a) | Current Ratio = Current Assets / Current Liabilities | ||
2020 | 2019 | ||
= $1300/808 | = $1437/902 | ||
=1.61 times | =1.59 times | ||
b) | Average Inventory = (beginning inventory + ending inventory)/2 | ||
2020 | 2019 | ||
= ( $466+368)/2 | = ( $350+466)/2 | ||
= $ 417 | = $ 408 | ||
Inventory Turnover Ratio = Cost of goods sold / average inventory | |||
2020 | 2019 | ||
= $906/417 | = $954/408 | ||
=2.17 times | =2.34 times | ||
c) | Profit Margin = Net Income / Sales | 2020 | 2019 |
= $524/3940 | = $360/3810 | ||
=13.3 % | =9.5 % | ||
d) | Average Assets = (beginning Assets + ending Assets)/2 | ||
2020 | 2019 | ||
= ( $2401+2155)/2 | = ( $1894+2401)/2 | ||
= $ 2278 | = $ 2147.5 | ||
Return On Assets = Net Income / Average Assets | |||
2020 | 2019 | ||
= $524/2278 | = $360/2147.5 | ||
=23 % | =16.8 % | ||
e) | Average Stockholders Equity = (beginning Stockholders Equity + ending Stockholders Equity)/2 | ||
2020 | 2019 | ||
= ( $1097+995)/2 | = ( $880+1097)/2 | ||
= $ 1046 | = $ 988.5 | ||
Return On Stockholders Equity = Net Income / Average Stockholders Equity | |||
2020 | 2019 | ||
= $524/1046 | = $360/988.5 | ||
=50.1 % | =36.4 % | ||
f) | Debt To Asset Ratio = Total Debt / Total Assets | ||
2020 | 2019 | ||
= $1160/2155 | = $1304/2401 | ||
=53.8% | =54.3% | ||
g) | Times Interest Earned Ratio = EBIT/ Interest expenses | ||
2020 | 2019 | ||
= $694/22 | = $462/20 | ||
=31.6 times | =23.1 times | ||
Do It! Review 14-3 The condensed financial statements of Murawski Company for the years 2019 and...
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands.) MURAWSKI COMPANY Balance Sheets December 31 2020 2019 $ 367 472 472 122 1,433 15 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $ 378 382 400 160 1,320 14 350 480...
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands.) Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnover ratio to 2 decimal places, e.g. 1.62 decimal place, e.g. 1.6 or 1.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/18 was $341.) (c) Profit margin ratio. (d) Return on assets. (Assets on 12/31/18 were $1,872.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/18 was $898.) (f) Debt to assets ratio. (g)...
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands MURAWSKI COMPANY Balance Sheets December 31 2020 2019 $ 352 $ 354 360 1.268 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $2.203 $ 804 $ 912 360 1.070 1.041 $2.205 $2364...
The condensed financial statements of Blossom Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) BLOSSOM COMPANY Balance Sheets December 31 2020 2019 $330 $360 670 600 500 430 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets 120 160 1,620 210 420 530 1,550 210 380 510 Total assets $2,780 $2,650 $990 Current liabilities Long-term liabilities Stockholders' equity-common $1,100...
CES Practice Do It! Review 01 The condensed financial statements of Cullumber Company for the years 2019 and 2020 are presented as follows. (An A CULLUMBER COMPANY Balance Sheets December 31 2020 2019 $360 600 590 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets $330 670 660 120 1,780 210 420 530 160 1,710 210 380 510 $2,810 $2,940 Total assets Current liabilities Long-term...
Exercise 18-13 The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below. Ness Company Balance Sheets December 31 (in thousands) 2020 2019 Current assets Cash and cash equivalents $300 $320 Accounts receivable (net) 450 430 Inventory 490 360 Prepaid expenses 120 150 Total current assets 1,360 1,260 Property, plant, and equipment (net) 370 360 Investments 1 10 Intangibles and other assets 580 560 Total assets $2,311 $2,190 Current liabilities $750 $870 Long-term liabilities 521...
The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below. Ness Company Balance Sheets December 31 (in thousands) 2020 2019 Current assets Cash and cash equivalents $320 $350 Accounts receivable (net) 420 430 Inventory 430 380 Prepaid expenses 140 160 Total current assets 1,310 1,320 Property, plant, and equipment (net) 370 380 Investments 1 10 Intangibles and other assets 520 470 Total assets $2,201 $2,180 Current liabilities $740 $780 Long-term liabilities 451 390 Stockholders’...
Do It! Review 9-3 |x Your answer is incorrect. Try again. The condensed financial statements of Blossom Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) BLOSSOM COMPANY Balance Sheets December 31 2017 2016 $360 570 450 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment (net) Intangibles and other assets 160 $330 640 520 120 1,610 180 420 530 1,540 180 380 510...
The condensed financial statements of Crane Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) CRANE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments $330 $360 570 500 580 510 120 160 1,600 1,530 110 110 420 380 530 510 $2,660 $2,530 $1,000 $890 530 500 Property, plant, and equipment (net) Intangibles and other assets Total assets Current liabilities Long-term...
The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) IVANHOE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 550 Inventory 530 460 Prepaid expenses 160 120 1,530 Total current assets 1,460 Investments Property, plant, and equipment (net) Intangibles and other assets Total assets 420 380 530 510 $2,570 $2,440 $980 $870 480 450 1,110 1,120 Current liabilities Long-term liabilities...