Required - Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculations. Round computations to two decimal points.
a. Net margin
b. Return on investment
c. Return on equity
d. Earnings per share
e. Price-earnings ratio (market prices at the end of 2014 and 2015 were $5.94 and $4.77, respectively)
f. Book value per share of common stock
g. Times interest earned
h. Working capital
i. Current ratio
j. Quick (acid-test) ratio
k. Accounts receivable turnover
l. Inventory turnover
m. Debt to equity ratio
n. Debt to assets ratio
|
Revenues
|
|
|
|
Net sales
|
$210,000
|
$175,000
|
|
Other revenues
|
4,000
|
5,000
|
|
Total revenues
|
214,000
|
180,000
|
|
Expenses
|
|
|
|
Cost of goods sold
|
126,000
|
103,000
|
|
Selling expenses
|
21,000
|
19,000
|
|
General and administrative expenses
|
11,000
|
10,000
|
|
Interest expense
|
3,000
|
3,000
|
|
Income tax expense
|
21,000
|
18,000
|
|
Total expenses
|
182,000
|
153,000
|
|
Earnings from continuing operations before extraordinary items
|
32,000
|
27,000
|
|
Extraordinary gain (net of $3,000 tax)
|
4,000
|
0
|
|
Net income
|
$ 36,000
|
$ 27,000
|
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash
|
$ 4,000
|
$ 8,000
|
|
Marketable securities
|
1,000
|
1,000
|
|
Accounts receivable
|
35,000
|
32,000
|
|
Inventories
|
100,000
|
96,000
|
|
Prepaid expenses
|
3,000
|
2,000
|
|
Total current assets
|
143,000
|
139,000
|
|
Plant and equipment (net)
|
105,000
|
105,000
|
|
Intangibles
|
20,000
|
0
|
|
Total assets
|
$268,000
|
$244,000
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Accounts payable
|
$ 40,000
|
$ 54,000
|
|
Other
|
17,000
|
15,000
|
|
Total current liabilities
|
57,000
|
69,000
|
|
Bonds payable
|
66,000
|
67,000
|
|
Total liabilities
|
123,000
|
136,000
|
|
Stockholders' equity
|
|
|
|
Common stock (50,000 shares)
|
115,000
|
115,000
|
|
Retained earnings
|
30,000
|
(7,000)
|
|
Total stockholders' equity
|
145,000
|
108,000
|
|
Total liabilities and stockholders' equity
|
$268,000
|
$244,000
|
Edmonds, Thomas, Christopher Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay. Surveys of Accounting, 4th Edition. McGraw-Hill Learning Solutions, 01/2014. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.
Attachment:- Assignment.rar