,270,000 960,000 Total Long-Term Assets 3,390,000 2,900,000 2,360,000 Total Assets 4,366,000 4,368,000 4,481,000 Liabilities & Stockholder's EquityAccounts Payable 215,000 134,000 185,000 Salaries and Wages Payable 63,000 49,000 40,000 Dividends Payable 69,702 36,818 0 Notes Payable—Line of Credit 356,000 205,000 98,000 Total Current Liabilities 703,702 424,818 323,000 Notes Payable—Long-Term 1,393,722 949,811 1,017,219 Bonds Payable 1,000,000 1,000,000 1,000,000 Less: Discount on Bonds Payable (41,583) (48,317) (54,603) Net Bonds Payable 958,417 951,683 945,397 Total Long-term Liabilities 2,352,139 1,901,494 1,962,617 Total Liabilities 3,055,841 2,326,312 2,285,617 Contributed Capital 1,500,000 1,500,000 1,500,000 Retained Earnings 1,449,159 1,080,688 730,383 Treasury Stock (1,639,000) (539,000) (35,000) Total Stockholders’ Equity (SE) 1,310,159 2,041,688 2,195,383 Total Liabilities & Stockholdler's Equity $4,366,000 $4,368,000 $4,481,000 Firm and Industry Financial Ratios 20X3 20X2 20X3/20X2 Industry Return on Equity 0.27 0.19 0.14 Dividend Payout 0.18 0.15 0.10 Return on Assets 0.10 0.09 0.10 Return on Sales 0.11 0.12 0.11 Asset Turnover 0.92 0.77 1.02 Current Ratio 1.39 3.46 2.35 Quick Ratio 0.75 2.46 1.75 Debt/Assets 0.70 0.53 0.35 Accounts Receivable Days 26.40 27.11 19.50 Inventory Days 60.91 70.23 41.50 Accounts Payable Days 25.59 31.73 28.40 Summary: Cash Conversion Days 61.71 65.61 32.60

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College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1SEB

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Calculate: a). The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period.

Comparative Balance Sheets
As of December 31

Assets:	20X3	20X2	20X1
Cash	$ 210,000	$ 780,000	$ 1,530,000
Accounts Receivable	315,000	265,000	240,000
Inventory	436,000	405,000	330,000
Prepaid Insurance	15,000	18,000	21,000
Total Current Assets	$ 976,000	$ 1,468,000	$ 2,121,000
Land	1,650,000	1,630,000	1,400,000
Buildings	2,300,000	1,760,000	1,400,000
Less: Accumulated Depreciation	(560,000)	(490,000)	(440,000)
Net Buildings	1,740,000	1,270,000	960,000
Total Long-Term Assets	3,390,000	2,900,000	2,360,000
Total Assets	4,366,000	4,368,000	4,481,000
Liabilities & Stockholder's Equity
Accounts Payable	215,000	134,000	185,000
Salaries and Wages Payable	63,000	49,000	40,000
Dividends Payable	69,702	36,818	0
Notes Payable—Line of Credit	356,000	205,000	98,000
Total Current Liabilities	703,702	424,818	323,000
Notes Payable—Long-Term	1,393,722	949,811	1,017,219
Bonds Payable	1,000,000	1,000,000	1,000,000
Less: Discount on Bonds Payable	(41,583)	(48,317)	(54,603)
Net Bonds Payable	958,417	951,683	945,397
Total Long-term Liabilities	2,352,139	1,901,494	1,962,617
Total Liabilities	3,055,841	2,326,312	2,285,617
Contributed Capital	1,500,000	1,500,000	1,500,000
Retained Earnings	1,449,159	1,080,688	730,383
Treasury Stock	(1,639,000)	(539,000)	(35,000)
Total Stockholders’ Equity (SE)	1,310,159	2,041,688	2,195,383
Total Liabilities & Stockholdler's Equity	$4,366,000	$4,368,000	$4,481,000

Firm and Industry Financial Ratios
	20X3	20X2	20X3/20X2 Industry
Return on Equity	0.27	0.19	0.14
Dividend Payout	0.18	0.15	0.10
Return on Assets	0.10	0.09	0.10
Return on Sales	0.11	0.12	0.11
Asset Turnover	0.92	0.77	1.02
Current Ratio	1.39	3.46	2.35
Quick Ratio	0.75	2.46	1.75
Debt/Assets	0.70	0.53	0.35
Accounts Receivable Days	26.40	27.11	19.50
Inventory Days	60.91	70.23	41.50
Accounts Payable Days	25.59	31.73	28.40
Summary: Cash Conversion Days	61.71	65.61	32.60

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