This text is the information needed to complete. The picture is the needed helpFinancial statements for Allendale Company follow: ALLENDALE COMPANYBalance SheetsAs of December 31 Year 4 Year 3Assets Current assets Cash$40,000 $36,000 Marketable securities 20,000 6,000 Accounts receivable (net) 54,000 46,000 Inventories 135,000 143,000 Prepaid items 25,000 10,000 Total current assets 274,000 241,000 Investments 27,000 20,000 Plant (net) 270,000 255,000 Land 29,000 24,000 Total assets$600,000 $540,000 Liabilities and Stockholders’ Equity Liabilities Current liabilities Notes payable$17,000 $6,000 Accounts payable 113,800 100,000 Salaries payable 21,000 15,000 Total current liabilities 151,800 121,000 Noncurrent liabilities Bonds payable 100,000 100,000 Other 32,000 27,000 Total noncurrent liabilities 132,000 127,000 Total liabilities 283,800 248,000 Stockholders’ equity Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000shares authorized and issued) 80,000 80,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 80,000 80,000 Retained earnings 156,200 132,000 Total stockholders’ equity 316,200 292,000 Total liabilities and stockholders’ equity$600,000 $540,000 ALLENDALE COMPANYStatements of Income and Retained EarningsFor the Years Ended December 31 Year 4 Year 3Revenues Sales (net)$230,000 $210,000 Other revenues 8,000 5,000 Total revenues 238,000 215,000 Expenses Cost of goods sold 120,000 103,000 Selling, general, and administrative 55,000 50,000 Interest expense 8,000 7,200 Income tax expense 23,000 22,000 Total expenses 206,000 182,200 Net earnings (net income) 32,000 32,800 Retained earnings, January 1 132,000 107,000 Less: Preferred stock dividends 3,200 3,200 Common stock dividends 4,600 4,600 Retained earnings, December 31$156,200 $132,000 RequiredCalculate the following ratios for Year 4 and Year 3.Working capital.Current ratio. (Round your answers to 2 decimal places.)Quick ratio. (Round your answers to 2 decimal places.)Receivables turnover (beginning receivables at January 1, Year 3, were $47,000). (Round your answers to 2 decimal places.)Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)Inventory turnover (beginning inventory at January 1, Year 3, was $140,000). (Round your answers to 2 decimal places.)Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)Debt-to-assets ratio. (Round your answers to the nearest whole percent.)Debt-to-equity ratio. (Round your answers to 2 decimal places.)Number of times interest was earned. (Round your answers to 2 decimal places.)Plant assets to long-term debt. (Round your answers to 2 decimal places.)Net margin. (Round your answers to 2 decimal places.)Turnover of assets (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.)Return on investment (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.)Return on equity (average stockholders' equity in Year 3 is $292,000). (Round your answers to 2 decimal places.)Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.)Book value per share of common stock. (Round your answers to 2 decimal places.)Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.)Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4Year 3Working capitala.b.Current ratioc.Quick ratiod.Receivables turnover (beginning receivsbles at January 1, Year 3, were $47,000)timestimesAverage days to collect accounts receivabledaysdayse.f.Inventory turnover (beginning inventory at January 1. Year 3, wss $140,000)timestimes9-Number of days to sell inventorydaysdaysh.Debt-to-assets ratio%i.Debt-to-equity ratioj.Number of times interest was earnedtimestimesk.Plant assets to long-term debt1.Net marginm.Turnover of assets (average totsl assets in Year 3 is $540,000)n..Return on investment (average total assets in Year 3 is $540,000)o.Return on equity (aversge stockholders' equity in Year 3 is $292,000)%p.Earnings per share (total shares outstanding is unchanged)per shareper shareg.Book value per share of common stockper shareper sharer.Price-earnings ratio (market price per share: Year 3, $11.75: Year 4, $12.50)s.Dividend yield on common stock

Financial Ratio helps users to understand and Analysis the Financial Statement and made decision.…

Answered: Working capital. Current ratio. (Round…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

This text is the information needed to complete. The picture is the needed help

Financial statements for Allendale Company follow:

ALLENDALE COMPANY
Balance Sheets As of December 31
	Year 4		Year 3
Assets
Current assets
Cash	$	40,000		$	36,000
Marketable securities		20,000			6,000
Accounts receivable (net)		54,000			46,000
Inventories		135,000			143,000
Prepaid items		25,000			10,000
Total current assets		274,000			241,000
Investments		27,000			20,000
Plant (net)		270,000			255,000
Land		29,000			24,000
Total assets	$	600,000		$	540,000
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Notes payable	$	17,000		$	6,000
Accounts payable		113,800			100,000
Salaries payable		21,000			15,000
Total current liabilities		151,800			121,000
Noncurrent liabilities
Bonds payable		100,000			100,000
Other		32,000			27,000
Total noncurrent liabilities		132,000			127,000
Total liabilities		283,800			248,000
Stockholders’ equity
Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued)		80,000			80,000
Common stock (no par; 50,000 shares authorized; 10,000 shares issued)		80,000			80,000
Retained earnings		156,200			132,000
Total stockholders’ equity		316,200			292,000
Total liabilities and stockholders’ equity	$	600,000		$	540,000

ALLENDALE COMPANY
Statements of Income and Retained Earnings For the Years Ended December 31
	Year 4		Year 3
Revenues
Sales (net)	$	230,000		$	210,000
Other revenues		8,000			5,000
Total revenues		238,000			215,000
Expenses
Cost of goods sold		120,000			103,000
Selling, general, and administrative		55,000			50,000
Interest expense		8,000			7,200
Income tax expense		23,000			22,000
Total expenses		206,000			182,200
Net earnings (net income)		32,000			32,800
Retained earnings, January 1		132,000			107,000
Less: Preferred stock dividends		3,200			3,200
Common stock dividends		4,600			4,600
Retained earnings, December 31	$	156,200		$	132,000

Required
Calculate the following ratios for Year 4 and Year 3.

Working capital.
Current ratio. (Round your answers to 2 decimal places.)
Quick ratio. (Round your answers to 2 decimal places.)
Receivables turnover (beginning receivables at January 1, Year 3, were $47,000). (Round your answers to 2 decimal places.)
Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)
Inventory turnover (beginning inventory at January 1, Year 3, was $140,000). (Round your answers to 2 decimal places.)
Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)
Debt-to-assets ratio. (Round your answers to the nearest whole percent.)
Debt-to-equity ratio. (Round your answers to 2 decimal places.)
Number of times interest was earned. (Round your answers to 2 decimal places.)
Plant assets to long-term debt. (Round your answers to 2 decimal places.)
Net margin. (Round your answers to 2 decimal places.)
Turnover of assets (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.)
Return on investment (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.)
Return on equity (average stockholders' equity in Year 3 is $292,000). (Round your answers to 2 decimal places.)
Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.)
Book value per share of common stock. (Round your answers to 2 decimal places.)
Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.)
Dividend yield on common stock. (Round your answers to 2 decimal places.)

Year 4
Year 3
Working capital
a.
b.
Current ratio
c.
Quick ratio
d.
Receivables turnover (beginning receivsbles at January 1, Year 3, were $47,000)
times
times
Average days to collect accounts receivable
days
days
e.
f.
Inventory turnover (beginning inventory at January 1. Year 3, wss $140,000)
times
times
9-
Number of days to sell inventory
days
days
h.
Debt-to-assets ratio
%
i.
Debt-to-equity ratio
j.
Number of times interest was earned
times
times
k.
Plant assets to long-term debt
1.
Net margin
m.
Turnover of assets (average totsl assets in Year 3 is $540,000)
n..
Return on investment (average total assets in Year 3 is $540,000)
o.
Return on equity (aversge stockholders' equity in Year 3 is $292,000)
%
p.
Earnings per share (total shares outstanding is unchanged)
per share
per share
g.
Book value per share of common stock
per share
per share
r.
Price-earnings ratio (market price per share: Year 3, $11.75: Year 4, $12.50)
s.
Dividend yield on common stock

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.