Principles of Financial Accounting.
22nd Edition
ISBN: 9780077632892
Author: John J. Wild
Publisher: McGraw Hill
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Chapter 13, Problem 3BP
1.
To determine
Describe the transactions for the given
2.
To determine
Complete the given table in the given format.
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Profitability ratios
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015:
December 31 December 31 December 31
20Y7
20Y6
20Y5
$225,000
$204,000
80,000
80,000
32,000
32,000
Total assets
Notes payable (8% interest)
Common stock
Preferred 5% stock, $100 par
(no change during year)
Retained earnings
16,000
77,430
16,000
60,430
Check My Work
$182,000
80,000
32,000
The 2017 net income was $17,800, and the 20Y6 net income was $13,230. No dividends on common stock were declared between 2015 and 2017. Preferred dividends
were declared and paid in full in 2016 and 2017.
16,000
48,000
a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When
required, round your answers to one decimal place.
2017
8.3 X %
15.22 ✔%
5.6 X %
20Y6
6.9 X %
12.94%
-8.66 X %
Return on total assets
Return on stockholders equity
Return on common…
Ratio the liabilities to stockholders equity and times interest earned. following data were taken from the financial statement of Hunter Inc.for December 31st of two recent years:
Current year
accounts payable
$434,000.
Current maturity.
290,000
Serial bonds payable, 10%
1,190,000
Common stock,$1 par value
70,000
Paid- in capital in excess of par
700,000
Retained earnings
2,420,000
Previous year
$127,000
290,000
1,480,000
90,000
700,000
1,920,000
The income before income tax expense was $518,000 and $453,000 for the camera in previous years respectively.
A. Determine the ratio of liabilities to stockholders Equity at the end of each year. Round to one decimal place.
Current year
Previous year
B. Determine the times interest earned ratio for both years. Round to one decimal place.
Current year
Previous year
C. The ratio of liabilities to stockholders Equity has _______and the number of times bond interest charges were earned has_______ from…
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
Current Year
Previous Year
Accounts payable
$697,000
$182,000
Current maturities of serial bonds payable
430,000
430,000
Serial bonds payable, 10%
1,750,000
2,180,000
Common stock, $1 par value
90,000
100,000
Paid-in capital in excess of par
900,000
910,000
Retained earnings
3,120,000
2,480,000
The income before income tax was $610,400 and $534,100 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
Current year
Previous year
b. Determine the times interest earned ratio for both years. Round to one decimal place.
Current year
Previous year
c. The ratio of liabilities to stockholders' equity has and the times interest earned…
Chapter 13 Solutions
Principles of Financial Accounting.
Ch. 13 - A corporation issues 6,000 shares of 5 par value...Ch. 13 - A company reports net income of 75,000. Its...Ch. 13 - A company has 5,000 shares of 100 par preferred...Ch. 13 - A company paid cash dividends of 0.81 per share....Ch. 13 - Prob. 5MCQCh. 13 - What are organization expenses? Provide examples.Ch. 13 - How are organization expenses reported?Ch. 13 - Prob. 3DQCh. 13 - What is the difference between authorized shares...Ch. 13 - Prob. 5DQ
Ch. 13 - List the general rights of common stockholders.Ch. 13 - What is the difference between the market value...Ch. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Identify and explain the importance of the three...Ch. 13 - Prob. 11DQCh. 13 - How does declaring a stock dividend affect the...Ch. 13 - What is the difference between a stock dividend...Ch. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 18DQCh. 13 - How is book value per share computed for a...Ch. 13 - Prob. 20DQCh. 13 - Prob. 21DQCh. 13 - Prob. 22DQCh. 13 - Prob. 1QSCh. 13 - Issuance of common stock Prepare the journal entry...Ch. 13 - Issuance of par and stated value common stock...Ch. 13 - Issuance of no-par common stock Prepare the...Ch. 13 - Prob. 5QSCh. 13 - Accounting for cash dividends Prepare journal...Ch. 13 - Accounting for small stock dividend The...Ch. 13 - Accounting for dividends For each of the following...Ch. 13 - Preferred stock issuance and dividends 1. Prepare...Ch. 13 - Dividend allocation between classes of...Ch. 13 - Purchase and sale of treasury stock On May 3,...Ch. 13 - Prob. 12QSCh. 13 - Prob. 13QSCh. 13 - Basic earnings per share Murray Company reports...Ch. 13 - Epic Company earned net income of 900,000 this...Ch. 13 - Price-earnings ratio Compute Topp Companys...Ch. 13 - Prob. 17QSCh. 13 - Book value per common share The stockholders...Ch. 13 - Prob. 19QSCh. 13 - Prob. 1ECh. 13 - Accounting for par, stated, and no-par stock...Ch. 13 - Recording stock issuances Prepare journal entries...Ch. 13 - Stock issuance for noncash assets Sudoku Company...Ch. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - The equity section of Cyril Corporations balance...Ch. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Stockholders equity transactions and analysis...Ch. 13 - Prob. 2APCh. 13 - Prob. 3APCh. 13 - Prob. 4APCh. 13 - Prob. 5APCh. 13 - Stockholders equity transactions and analysis...Ch. 13 - Prob. 2BPCh. 13 - Prob. 3BPCh. 13 - Prob. 4BPCh. 13 - Prob. 5BPCh. 13 - Prob. 13SPCh. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 5BTNCh. 13 - Prob. 7BTNCh. 13 - Prob. 9BTN
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- Ratio of liabilities to stockholders' equity and times interest earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $740,000 $170,000 Current maturities of serial bonds payable 440,000 440,000 Serial bonds payable, 10% 1,740,000 2,180,000 Common stock, $1 par value 80,000 90,000 Paid-in capital in excess of par Retained earnings 800,000 2,770,000 810,000 2,200,000 The income before income tax expense was $893,800 and $782,100 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place. Current year 0.8 Previous year 1.0 X b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Current year Previous year 4.8 X 3.8 X c. The ratio of liabilities to stockholders' equity has improved previous year. These results are the…arrow_forwardRatio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $344,000 $208,000 Current maturities of serial bonds payable 350,000 350,000 Serial bonds payable, 10% 1,630,000 1,980,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par 730,000 730,000 Retained earnings 2,520,000 2,000,000 The income before income tax was $534,600 and $467,800 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year Previous year b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year c. The ratio of liabilities to stockholders' equity has improved and the…arrow_forwardStockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $553,500 Paid-In Capital from Sale of Treasury Stock 22,700 Paid-In Capital in Excess of Par-Common Stock 14,760 Retained Earnings 869,000 Treasury Stock 11,495 Prepare the Stockholders' Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 605 shares have been reacquired. Goodale Properties Inc. Stockholders' Equity June 30 Paid-In Capital: Total Paid-In Capital %24arrow_forward
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