RevenuesExpensesCost of goods soldSelling expensesGeneral and administrativeexpensesInterest expenseIncome tax expenseTotal expensesNet incomeAssetsCurrent assetsCashMarketable securitiesAccounts receivableInventoriesPrepaid expensesTotal current assetsPlant and equipment (net)IntangiblesTotal assetsLiabilities and Stockholders'EquityLiabilitiesCurrent liabilitiesAccounts payableOtherTotal current liabilitiesBonds payableTotal liabilitiesYear 2$219,100Total liabilities andstockholders' equity124, 40019,70010,0001,70020, 100175,900$ 43,200$ 38,50015,80054,30064,300118,600Stockholders' equityCommon stock (43,000 shares)Retained earningsTotal stockholders' equity 159,000$277,600$ 4,800 $ 7,2002,8002,80036,60031, 100101,60094, 1003,9002,900149,700138, 100106,400 106,40021,5000$277,600$244,500Year 1$182,800114,90044, 100101, 10017,7009,0001,70016,900146,400$36,400$ 34,20016, 20050,40065,300115,700114,90013,900128,800$244,500RequiredCalculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not useaverages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and,therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.)h. Working capital.i. Current ratio. (Round your answers to 2 decimal places.)j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.)k. Accounts receivable turnover. (Round your answers to 2 decimal places.)I. Inventory turnover. (Round your answers to 2 decimal places.)m. Debt-to-equity ratio. (Round your answers to 2 decimal places.)n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.)a. Net marginb. Return on investmentc. Return on equityd. Earnings per sharee.f.g.غانعنh.Price-earnings ratioBook value per share of commonstockTimes interest earnedWorking capitalCurrent ratioQuick (acid-test) ratio|i.lj.k. Accounts receivable turnoverI.Inventory turnoverm. Debt-to-equity ration. Debt-to-assets ratio$Year 219.91 %14.89 %28.26 %0.857.11 times$ 3.00timestimestimes%$$Year 119.72 %15.56 %30.02 %1.004.96 times3.70timestimestimes%

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Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Year 2 Year 1 $219,100 $182,800 Total liabilities and stockholders' equity 124,400 19,700 10,000 1,700 20, 100 175,900 $43,200 $ 4,800 $ 7,200 2,800 2,800 31,100 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 101, 100 17,700 9,000 1,700 16,900 146,400 $ 36,400 54,300 64,300 118,600 Stockholders' equity Common stock (43,000 shares) 114,900 Retained earnings 44,100 Total stockholders' equity 159,000 $ 38,500 $ 34,200 15,800 16, 200 94, 100 2,900 138, 100 106,400 0 $244,500 50,400 65,300 115,700 114,900 13,900 128,800 $277,600 $244,500

Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Year 2 Year 1 $219,100 $182,800 Total liabilities and stockholders' equity 124,400 19,700 10,000 1,700 20, 100 175,900 $43,200 $ 4,800 $ 7,200 2,800 2,800 31,100 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 101, 100 17,700 9,000 1,700 16,900 146,400 $ 36,400 54,300 64,300 118,600 Stockholders' equity Common stock (43,000 shares) 114,900 Retained earnings 44,100 Total stockholders' equity 159,000 $ 38,500 $ 34,200 15,800 16, 200 94, 100 2,900 138, 100 106,400 0 $244,500 50,400 65,300 115,700 114,900 13,900 128,800 $277,600 $244,500

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 2FIC

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