Question 32
Balance sheet
Cash $41,000 $21,000
Account receivable (net) 38,000 31,000
Inventory 99,000 40,000
Property & equipment 140,000 401,000
Other assets 84,000 305,000
Total assets $402,000 $798,000
Current liabilities $ 99,000 $49,000
Long term debt (interest rate: 10%) 65,000 60,000
Capital stock ($10 per value) 148,000 512,000
Additional paid in capital 29,000 106,000
Retainined earning 61,000 71,000
Total liabilities and stockholders equity $402,000 $798,000
Income Statement
Sales revenue (1/3 on credit) $447,000 $802,000
Cost of goods sold (241,000 (400,000)
Operating expense (161,000) (311,000)
Net income $45,000 $91,000
Other data:
Per-share stock price at end of current year $22 $15
Average income tax rate 30% 30%
Dividends declared and paid in current year $33,000 $148,000
Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue water is more conservative, and its president has said, “We avoid what we consider to be undue risk” Neither company is publicly held.
Requirement
Ration Blue Water Company Prime Fish Company
Profitability ratio
Quality of income
Turnover ratio
Solvency ratios
Times Interest Earned Ratio ? ?
Cash Coverage Ratio ? ?
Question 32 Balance sheet Cash $41,000 $21,000 Account receivable (net) 38,000 31,000 Inventory 99,000 40,000 Property & equipment 140,000 401,000 Other assets 84,000 305,000 Total assets $402,000 $798,000 Current liabilities $ 99,000 $49,000 Long term debt (interest rate: 10%) 65,000 60,000 Capital stock ($10 per value) 148,000 512,000 Additional paid in capital 29,000 106,000 Retainined earning 61,000 71,000 Total liabilities and stockholders equity $402,000 $798,000 Income Statement Sales revenue (1/3 on credit) $447,000 $802,000 Cost of goods sold (241,000 (400,000)...
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets 21,000 31,000 40,000 401,000 305,000 $ 798,000 49,000 60,000 512,000 106,000 71,000 $ 798,000 $ 41,000 38,000 99,000 140,000 84,000 $ 402,000 99,000 65,000 148,000 29,000 61,000 $ 402,000 $ Current liabilities $ Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in...
For the following chart, the left column is Walmart and the
right column is CVS. Both have been in business for 10 years with
steady growth but each business has a different viewpoint in many
respects. Walmart is more conservative, and as its president has
said, “We avoid what we consider to be undue risk.” Neither company
is publicly held. Create a schedule that shows ratio analysis for
Walmart and CVS (show work if needed).
WALMART
CVS
Profitability Ratio
1....
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property &equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of...
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock $10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end...
I created a schedule of the ratio analysis with the information
given. I am missing three ratios. I need to show work and find:
'Quality of Income' and
'Times interest earned ratio' and
'cash coverage ratio'. Use the photos to
help find those three ratios.
Blue Water Prime Fish Balance sheet: $ 42,100 $ Cash Accounts receivable (net) 19,900 34,300 43,500 Inventory 93,500 46,600 156,500 414,200 Property & equipment (net) Other assets 85,100 316,000 Total assets $ 831,000 $ 420,700...
Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 960,000 $ 1,200,000 Marketable securities 0 300,000 Accounts receivable, net 2,700,000 1,800,000 Inventory 3,600,000 2,000,000 Prepaid expenses 260,000 200,000 Total current assets 7,520,000 5,500,000 Plant and equipment, net 9,520,000 9,050,000 Total assets $ 17,040,000 $ 14,550,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,010,000 $ 2,980,000 Note payable, 10% 3,660,000 3,060,000 Total liabilities 7,670,000 6,040,000 Stockholders' equity: Common stock, $75 par value 7,500,000 7,500,000 Retained...
Marin Company's condensed financial statements provide the following information. MARIN COMPANY BALANCE SHEET Dec. 31, Dec. 31, 2019 2020 $ 52,500 $ 59,500 Cash Accounts recelvable (net) 199,800 80,000 Short-term investments 80,000 39,800 Inventory 439,400 363,300 Prepaid expenses 3,000 6,900 $ 774,700 $ 549,500 Total current assets Property, plant, and equipment (net) 854,900 849,200 $1,629,600 $1,398,700 Total assets Current liabilities 233,500 154,600 Bonds payable 402,000 402,000 Common stockholders' equity 994,100 842,100 $1,629,600 $1,398,700 Total liabilities and stockholders' equity INCOME STATEMENT...
Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 960,000 $ 1,200,000 Marketable securities 0 300,000 Accounts receivable, net 2,700,000 1,800,000 Inventory 3,600,000 2,000,000 Prepaid expenses 260,000 200,000 Total current assets 7,520,000 5,500,000 Plant and equipment, net 9,520,000 9,050,000 Total assets $ 17,040,000 $ 14,550,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,010,000 $ 2,980,000 Note payable, 10% 3,660,000 3,060,000 Total liabilities 7,670,000 6,040,000 Stockholders' equity: Common stock, $75 par value 7,500,000 7,500,000 Retained...
13.178 (LO 4) Ratio Computation a l S December 31, 2000, presented the following balance sheet c h abernoperating for several years, SINGLETON COMPANY BALANCE SHEET DROEMERE 31.21 Cash $40.000 20.000 Receivables Inventories Plants $ 20,000 37.500 47.500 110.000 215 mm Accounts payable Mortgage payable Common stock (51 par) Retained eaming (net) $215.000 The net income for 2020 was $12.500. Assume that totales are the same in 2019 and 2020. Instructions Compute each of the following ration. For each of...