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

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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 
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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