PR 17-4B Measures of liquidity, solvency and profitability Obj. 3 - Describe and illustrate how to use financial statement analysis to assess liquidity., 4 - Describe and illustrate how to use...

1)return on common stockholders equity 2)price-earnings ratio 3) dividend per share of common stock
PR 17-4B<br>Measures of liquidity, solvency and profitability<br>Obj. 3 - Describe and illustrate how to use financial statement analysis to<br>assess liquidity., 4 - Describe and illustrate how to use financial statement<br>analysis to assess solvency., 5 - Describe and illustrate to to use financial<br>statement analysis to assess profitability.<br>The comparative financial statements of Stargel Inc. are as<br>follows. The market price of Stargel common stock was $119.70<br>on December 31, 20Y2.<br>Excel<br>Stargel Inc.<br>Comparative Retained Earnings Statement<br>For the Years Ended December 31, 20Y2 and 20Y1<br>20Υ2<br>20Υ1<br>Retained earnings, January 1..<br>Net income.<br>$5,375,000<br>$4,545,00<br>900,000<br>925,00<br>Total<br>$6,275,000<br>$5,470,00<br>Dividends:<br>DIvidends.<br>On preferred stock<br>%24<br>45,000<br>$ 45,00<br>50,000<br>50,00<br>n On common stock..<br>$ 95,00<br>$ 95,000<br>$6,180,000<br>Total dividends.<br>$5.375,00<br>Retained earnings, December 31<br>

Extracted text: PR 17-4B Measures of liquidity, solvency and profitability Obj. 3 - Describe and illustrate how to use financial statement analysis to assess liquidity., 4 - Describe and illustrate how to use financial statement analysis to assess solvency., 5 - Describe and illustrate to to use financial statement analysis to assess profitability. The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Excel Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1.. Net income. $5,375,000 $4,545,00 900,000 925,00 Total $6,275,000 $5,470,00 Dividends: DIvidends. On preferred stock %24 45,000 $ 45,00 50,000 50,00 n On common stock.. $ 95,00 $ 95,000 $6,180,000 Total dividends. $5.375,00 Retained earnings, December 31
Statement<br>Ended December 31, 20Y2 and 20Y1<br>Cost of goods sold.<br>Gross profit.<br>20Y2<br>20Y1<br>$10,000,000<br>$9 A00,000<br>Selling expenses<br>Administrative expenses.<br>5,350,000<br>$ 4,650,000<br>$ 2,000,000<br>4,950,000<br>$4,A50,000<br>$1.880,000<br>Total operating expenses<br>Income from operations<br>1,500,000<br>$ 3,500,000<br>$ 1,150,000<br>1A10,000<br>$3,290,000<br>Other income.<br>Interes exRense<br>Other expense finterest)<br>Jncome before income tax<br>$1,160,000<br>140,000<br>$1,300,000<br>150,000<br>$ 1,300,000<br>170,000<br>S,130,000<br>150,000<br>Income tax expense<br>$1,150,000<br>Net income.<br>230,000<br>225,000<br>es<br>$ 900,000<br>$ 925,000<br>Stargel Inc.<br>Comparative Balance Sheet<br>December 31, 20Y2 and 20Y1<br>20Υ2<br>20Υ1<br>Assets<br>Current assets:<br>Cash<br>Marketable securities..<br>$ 500,000<br>$ 400,000<br>,010,000<br>740.000+ 510,000-(29 cC<br>1,000,000<br>Accounts receivable (net)<br>1,190,000 +<br>950,000 2<br>Anventories<br>250,000<br>$3,690,000<br>229,000<br>Prepaid expenses<br>Total current assets..<br>$3,089,000<br>2,350,000<br>2,300,000<br>Long-term investments..<br>Property, plant, and equipment (net)<br>Total assets<br>3,740,000<br>3,366,000<br>$49,780,000 $8,755,000<br>Liabilities<br>$ 880,000<br>$ 900,000<br>Current liabilities.<br>Long-term liabilities:<br>Mortgage note payable, 10%.<br>Bonds payable, 10%.<br>Total long-term liabilities<br>$ 200,000<br>%24<br>1,500,000<br>1,500,000<br>$1,700,000<br>$1,500,000<br>$2,380,000<br>$2,600,000<br>Total liabilities<br>$ 500,000<br>$ 500,000<br>500,000<br>Stockholders' Equity<br>500,000<br>Preferred $0.90 stock, $10 par<br>5,375,000<br>6,180,000<br>Common stock, $5 par....<br>Retained earnings...<br>$7,180,000+ $6,375,000<br>$8,755,000<br>$9,780,000<br>Total stockholders' equity.<br>Total liabilities and stockholders' equity.<br>ructions<br>

Extracted text: Statement Ended December 31, 20Y2 and 20Y1 Cost of goods sold. Gross profit. 20Y2 20Y1 $10,000,000 $9 A00,000 Selling expenses Administrative expenses. 5,350,000 $ 4,650,000 $ 2,000,000 4,950,000 $4,A50,000 $1.880,000 Total operating expenses Income from operations 1,500,000 $ 3,500,000 $ 1,150,000 1A10,000 $3,290,000 Other income. Interes exRense Other expense finterest) Jncome before income tax $1,160,000 140,000 $1,300,000 150,000 $ 1,300,000 170,000 S,130,000 150,000 Income tax expense $1,150,000 Net income. 230,000 225,000 es $ 900,000 $ 925,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Assets Current assets: Cash Marketable securities.. $ 500,000 $ 400,000 ,010,000 740.000+ 510,000-(29 cC 1,000,000 Accounts receivable (net) 1,190,000 + 950,000 2 Anventories 250,000 $3,690,000 229,000 Prepaid expenses Total current assets.. $3,089,000 2,350,000 2,300,000 Long-term investments.. Property, plant, and equipment (net) Total assets 3,740,000 3,366,000 $49,780,000 $8,755,000 Liabilities $ 880,000 $ 900,000 Current liabilities. Long-term liabilities: Mortgage note payable, 10%. Bonds payable, 10%. Total long-term liabilities $ 200,000 %24 1,500,000 1,500,000 $1,700,000 $1,500,000 $2,380,000 $2,600,000 Total liabilities $ 500,000 $ 500,000 500,000 Stockholders' Equity 500,000 Preferred $0.90 stock, $10 par 5,375,000 6,180,000 Common stock, $5 par.... Retained earnings... $7,180,000+ $6,375,000 $8,755,000 $9,780,000 Total stockholders' equity. Total liabilities and stockholders' equity. ructions
Jun 05, 2022
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