Question

The following financial information is for Priscoll Company. Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 115,500 Debt investments (short-term) 90.750 Accounts receivable 171,600 Inventory 379,500 Prepaid expenses 41,250 Land 214,500 Building and equipment (net) 429,000 Total assets $1,442,100 Liabilities and Stockholders' Equity Notes payable (short-term) $280,500 Accounts payable 107,250 Accrued liabilities 66,000 Bonds payable, due 2023 412,500 Common stock, $10 par 330,000 Retained earnings 245,850 Total liabilities and stockholders' equity $1,442,100 2019 $ 107,250 66,000 148,500 272,250 37,950 214,500 305,250 $1,151,700 $198,000 85,800 66,000 280,500 330,000 191,400 $1,151,700 Priscoll Company Income Statement For the Years Ended December 31 2020 2019

Answer 1

2019 2020 LIQUIDITY 1.67 1.81 Current Ratio= Total Current Assets/ Total Current Liabilities Accounts Receivable Turnover= Net Credit Sales/ Average Accounts Receivables 9.1 times 9.0 times Inventory Turnover= Cost of Goods Sold/ Average Inventory 3.2 times 4.1 times - Profit Margin= Net Income / Revenue 5.90% 6.08% Asset Turnover= Sales/ - Average Total Assets 1.12 times 1.16 times Return on Assets= 5 Net Income / Total Assets 5.9% 6.9% $2.6 $2.4 Earnings Per Share = - Net Income / Average Outstanding Shares of the company

2019 2020 LIQUIDITY 1.67 1.81 Current Ratio= Total Current Assets/ Total Current Liabilities Accounts Receivable Turnover= Net Credit Sales/ Average Accounts Receivables 9.1 times 9.0 times Inventory Turnover= Cost of Goods Sold/ Average Inventory 3.2 times 4.1 times - Profit Margin= Net Income / Revenue 5.90% 6.08% Asset Turnover= Sales/ - Average Total Assets 1.12 times 1.16 times Return on Assets= 5 Net Income / Total Assets 5.9% 6.9% $2.6 $2.4 Earnings Per Share = - Net Income / Average Outstanding Shares of the company

2019 2020 LIQUIDITY 1.76 1.81 Current Ratio= Total Current Assets/ Total Current Liabilities Accounts Receivable Turnover= Net Credit Sales/ Average Accounts Receivables 9.1 times 9.0 times Inventory Turnover= Cost of Goods Sold/ Average Inventory 3.2 times 4.1 times Profit Margin= Net Income / Revenue 5.90% 6.10% Asset Turnovers Sales/ Average Total Assets 1.12 times 1.16 times Return on Assets= Net Income / Total Assets 6% 6.90% $2.58 $2.40 Earnings Per Share = Net Income / Average Outstanding Shares of the company
All the above ratios are computed above.

Working Notes (forming part of answer) :

1. Currents Assets includes = Cash + Debt Investments + Accounts Receivables + Inventory + Prepaid Expenses.

2. Current Liabilities includes = Notes payable + Accounts payable + Accrued Liabilities.

3. Average Accounts Receivables = Opening Accounts Receivables + Closing Accounts Receivables / 2

4. Average Inventory = Opening Inventory + Closing Inventory / 2

5. Asset Turnover = Opening Assets + Closing Assets / 2

6. Average Outstanding Shares of the company = $330000 / 10 = 33000 shares.