Selected comparative statement data for Molini Products Company are presented below. All balance sheet data are as of December 31.
|
|
2014
|
|
2013
|
| Net sales |
|
$701,420 |
|
$677,370 |
| Cost of goods sold |
|
478,950 |
|
396,040 |
| Interest expense |
|
6,740 |
|
4,780 |
| Net income |
|
43,290 |
|
31,280 |
| Accounts receivable |
|
117,850 |
|
108,150 |
| Inventory |
|
87,540 |
|
71,440 |
| Total assets |
|
584,810 |
|
535,120 |
| Total common stockholders' equity |
|
432,060 |
|
323,190 |
Compute the following ratios for 2014. (Round all answers to 1 decimal place, e.g. 1.6, or 1.6% .)
| Profit margin |
|
 |
% |
| Asset turnover |
|
|
times |
| Return on assets |
|
|
% |
| Return on common stockholders' equity |
|
|
% |
Rees Corporation experienced a fire on December 31, 2014, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.
|
|
December 31, 2014
|
|
December 31, 2013
|
| Cash |
|
$ 31,080 |
|
$ 12,230 |
| Receivables (net) |
|
75,000 |
|
124,000 |
| Inventory |
|
203,400 |
|
189,200 |
| Accounts payable |
|
47,970 |
|
93,800 |
| Notes payable |
|
26,150 |
|
61,970 |
| Common stock, $100 par |
|
411,000 |
|
411,000 |
| Retained earnings |
|
136,000 |
|
125,000 |
Additional information:
| 1. |
|
The inventory turnover is 3.5 times. |
| 2. |
|
The return on common stockholders' equity is 28%. The company had no additional paid-in capital. |
| 3. |
|
The receivables turnover is 8.2 times. |
| 4. |
|
The return on assets is 20%. |
| 5. |
|
Total assets at December 31, 2013, were $636,800. |
Compute the following for Rees Corporation.
| (a) |
|
Cost of goods sold for 2014 |
|
$ |
| (b) |
|
Net sales (credit) for 2014 |
|
$ |
| (c) |
|
Net income for 2014 |
|
$ |
| (d) |
|
Total assets at December 31, 2014 |
|
$ |