153. Selected balances from a company's financial statements are shown below:
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Dec. 31, 2013
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Dec. 31, 2014
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For the Year 2014
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Merchandise inventory
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$ 15,000
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$ 20,000
|
|
Accounts payable
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32,000
|
26,000
|
|
Salaries payable
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4,400
|
3,000
|
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Accounts receivable
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24,000
|
21,000
|
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Total assets
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234,000
|
286,000
|
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Sales (all on credit)
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|
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$312,000
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Cost of goods sold
|
|
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165,600
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Salaries expense
|
|
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48,000
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Other expenses
|
|
|
75,000
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Net income
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|
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24,000
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Use the information above to calculate the following current year ratios:
(a) 2014 inventory turnover.
(b) Days' sales uncollected at Dec. 31, 2014.
(c) 2014 profit margin.
(d) 2011 return on total assets.
154. The following selected company information was reported:
Accounts receivable, beginning-year
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$170,000
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Accounts receivable, year-end
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190,000
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Merchandise inventory, beginning-year
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80,000
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Merchandise inventory, year-end
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60,000
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Cost of goods sold
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580,000
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Credit sales
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1,000,000
|
Calculate the following company ratios:
(a) Accounts receivable turnover
(b) Inventory turnover
(c) Days' sales uncollected
155. Selected current year company information follows:
Net income
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$ 325,000
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Net sales
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4,700,000
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Total liabilities, beginning-year
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550,000
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Total liabilities, end-of-year
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530,000
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Total stockholders’ equity, beginning-year
|
760,000
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Total stockholders’ equity, end-of-year
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745,000
|
Calculate the following company ratios:
(a) Profit margin.
(b) Total asset turnover.
(c) Return on total assets.
(d) Return on common stockholders' equity (assume the company has no preferred stock).
156. Use the following information from the current year financial statements of a company to calculate the ratios below:
(a) Current ratio.
(b) Accounts receivable turnover. (Assume the prior year's accounts receivable balance was $100,000.)
(c) Days' sales uncollected.
(d) Inventory turnover. (Assume the prior year's inventory was $50,200.)
(e) Times interest earned ratio.
(f) Return on common stockholders' equity. (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g) Earnings per share (assuming the corporation has a simple capital structure, with only common stock outstanding).
(h) Price earnings ratio. (Assume the company's stock is selling for $26 per share.)
(i) Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.)
Income statement data:
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|
Sales (all on credit)
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$1,075,000
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Cost of goods sold
|
575,000
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Gross profit on sales
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$ 500,000
|
Operating expenses
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305,000
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Operating income
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$ 195,000
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Interest expense
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20,400
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Income before taxes
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$ 174,600
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Income taxes
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74,000
|
Net income
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$ 100,600
|
Balance sheet data:
|
|
Cash
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$ 38,400
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Accounts receivable
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120,000
|
Inventory
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56,700
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Prepaid Expenses
|
24,000
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Total current assets
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$239,100
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Total plant assets
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708,900
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Total assets
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$948,000
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Accounts payable
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$ 91,200
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Interest payable
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4,800
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Long-term liabilities
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204,000
|
Total liabilities
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$300,000
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Common stock, $10 par
|
480,000
|
Retained earnings
|
168,000
|
Total liabilities and equity
|
$948,000
|