111. A company’s balance sheet and income statement accounts follow: At December 31 2014 2013 2012 Assets Cash $30,872 $36,086 $37,974 ...







111. A company’s balance sheet and income statement accounts follow:




































































































At December 31




2014




2013




2012




Assets













Cash




$30,872




$36,086




$37,974




Accounts receivable, net




89,476




63,151




50,632




Merchandise inventory




112,499




83,450




54,467




Prepaid expenses




9,942




9,473




4,219




Plant assets, net




291,143




268,126




244,108




Total assets




$533,932




$460,286




$391,400




Liabilities and Equity













Accounts payable




$130,290




$76,233




$50,632




Long-term notes payable secured by mortgages on plant assets




98,372




103,748




107,769




Common stock, $10 par value




142,500




132,500




102,500




Retained earnings




182,770




147,805




130,499




Total liabilities and equity




$533,932




$460,286




$391,400




























































































For Year Ended December 31




2014




2013




Sales







$694,112







$547,740




Cost of goods sold




$423,408







$356,031







Other operating expenses




215,175







138,578







Interest expense




11,800







12,598







Income taxes




9,023







8,216







Total costs and expenses







659,406







515,423




Net income







$34,706







$32,317




Earnings per share







$2.14







$1.99












What is the company’s times interest earned ratio for 2013?



A. 3.57%
B. 4.22%
C. 3.69%
D. 2.75%
E. 2.57%





112. A company’s balance sheet and income statement accounts follow:




































































































At December 31




2014




2013




2012




Assets













Cash




$30,872




$36,086




$37,974




Accounts receivable, net




89,476




63,151




50,632




Merchandise inventory




112,499




83,450




54,467




Prepaid expenses




9,942




9,473




4,219




Plant assets, net




291,143




268,126




244,108




Total assets




$533,932




$460,286




$391,400




Liabilities and Equity













Accounts payable




$130,290




$76,233




$50,632




Long-term notes payable secured by mortgages on plant assets




98,372




103,748




107,769




Common stock, $10 par value




142,500




132,500




102,500




Retained earnings




182,770




147,805




130,499




Total liabilities and equity




$533,932




$460,286




$391,400
























































































For Year Ended December 31




2014




2013




Sales







$694,112







$547,740




Cost of goods sold




$423,408







$356,031







Other operating expenses




215,175







138,578







Interest expense




11,800







12,598







Income taxes




9,023







8,216







Total costs and expenses







659,406







515,423




Net income







$34,706







$32,317




Earnings per share







$2.14







$1.99












What is the company’s profit margin ratio for 2014?





A. 65%
B. 12%
C. 3.7%
D. 5.9%
E. 5.0%





113. A company’s balance sheet and income statement accounts follow:




































































































At December 31




2014




2013




2012




Assets













Cash




$30,872




$36,086




$37,974




Accounts receivable, net




89,476




63,151




50,632




Merchandise inventory




112,499




83,450




54,467




Prepaid expenses




9,942




9,473




4,219




Plant assets, net




291,143




268,126




244,108




Total assets




$533,932




$460,286




$391,400




Liabilities and Equity













Accounts payable




$130,290




$76,233




$50,632




Long-term notes payable secured by mortgages on plant assets




98,372




103,748




107,769




Common stock, $10 par value




142,500




132,500




102,500




Retained earnings




182,770




147,805




130,499




Total liabilities and equity




$533,932




$460,286




$391,400
























































































For Year Ended December 31




2014




2013




Sales







$694,112







$547,740




Cost of goods sold




$423,408







$356,031







Other operating expenses




215,175







138,578







Interest expense




11,800







12,598







Income taxes




9,023







8,216







Total costs and expenses







659,406







515,423




Net income







$34,706







$32,317




Earnings per share







$2.14







$1.99












What is the company’s gross margin ratio for 2013?



A. 65%
B. 35%
C. 67%
D. 33%
E. 39%









114. A company has sales of $2,458,422, a gross profit ratio of 23%, a days’ sales in inventory ratio of 12.4, and total current assets of $539,600. What is the ending inventory for the year?





A. $46,013
B. $58,000
C. $64,310
D. $61,715
E. $55,951







115. A company has sales of $5,417,000, a gross profit ratio of 35%, ending merchandise inventory of $201,425, and total current assets of $1,539,600. What is the days sales’ in inventory ratio for the year?



A. 6.10
B. 20.88
C. 26.15
D. 22.67
E. 15.77

























116. A company has long-term notes payable of $175,625, taxes of $9,500, ending merchandise inventory of $450,290, interest expense of $14,050, net sales of $720,000 a gross profit ratio of 35%, a times interest earned ratio of 4.23, and total assets of $1,300,417. What is the company’s earnings before interest and taxes?





A. $252,000
B. $65,814
C. $269,710
D. 106,696
E. $59,432







117. A company has total assets of $5,600,482, common stock of $2,111,111, retained earnings of $1,058,473. What is the company’s debt ratio?



A. 43.41%
B. 65.00%
C. 41.57%
D. 50.00%
E. 42.81%









118. A company has total assets of $5,600,482, common stock of $2,111,111, retained earnings of $1,058,473. What is the company’s equity ratio?



A. 43.41%
B. 65.00%
C. 41.57%
D. 56.59%
E. 54.22%











May 15, 2022
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