The following data is given: December 31, 2021 2020 Cash $59,000 $49,500 Accounts receivable (net) 103,000 59,000 Inventories 93,000 102,000
The following data is given: December 31, 2021 2020 Cash $59,000 $49,500 Accounts receivable (net) 103,000 59,000 Inventories 93,000 102,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The following data is given:
December 31,
2021
2020
Cash
$59,000
$49,500
Accounts receivable (net)
103,000
59,000
Inventories
93,000
102,000
Plant assets (net)
381,500
320,000
Accounts payable
55,500
40,500
Salaries and wages payable
9,500
5,000
Bonds payable
71,500
68,000
8% Preferred stock, $40 par
100,000
100,000
Common stock, $10 par
120,000
90,000
Paid-in capital in excess of par
80,000
65,000
Retained earnings
200,000
162,000
Net credit sales
940,000
Cost of goods sold
750,000
Net income
82,000
Compute the following ratios: (Round answers to 2 decimal places e.g. 15.25.)
(a)
Acid-test ratio at 12/31/21
:1
(b)
Accounts receivable turnover in 2021
times
(c)
Inventory turnover in 2021
times
(d)
Profit margin on sales in 2021
(e)
Return on common stockholders' equity in 2021
%
(f)
Book value per share of common stock at 12/31/21
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