The following financial statements apply to Zachary Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 52700 b. a. C. d. e. f. Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned 9- h. Working capital i. Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover L Inventory turnover m. Debt-to-equity ratio Debt-to-assets ratio n. $ S Year 2 Required Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations. 19.38 % 11.84 % 17.24 % 0.33 196,400 4.56 times times 6.46 times 0.63 times 0.40 29 % S S Year 1 18.72 % 9.46 % 13.77 % 0.27 188,200 4.67 Year 2 $ 220,800 $ 5,700 1,900 36,800 203,000 4,200 251,600 105,600 20,400 $ 377,600 times 34 % 125,800 19,700 10,700 1,300 20,500 178,000 $ 42,800 128,000 141,700 269,700 $ 377,600 times 5.34 times 0.51 times 0.52 $ 39,200 16,000 55,200 52,700 107,900 Year 1 $ 182,700 102,100 17,700 9,700 1,300 17,700 148,500 $ 34,200 $ 7,800 1,900 31,600 195,000 3,200 239,500 105,600 0 $ 345,100 $ 35,000 16,300 51,300 66,900 118,200 128,000 98,900 226,900 $ 345,100
The following financial statements apply to Zachary Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 52700 b. a. C. d. e. f. Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned 9- h. Working capital i. Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover L Inventory turnover m. Debt-to-equity ratio Debt-to-assets ratio n. $ S Year 2 Required Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations. 19.38 % 11.84 % 17.24 % 0.33 196,400 4.56 times times 6.46 times 0.63 times 0.40 29 % S S Year 1 18.72 % 9.46 % 13.77 % 0.27 188,200 4.67 Year 2 $ 220,800 $ 5,700 1,900 36,800 203,000 4,200 251,600 105,600 20,400 $ 377,600 times 34 % 125,800 19,700 10,700 1,300 20,500 178,000 $ 42,800 128,000 141,700 269,700 $ 377,600 times 5.34 times 0.51 times 0.52 $ 39,200 16,000 55,200 52,700 107,900 Year 1 $ 182,700 102,100 17,700 9,700 1,300 17,700 148,500 $ 34,200 $ 7,800 1,900 31,600 195,000 3,200 239,500 105,600 0 $ 345,100 $ 35,000 16,300 51,300 66,900 118,200 128,000 98,900 226,900 $ 345,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vishnu
Transcribed Image Text:The following financial statements apply to Zachary Company:
Revenues
Expenses
Cost of goods sold
Total expenses
Net income
Assets
Current assets
Cash
Selling expenses
General and administrative expenses
Interest expense
Income tax expense
Marketable securities
Accounts receivable
Inventories
Prepaid expenses
Total current assets.
Plant and equipment (net)
Intangibles
Total assets
Liabilities and Stockholders' Equity
Liabilities
Current liabilities
Accounts payable
Other
Total current liabilities
Bonds payable
Total liabilities
Stockholders' equity
Common stock (43,000 shares)
Retained earnings
a.
b.
C.
d.
Return on equity
Earnings per share
e. Price-earnings ratio
f. Book value per share of common stock
9- Times interest earned
h.
Net margin
Return on investment
i. Current ratio
m.
n.
Working capital
j. Quick (acid-test) ratio
k. Accounts receivable turnover
1. Inventory turnover
Debt-to-equity ratio
Debt-to-assets ratio
$
$
Year 2
Total stockholders' equity
Total liabilities and stockholders' equity
52700
Required
Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your
calculations.
19.38 %
11.84 %
17.24 %
0.33
196,400
4.56
times
times
6.46 times
0.63 times
0.40
29 %
$
$
Year 1
18.72 %
9.46 %
13.77 %
0.27
188,200
4.67
Year 2
$ 220,800
$ 5,700
1,900
36,800
203,000
4,200
51,600
105,600
20,400
$ 377,600
times
34 %
125,800
19,700
10,700
times
1,300
20,500
178,000
$ 42,800
128,000
141,700
269,700
$ 377,600
5.34 times
0.51 times
0.52
$ 39,200
16,000
55,200
52,700
107,900
Year 1
$ 182,700
102,100
17,700
9,700
1,300
17,700
148,500
$ 34,200
$ 7,800
1,900
31,600
195,000
3,200
239,500
105,600
0
$ 345,100
$ 35,000
16,300
51,300
66,900
118, 200
128,000
98,900
226,900
$ 345,100
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