
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
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
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps with 2 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education