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 Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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