ZuoTi.Pro
Question

Exercise 1413 Current Ratio, Debt Ratio, and Earnings per Share (L014-6, Lo14-7) Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Total assets (40% of which are current) Bonds payable, 12% Capital stock, $5 par value Retained earnings Total liabilities & stockholders equity $ 450,000 80,000 100,000 100,000 S 348,000 $ 100,000 50,000 100,000 98,000 5450,000 348,000 Dividends of $16,000 were declared and paid in year 2 a. Compute the current ratio for year 2 and year 1. (Round your answers to 1 decimal place.) b. Compute the debt ratio for year 2 and year 1. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%. c. Compute the earnings per share for year 2. (Round your answer to 2 decimal places.) Year 2 a. Current ratio to 1 to 1 b. Debt ratio Prev4 of 4l Next
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Year 2 $2.3 to 1 $1.4 to 1 4096196 Year 1 Current Ratio Debt Ratio Earnings per share $4.4 per share a. b. 43% | 96 Workings: Current Ratio = Current Assets Current Liabilities Year 2 = a. 180000 $2.25 $80,000 Year1 139200E 1.39 100,000 Current Assets = 40% of total assets Year 2 40% of $450000-180000 40% of $348000 139200 Year 1 Current Liability- $80,000 $100,000 Year2 Year 1b. Debt Ratio- Debt Equity +Debt Year 2 $180,000 $450,000 40% Year1 $150,000 $348,000 43% Debt Current liabilitiesBonds Payable year 2 80000+100000$180,000 Year 1100000+50000$150,000 Equity Debt+Equity Year 2$450,000 Year 1$348,000

Earnings per share Earnings $88,000 4.4 Numer of equity shares 20000 Earnings -increase in retained earnings = $170000-S98000 72000 Dividend paid Total = $ 72000+$ 16000 16000 $88,000 Number of sharesS100000/$ 5 per share20000 shares

0 0
Add a comment
Know the answer?
Add Answer to:
Exercise 1413 Current Ratio, Debt Ratio, and Earnings per Share (L014-6, Lo14-7) Selected items from successive...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1...

    Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1 Total assets (40% of which are current) $ 471,000 $ 385,000 Current liabilities $ 80,000 $ 100,000 Bonds payable, 12% 100,000 50,000 Capital stock, $5 par value 100,000 100,000 Retained earnings 191,000 135,000 Total liabilities & stockholders' equity $ 471,000 $ 385,000 Dividends of $16,000 were declared and paid in year 2. a. Compute the current ratio for year 2 and year 1. (Round...

  • Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1...

    Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1 Total assets (40% of which are current) $ 493,000 $ 333,000 Current liabilities $ 80,000 $ 100,000 Bonds payable, 12% 100,000 50,000 Capital stock, $5 par value 100,000 100,000 Retained earnings 213,000 83,000 Total liabilities & stockholders' equity $ 493,000 $ 333,000     Dividends of $16,000 were declared and paid in year 2. a. Compute the current ratio for year 2 and year 1....

  • Required information The Foundational 15 (LO14-2, L014-3, L014-4, LO14-5, LO14-6) (The following information applies to the...

    Required information The Foundational 15 (LO14-2, L014-3, L014-4, LO14-5, LO14-6) (The following information applies to the questions displayed below.) Markus Company's common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Beginning Balance Balance Cash $ 35,000 $ 30,000 Accounts receivable $ 60,000 $ 50,000 Inventory $ 55,000 $ 60,000 Current...

  • Problem 14-15 Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the...

    Problem 14-15 Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year...

  • Sales (all on credit) Cost of goods sold Average inventory Average accounts receivable Interest expense Income...

    Sales (all on credit) Cost of goods sold Average inventory Average accounts receivable Interest expense Income tax expense Net income Average investment in assets Average stockholders' equity $2,750, 000 1,781,00 375,000 282,000 45,000 84,000 159,000 1,800,000 895,000 Required a. From the information given: 1. Compute the inventory turnover. (Round your answer to 2 decimal places.) 2. Compute the accounts receivable turnover. (Round your answer to 2 decimal places 3. Compute the total operating expenses. 4 Compute the gross profit percentage....

  • Compute the current ratio, debt to assets ratioand earnings per share value. The average number of...

    Compute the current ratio, debt to assets ratioand earnings per share value. The average number of shares outstanding for 2022 was 11,300, . (Round ratios to 1 decimal places, e.g. 1.5:1 or 25.1\% and earnings per share to 2 decimal places 2.25.) Compute the current ratio, debt to assets ratio, and earnings per share value. The average number of shares outstanding for 2022 was 11,300. (Round ratios to 1 decimal places, e.g. 1.5:1 or 25.1% and earnings per share to...

  • Find current ratio, debt ratio and earnings per share Transactions a. Purchased merchandise inventory of $48,000...

    Find current ratio, debt ratio and earnings per share Transactions a. Purchased merchandise inventory of $48,000 on account. b. Borrowed $127,000 on a long-term note payable. c. Issued 1,000 shares of common stock, receiving cash of $106,000. d. Received cash on account, $5,000 Data Table Cash S 21,000 79,000 186.000 639,000 102.000 38,000 49000 221.000 69 000 10/000 Accounts Receivable Net (Round Merchandise Inventory Total Assets Accounts Payable Accrued Liabilities Short-term Notes Payable Long-term Liabilities Net Income Common Shares Outstanding...

  • Required information Problem 14-15 Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies...

    Required information Problem 14-15 Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year...

  • Problem 14-15 Comprehensive Ratio Analysis (LO14-2, LO14-3, LO14-4, LO14-5, LO14-6) [The following information applies to the...

    Problem 14-15 Comprehensive Ratio Analysis (LO14-2, LO14-3, LO14-4, LO14-5, LO14-6) [The following information applies to the questions displayed below.) You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financial statements for the last two years are as follows: Last Year Lydex Company Comparative Balance Sheet This Year...

  • (a) Compute earnings per share for 2017 and 2016 for Blossom. (Round answers to 2 decimal...

    (a) Compute earnings per share for 2017 and 2016 for Blossom. (Round answers to 2 decimal places, e.g. 52.75.) 2017 2016 Earnings per share (b) Compute the current ratio and debt to assets ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.) 2017 2016 Current ratio :1 :1 Debt to assets ratio % % (c) Compute free cash flow for each year. 2017 2016 Free cash flow $ Current Attempt in Progress The following information is available...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT