The financial statements of Kingbird Company appear below: KINGBIRD COMPANY Comparative Balance Sheet December 31, Assets 2020 2019 Cash $23,000 $47,000 Short-term investments 24,500 66,000 Accounts receivable (net) 40,300 31,400 Inventory 61,600 70,200 Property, plant and equipment (net) 260,000 310,000 Total assets $409,400 $524,600 Liabilities and stockholders' equity Accounts payable $15,300 $31,300 Short-term notes payable 40,000 93,000 Bonds payable 81,000 162,000 Common stock 150,000 150,000 Retained earnings 123,100 88,300 Total liabilities and stockholders' equity $409,400 $524,600

The financial statements of Kingbird Company appear below: KINGBIRD COMPANY Comparative Balance Sheet December 31, Assets 2020 2019 Cash $23,000 $47,000 Short-term investments 24,500 66,000 Accounts receivable (net) 40,300 31,400 Inventory 61,600 70,200 Property, plant and equipment (net) 260,000 310,000 Total assets $409,400 $524,600 Liabilities and stockholders' equity Accounts payable $15,300 $31,300 Short-term notes payable 40,000 93,000 Bonds payable 81,000 162,000 Common stock 150,000 150,000 Retained earnings 123,100 88,300 Total liabilities and stockholders' equity $409,400 $524,600

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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Question

Solution gives as: 1- Current ratio ? :1 2- Return on common stockholders equity ? % 3- Price Earnings Ratio ? Times 4- Accounts receivable turnover ? Times 5- Times interest earned ? Times 6- Profit Margin ? % 7- Days in inventory ? Days 8- Payout Ratio ? % 9- Return on Assets ? %

The financial statements of Kingbird Company appear below:
KINGBIRD COMPANY
Comparative Balance Sheet
December 31,
Assets
2020
2019
Cash
$23,000
$47,000
Short-term investments
24,500
66,000
Accounts receivable (net)
40,300
31,400
Inventory
61,600
70,200
Property, plant and equipment (net)
260,000
310,000
Total assets
$409,400 $524,600
Liabilities and stockholders' equity
Accounts payable
$15,300
$31,300
Short-term notes payable
40,000
93,000
Bonds payable
81,000
162,000
Common stock
150,000
150,000
Retained earnings
123,100
88,300
Total liabilities and stockholders' equity
$409,400
$524,600

KINGBIRD COMPANY
Income Statement
For the Year Ended December 31, 2020
$40,800
18,700
Net sales
$410,000
Cost of goods sold
266,500
Gross profit
143,500
Expenses
Operating expenses
Interest expense
Total expenses
59,500
Income before income taxes
84,000
W
Income tax expense
25,200
Net income
$58,800
Additional information:
a.
Cash dividends of $24,000 were declared and paid in 2020.
b.
Weighted-average number of shares of common stock outstanding during 2020 was 29,400 shares.
C.
Market value of common stock on December 31, 2020, was $22 per share.
Using the financial statements and additional information, compute the following ratios for Kingbird Company for 2020. (Use 365 days
for calculation. Round answers to 1 decimal place, e.g. 52.7.)

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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