RIVERSIDE SWEETS Balance Sheet June 30, 2018 and 2019 2019 2018 Assets Current Assets: Cash $ 25,000 $ 119,000 Short-term Investments 685,000 650,000 Accounts Receivable 225,000 198,000 Merchandise Inventory 65,000 70,000 Other Current Assets "95,000 191,000 Total Current Assets 1,295,000 1,228,000 Property, Plant, and Equipment, Net 875,000 832,000 Total Assets $ 2,170,000 $ 2,060,000 Liabilities Current Liabilities: Accounts Payable $ 265,000 $ 251,750 Accrued Liabilities 641,000 725,523 Total Current Liabilities 906,000 977,273 Long-term Liabilities Bonds Payable 250,000 150,000 Mortgage Payable 150,000 175,000 Total Long-term Liabilities 400,000 325,000 Total Liabilities 1,306,000 1,302,273 Stockholders' Equity Common Stock, $1 par, 225,000 shares issued and outstanding Paid-In Capital in Excess of Par 225,000 225,000 58,000 58,000 Retained Earnings 581,000 864,000 474,727 Total Stockholders' Equity 757,727 Total Liabilities and Stockholders' Equity $2,170,000 $ 2,060,000 RIVERSIDE SWEETS Income Statement Year Ended June 30, 2019 Net Sales Revenue $ 2,800,000 Cost of Goods Sold 1,551,600 Gross Profit 1,248,400 Operating Expenses 450,540 Operating Income 797,860 Other Income and (Expenses): Interest Expense (15,000) Income Before Income Taxes 782,860 Income Tax Expense 153,529 Net Income $ 629,331

Using Excel for financial statement analysis

Download an Excel temp/ate for this problem online in MyAccountingLab or at http://www.pearsonhighered.com/Horngren Riverside Sweets, a retail candy store chain, reported the following figures:

Additional financial information:

a. 75% of net sales revenue are on account.

b. Market price of stock is $36 per share on June 30, 2019.

c. Annual dividend for 2019 was $1.50 per share.

d. All short-term investments are cash equivalents.

Requirements

1. Perform a horizontal analysis on the balance sheet for 2018 and 2019.
2. Perform a vertical analysis on the income statement.
3. Compute the following ratios:

a. Working Capital

b. Current Ratio

c. Acid-Test (Quick) Ratio

d. Cash Ratio

e. Accounts Receivable Turnover

f. Days’ Sales in Receivables

g. Inventory Turnover

h. Days’ Sales in Inventory

i. Gross Profit Percentage

j. Debt Ratio

k. Debt to Equity Ratio

l. Times-Interest-Earned Ratio

m. Profit Margin Ratio

n. Rate of Return on Total Assets

o. Asset Turnover Ratio

v. Rate of Return on Common Stockholders’ Equity

q. Earnings per Share (EPS)

r. Price/Earnings Ratio

s. Dividend Yield

t. Dividend Payout