The following (given in scrambled order) are accounts and balances from the accounting records of Alleg, Inc., as of December 31, 2012, after the books were closed for the year.
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Common stock, authorized 21,000 share
At $1 par value, issued 12,000 shares
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$12,000
|
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Additional paid-in capital
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38,000
|
|
Cash
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14,000
|
|
Marketable securities
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17,000
|
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Accounts receivable
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26,000
|
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Accounts Payable
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16,000
|
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Current maturities of long-term debt
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11,000
|
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Mortgages payable
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80,000
|
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Bonds payable
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65,000
|
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Inventory
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33,000
|
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Land and buildings
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57,000
|
|
Machinery and equipment
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120,000
|
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Goodwill
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13,000
|
|
Patents
|
9,000
|
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Other assets
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45,000
|
|
Deferred income taxes (long-term liability)
|
18,000
|
|
Retained earnings
|
33,000
|
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Accumulated depreciation
|
61,000
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Bonds and mortgages generally have 10-30 years until maturity. Marketable securities are short-term investments that can be converted to cash in a matter of minutes.
Required:
- Prepare a classified balance sheet with a proper heading on a spreadsheet. For assets, use the classifications of current assets, plant and equipment, intangibles, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.
- Compute the total asset turnover rate assuming that total revenues in 2012 were $682,500. Round to the nearest hundredth, e.g. 3.33.
- Assume that Alleg's primary competitor has an asset turnover of 2.12. What does this tell you about Alleg's asset management?