The companies are in the same
line of business and are direct competitors in a large metropolitan
area. Both have been in business approximately 10 years and each
has had steady growth. Despite these similarities, the management
of each has a different viewpoint in many respects. Blair is more
conservative, and as its president said, “We avoid what we consider
to be undue risk.” Both companies use straight-line depreciation,
but Blair estimates slightly shorter useful lives than Armstrong.
No shares were issued in the current year and neither company is
publicly held. Blair Company has an annual audit by a CPA, but
Armstrong Company does not. Assume the end-of-year total assets and
net equipment balances approximate the year’s average and all sales
are on account. Required: 1. Calculate the following ratios. TIP:
To calculate EPS, use the balance in Common Stock to determine the
number of shares outstanding. Common Stock equals the par value per
share times the number of shares. (Use 365 days in a year. Round
your intermediate calculations and your final answers to 2 decimal
places.)
The companies are in the same line of business and are direct competitors in a large...
THE FIRST COMPANY IS ARMSTRONG COMPANY AND THE SECOND IS BLAIR
COMPANY
Company Company Balance Sheet $ 43,000 48.000 116,000 196,000 53,000 $ 456,000 $116,000 76.000 192,000 158.000 38,000 68,000 $456,000 $30,000 38.000 56,000 316,000 616,000 $856,000 $ 66,000 386,000 452,000 200.000 118,000 78.000 $856,000 Recounts Receivable, Net Inventory Equipment, Net Other last Total Assets Current Liabilities Note Payable (long-ter) Total Liabilities Common Stock (par $10) Additional Paid-in Capital Retained Earnings Total Liabilities and stockholders' Equity Income statement Sales Revenue...
Thor
Company
Gunnar
Company
Balance Sheet
Cash
$
36,000
$
33,000
Accounts Receivable, Net
78,000
29,000
Inventory
156,000
32,000
Equipment, Net
772,000
194,000
Other Assets
197,000
69,400
Total Assets
$
1,239,000
$
357,400
Current Liabilities
$
170,000
$
20,000
Note Payable (long-term) (12% interest rate)
268,000
68,000
Common Stock (par $20)
673,000
253,000
Additional Paid-in Capital
71,000
5,800
Retained Earnings
57,000
10,600
Total Liabilities and Stockholders’ Equity
$
1,239,000
$
357,400
Income Statement
Sales Revenue
$
1,123,000
$
339,000
Cost...
The financial statements for Royale and Cavalier companies are summarlzed here: Royale Company Cavalier Сompany Balance Sheet Cash $20,000 50,000 100,000 63,000 11,000 Accounts Receivable, Net Inventory Equipment, Net 15,000 150,000 540,000 135,000 Other Assets 41,000 Total Assets $845,000 $280,000 Current Liabilities $110,000 180,000 $15,000 45,000 205,000 6,000 9,000 Note Payable long-term) Common Stock (par $20) Additional Paid-In Capital Retained Earnings 475,000 45,000 35,000 Total Liabilities and Stockholders Equity $845,000 $280,000 Income Statement Sales Revenue $785,000 475,000 235,000 $265,000 145,000...
The financial statements for Royale and Cavalier companies are summarized here: Royale Company Cavalier Company Balance Sheet Cash $ 17,000 $ 80,000 Accounts Receivable, Net 47,000 8,000 Inventory 94,000 9,000 Equipment, Net 534,000 144,000 Other Assets 132,000 38,000 Total Assets $ 824,000 $ 279,000 Current Liabilities $ 104,000 $ 21,000 Note Payable (long-term) 174,000 39,000 Common Stock (par $20) 472,000 202,000 Additional Paid-In Capital 42,000 9,000 Retained Earnings 32,000 8,000 Total Liabilities and Stockholders’ Equity $ 824,000 $ 279,000 Income...
Summary information from the financial statements of two companies
competing in the same industry follows.
Barco
Company
Kyan
Company
Barco
Company
Kyan
Company
Data from the current year-end balance
sheets
Data from the current year’s income
statement
Assets
Sales
$
770,000
$
880,200
Cash
$
19,500
$
34,000
Cost of goods sold
585,100
632,500
Accounts receivable, net
46,500
64,600
Interest expense
7,900
13,000
Merchandise inventory
84,440
132,500
Income tax expense
14,800
24,300
Prepaid expenses
5,000
6,950
Net income
162,200...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 64,600 Interest expense 7,900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,800 24,300 Prepaid expenses 5,000 6,950 Net income 162,200...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year and balance sheets Assets Cash $ 21,000 $31.000 Accounts receivable, et 37.400 54,400 Current notes receivable (trade) 9,800 3.200 Merchandise inventory 84,840 134,500 Prepaid expenses 6,200 2,850 Plant annets, net 290,000 306,400 Total assets $449,240 $542,350 Barco Kyan Company Coepany Data from the current year's income statement Sales $800,000 $920,200 cost of goods sold 587,100 634.500...
Chapter 13 Homework (Algo) 0 The financial statements for Royale and Cavalier companies are summarized here: Royale Company Cavalier Company Dont ebook Balance Sheet Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets Total Assets Current Liabilities Note Payable long-tera) Common Stock (par 520) Additional Paiden Capital Retained Tarnings Total Liabilities and Stockholders' Equity Income Statement Sales avenue Cost of Goods sold Other Expenses Net Income Other Data Por ahore price at end of year Selected Data from previous Year...
Summary information from the financial statements of two companies competing in the same industry follows. Problem 13-5A Comparative ratio analysis A1P3 T Barco Company Kyan Company Barco Сотрату Kyan Сотрату Sales Data from the current year-end balance sheets Assets Cash ... $19,500 Accounts receivable, net 37.400 Current notes receivable (trade).... 9.100 Merchandise inventory.......... 84.440 Prepaid expenses 5.000 Plant assets, net... 290,000 Total assets.. $445,440 $ 34,000 57.400 7.200 132.500 6.950 304,400 $542.450 Data from the current year's income statement $770,000...
Summary information from the financial statements of two companies competing in the same industry follows. Cash Barco Kyan Barco Kyan Company Company Company Company Data from the current year end balance sheets Data from the current year's income statesent $770,000 $880, 200 $ 19,500 $ 34,000 Cost of goods sold 585,100 532.500 Accounts receivable. net 37.400 57.400 Interest expense 7,900 13.000 Current notes receivable (trade) 9, 100 7,200 Income tax expense 14,800 24.300 Merchandise inventory 34,449 132.500 Net Income 162,200...