FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Determine the following (1–18) measures for 20Y2, rounding to one decimal place, except the dollar amount, which should be rounded to the nearest cent. Use the rounded answer to the requirement for subsequent requirements, if required. Assume 365 days a year. Show each formula and calculation on the worksheet.
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amount |
which should be rounded to the nearest cent. use the rounded answer to
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the requirment for subsequent requirements, if required. Assume 365 days a year.
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Formula | Calculation and Answer | ||||||||||||||||||
1 | Stargel Inc. | ||||||||||||||||||
2 |
Comparative
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3 | Quick ratio |
For the Years Ended December 31, 20Y2 and 20Y1
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4 |
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20Y2 | 20Y1 | ||||||||||||||||
5 | Number of days' sales in receivables | days |
Retained earnings, January 1
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$5,375,000 | $4,545,000 | ||||||||||||||
6 |
Inventory turnover
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Net income | $900,000 | $925,000 | |||||||||||||||
7 | Number of days' sales in inventory | days | Dividends: | ||||||||||||||||
8 |
Ratio of fixed assets to long-term liabilities
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On
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-45,000 | -45,000 | |||||||||||||||
9 |
Ratio of liabilities to
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On common stock
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-50,000 | -50,000 | |||||||||||||||
10 |
Times interest earned
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Increase in retained earnings
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$805,000 | $830,000 | |||||||||||||||
11 | Asset turnover |
Retained earnings, December 31
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$6,180,000 | $5,375,000 | |||||||||||||||
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 rati0 | ||||||||||||||||||
17 | Dividends per share of common stock | ||||||||||||||||||
18 | Dividend yield | ||||||||||||||||||
Stargel Inc. | Stargel Inc. | ||||||||||||||||||
Comparative
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Comparative Income Statement
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December 31, 20Y2 and 20Y1
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For the Years Ended December 31, 20Y2 and 20Y1
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20Y2 | 20Y1 | 20Y2 | 20Y1 | ||||||||||||||||
Assets | Sales | $10,000,000 | $9,400,000 | ||||||||||||||||
Current assets: |
Cost of goods sold
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-5,350,000 | -4,950,000 | ||||||||||||||||
Cash | $500,000 | $400,000 | Gross profit | $4,650,000 | $4,450,000 | ||||||||||||||
Marketable securities
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1,010,000 | 1,000,000 |
Selling expenses
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-$2,000,000 | -$1,880,000 | ||||||||||||||
Accounts receivable (net)
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740,000 | 510,000 |
Administrative expenses
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-1,500,000 | -1,410,000 | ||||||||||||||
Inventories | 1,190,000 | 950,000 |
Total operating expenses
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-$3,500,000 | -$3,290,000 | ||||||||||||||
Prepaid expenses | 250,000 | 229,000 |
Operating income
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$1,150,000 | $1,160,000 | ||||||||||||||
Total current assets
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$3,690,000 | $3,089,000 |
Other revenue and expense:
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Long-term investments
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2,350,000 | 2,300,000 | Other revenue | 150,000 | 140,000 | ||||||||||||||
Property, plant, and equipment (net)
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3,740,000 | 3,366,000 |
Other expense (interest)
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-170,000 | -150,000 | ||||||||||||||
Total assets | $9,780,000 | $8,755,000 |
Income before income tax expense
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$1,130,000 | $1,150,000 | ||||||||||||||
Liabilities |
Income tax expense
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-230,000 | -225,000 | ||||||||||||||||
Current liabilities | $900,000 | $880,000 | Net income | $900,000 | $925,000 | ||||||||||||||
Long-term liabilities:
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Mortgage note payable, 10%
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$200,000 | $0 | |||||||||||||||||
Bonds payable, 10%
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1,500,000 | 1,500,000 | |||||||||||||||||
Total long-term liabilities
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$1,700,000 | $1,500,000 | |||||||||||||||||
Total liabilities | $2,600,000 | $2,380,000 | |||||||||||||||||
Stockholders' Equity
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Preferred $0.90 stock, $10 par
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$500,000 | $500,000 | |||||||||||||||||
Common stock, $5 par
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500,000 | 500,000 | |||||||||||||||||
Retained earnings | 6,180,000 | 5,375,000 | |||||||||||||||||
Total stockholders' equity
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$7,180,000 | $6,375,000 | |||||||||||||||||
Total liabilities and stockholders' equity
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$9,780,000 | $8,755,000 |
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