FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The following information relates to SE10-5 through SE10-7:
(in millions)
Net sales...
Cost of goods sold
SE10-7.
Gross profit.
Selling and administrative expenses
Income from operations
Interest expense..
EVANS & SONS, INC.
Income Statement
For Years Ended December 31, 2019 and 2018
Income before income taxes
Income tax expense.
Net income
(in millions)
Assets
Current assets
Cash and cash equivalents
Accounts receivable
Inventory..
Other current assets.
Total current assets
Property, plant, & equipment (net)
Other assets.
Total Assets
Liabilities and Stockholders' Equity
Current liabilities.
Long-term liabilities.
Total liabilities..
EVANS & SONS, INC.
Balance Sheet
December 31, 2019 and 2018
Stockholders' equity - common.
Total Liabilities and Stockholders' Equity..
2019
9,800
(5,500)
4,300
(2,800)
1,500
(300)
$
1,200
2019
100
900
500
400
2018
1,900
2,600
5,700
$10,200
9,300
(5,200)
4,100
(2,700)
(220)
(200)
$980 $950
1,400
$
(250)
1,150
2018
300
800
650
250
2,000
2,500
5,900
$10,400
$ 3,000 $ 2,900
5,000
5,400
8,000
8,300
2,200
2,100
$10,200 $10,400
SE10-5. Current Ratio Calculate the current ratio for Evans & Sons, Inc., for 2018 and 2019, and comment
on the company's working capital position. Did the company's ability to pay its current liabilities
improve over the two years?
SE10-6. Quick Ratio Calculate the quick ratio for Evans & Sons, Inc., for 2018 and 2019, and comment
on the company's working capital position. Did the company's ability to pay its current liabilities
improve over the two years?
Times-Interest-Earned Ratio Calculate the times-interest-earned ratio for Evans & Sons, Inc., for
2018 and 2019, and comment on the company's ability to pay its current interest payments. Did the
company's ability to pay its current interest charges improve?
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