Sarasota Company manufactures backpacks. During 2025, Sarasota issued bonds at 10% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Sarasota Company for the years 2025 and 2024. 2025 2024 Sales revenue Net income $9,300,000 $9,300,000 2,458,500 2,646,000 Interest expense 520,000 152,000 Tax expense 921,500 1,017,200 Dividends paid on common stock 958,815 1,111,320 Dividends paid on preferred stock 390,000 390,000 Total assets (year-end) 15,500,000 17,500,000 Average total assets 16,500,000 18,375,000 Total liabilities (year-end) 6,479,000 3,132,500 Avg. total common stockholders' equity 23,500,000 35,250,000 (a) Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, e.g. 12.5 or 12.5%.) 2025 % (1) Return on assets Return on common (2) % stockholders' equity (3) Payout ratio (4) Debt to assets ratio % (5) Times interest earned times eTextbook and Media 2024 % % % % % times
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- The top part of Ramakrishnan, Inc.'s, 2021 and 2020 balance sheets is listed below (in millions of dollars). 2021 2020 Current assets: Cash and marketable securities Accounts receivable Inventory Total $ 34 143 206 $383 $ 25 128 187 $340 Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total 2021 $ 32 87 76 $195 2020 $ 31 76 68 $175Crane Corporation reported the following information (in thousands) at December 31, 2024: Dividends payable Bank loan payable-current portion Bank loan payable-non-current portion Common shares Retained earnings Additional information: 1. 2. 3. 4. The Net income for the year was $410 2024 $20 240 e Textbook and Media 470 630 790 2023 $10 240 270 The bank loan was increased by additional borrowings of $380 to partially finance the purchase of new equipment that cost $520. The bank loan was decreased by repayments. Common shares were issued during the year. None were repurchased. company paid dividends during the year. 480 540 Prepare the financing activities section of Crane's statement of cash flows for the year. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) CRANE CORPORATION Statement of Cash Flows (Partial) ($ in thousands) Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $520 by…A Corporation had the following data concerning selected financial data taken from the records listed below.For the year ended December 312021 2020Cash 80,000 640,000Note and account receivable 400,000 1,200,000Merchandise Inventory 720,000 1,200,000Marketable Securities 240,000 80,000Land and Building (net) 2,720,000 2,880,000Bond Payable 2,160,000 2,240,000Account Payable 560,000 880,000Note Payable Short Term 160,000 320,000Sales (20% cash, 80% credit) 18,400,000 19,200,000Cost of Good Sold 8,000,000 11,200,000Required : Compute the following ratios1. current ratio as of December 31,20212. Quick ratio as of December 31, 20213. Account Receivable Turnover ratio for 20214. Merchandise inventory turn over for 20215. The Gross margin for 20206. the average age of account Receivable for 2021( use 360 days
- The Murdock Corporation reported the following balance sheet data for 2021 and 2020: 2021 2020 Cash $ 77,375 $ 22,955 Available-for-sale debt securities (not cash equivalents) 15,500 85,000 Accounts receivable 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, buildings, and equipment 1,250,000 1,125,000 Accumulated depreciation (610,000 ) (572,000 ) Total assets $ 979,375 $ 876,205 Accounts payable $ 76,340 $ 148,670 Salaries payable 20,000 24,500 Notes payable (current) 25,000 75,000 Bonds payable 200,000 0 Common stock 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders' equity $ 979,375 $ 876,205 Additional information for 2021:(1) Sold available-for-sale debt securities costing $69,500 for $74,000.(2) Equipment costing $20,000 with a book value of…The Murdock Corporation reported the following balance sheet data for 2024 and 2023: 2024 2023 Cash $ 98,465 $ 34,355 Available-for-sale debt securities (not cash equivalents) 25,000 104,000 Accounts receivable 99,000 85,350 Inventory 184,000 162,100 Prepaid insurance 3,210 3,900 Land, buildings, and equipment 1,288,000 1,144,000 Accumulated depreciation (629,000) (591,000) Total assets $ 1,068,675 $ 942,705 Accounts payable $ 93,440 $ 167,670 Salaries payable 27,600 34,000 Notes payable (current) 42,100 94,000 Bonds payable 219,000 0 Common stock 300,000 300,000 Retained earnings 386,535 347,035 Total liabilities and shareholders' equity $ 1,068,675 $ 942,705 Additional information for 2024: (1) Sold available-for-sale debt securities costing $79,000 for $85,400. (2) Equipment costing $20,000 with a book value of $6,900 was sold for $8,850. (3) Issued 6% bonds payable at face value, $219,000. (4) Purchased new equipment for $164,000 cash. (5)…The balance sheets for Sports Unlimited for 2021 and 2020 are provided below.SPORTS UNLIMITED Balance Sheets For the years ended December 31 2021 2020AssetsCurrent assets:Cash $ 103,500 $ 70,400Accounts receivable 46,800 32,000Inventory 44,550 71,200Prepaid rent 7,200 3,600Long-term assets:Investment in bonds 54,900 0Land 117,450 141,600Equipment 106,200 102,000Less: Accumulated depreciation (30,600) (20,800)Total…
- Balance sheet computations. (Balance Sheet) Presented below is the trial balance of Hightower Corporation at December 31, 2025 Debit Credit Cash 295,000 Sales Revenue $12,150,000 Debt Investments (trading) (at cost, $218,000) 230,000 Cost of Goods Sold 7,200,000 Debt Investments (long-term) 448,000 Equity Investments (long-term) 416,000 Notes Payable (short-term) 135,000 Accounts Payable 682,000 Selling Expenses 3,000,000 Investment Revenue 95,000 Land 390,000 Buildings 1,560,000 Dividends Payable 204,000 Accrued Liabilities 144,000 Accounts Receivable 652,000 Accumulated Depreciation–Buildings 228,000 Allowance for Doubtful Accounts 38,000 Administrative Expenses 1,350,000 Interest Expense 317,000 Inventory 895,000 Gain 120,000 Notes Payable (long-term) 1,350,000 Equipment 900,000 Bonds Payable 1,500,000 Accumulated Depreciation–Equipment 90,000 Franchises 240,000 Common Stock ($5 par) 1,500,000 Treasury Stock 287,000 Patents 293,000 Retained Earnings 117,000 Paid-in Capital…Balance sheet computations. (Balance Sheet) Presented below is the trial balance of Hightower Corporation at December 31, 2025 Debit Credit Cash 295,000 Sales Revenue $12,150,000 Debt Investments (trading) (at cost, $218,000) 230,000 Cost of Goods Sold 7,200,000 Debt Investments (long-term) 448,000 Equity Investments (long-term) 416,000 Notes Payable (short-term) 135,000 Accounts Payable 682,000 Selling Expenses 3,000,000 Investment Revenue 95,000 Land 390,000 Buildings 1,560,000 Dividends Payable 204,000 Accrued Liabilities 144,000 Accounts Receivable 652,000 Accumulated Depreciation–Buildings 228,000 Allowance for Doubtful Accounts 38,000 Administrative Expenses 1,350,000 Interest Expense 317,000 Inventory 895,000 Gain 120,000 Notes Payable (long-term) 1,350,000 Equipment 900,000 Bonds Payable 1,500,000 Accumulated Depreciation–Equipment 90,000 Franchises 240,000 Common Stock ($5 par) 1,500,000 Treasury Stock 287,000 Patents 293,000 Retained Earnings 117,000 Paid-in Capital…In 2021, Bank Muscat reported the following amounts in its Balance sheet and Income Statement. Assets 1032600 OMR Liabilities 805500 OMR Interest Revenue 602300 OMR Interest Expense 404000 OMR Earning assets are 75% of Total Assets. Interest Bearing Liabilities are 80% of Total Liabilities. What is the Spread of Bank Muscat? Select one: Oa. 2.54 % Ob. 15.08 % Oc. 8.17 % Od. 27.62 %
- Following are selected financial and operating data taken from the financial statements of Antiporda Corporation: As of December 31 2019 2020 Cash. ₱80,000 ₱640,000 Notes&Accounts receivable,net 400,000 1,200,000 Merchandise inventory 720,000 1,200,000 Marketable Securities-short term 240,000 80,000 Land and buildings(net) 2,720,000 2,880,000 Bonds payable-long term 2,160,000 2,240,000 Accounts payable-trade 560,000 880,000 Notes payable-short term 160,000 320,000 For the year ended December 31 2019 2020 Sales (20%cash, 80% credit sales) 18,400,000 19,200,000 Cost of goods sold 8,000,000 11,200,000 Compute the following…nterpret the results of the debt to equity ratio and how the company has managed debt over the last two years. Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000 Total Assets $1,647,000 $1,870,000 Account Payable $150,000 $100,000 Accruals 101,000 95,000 Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000 Total Liabilities 656,000 770,000 Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000 Total Stockholders’ Equity 991,000 1,100,000 Total Liabilities & Equity $1,647,000 $1,870,000 Income Statement…Presented below is the current liabilities section of Micro Corporation. ($000) 000 2021 000 2020 Current liabilities Notes payable $ 68,713 $ 7,700 Accounts payable 179,496 101,379 Compensation to employees 60,312 31,649 Accrued liabilities 158,198 77,621 Income taxes payable 10,486 26,491 Current maturities of long-term debt $416,592 $416,649 Total current liabilities $493,797 $251,489 Instructions Answer the following questions. a. What are the essential characteristics that make an item a liability? b. How does one distinguish between a current liability and a long-term liability? c. What are accrued liabilities? Give three examples of accrued liabilities that Micro might have. d. What is the theoretically correct way to value liabilities? How are current liabilities usually valued? e. Why are notes payable reported first in the current liabilities section? f. What might be the items that…