Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Marshall, Inc. Comparative Balance Sheets December 31, 2022 and 2021 2022 Total current assets Long-term investments Property, plant, and equipment (net) Total assets Current liabilities: Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total liabilities Total long-term liabilities Preferred 4% stock, $5 par Common stock, $5 par Retained earnings Assets $ 1,050,000 301,000 585,000 Liabilities 420,000 108,000 $ 2,464,000 800,000 5,760,000 $9.024.000 Total stockholders' equity Total liabilities and stockholders' equity $ 880,000 $ 200,000 3,000,000 $3,200,000 $4,080,000 Stockholders' Equity $ 250,000 500,000 4,194,000 $ 4,944,000 $9.024.000 2021 $ 950,000 420,000 500,000 380,000 20,000 $ 2,270,000 800,000 5,184,000 $ 8.254.000 $ 800,000 $ 0 3,000,000 $3,000,000 $3,800,000 $ 250,000 500,000 3,704,000 $4,454,000 $ 8.254.000 Retrieved from: Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage Instructions Determine the following measures for 2022, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield Retrieved from: Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
1. Find the Ratio of FIxed Assets to long term liabilities
2. Find the ratio of liabilities to
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