Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows:
Endless Mountain Company | ||||||
Balance Sheet | ||||||
December 31, 2021 | ||||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 46,200 | ||||
Accounts receivable (net) | 260,000 | |||||
Raw materials inventory (4,500 yards) | 11,250 | |||||
Finished goods inventory (1,500 units) | 32,250 | |||||
Total current assets | $ | 349,700 | ||||
Plant and equipment: | ||||||
Buildings and equipment | 900,000 | |||||
Accumulated depreciation | (292,000 | ) | ||||
Plant and equipment, net | 608,000 | |||||
Total assets | $ | 957,700 | ||||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 158,000 | ||||
Stockholders’ equity: | ||||||
Common stock | $ | 419,800 | ||||
Retained earnings | 379,900 | |||||
Total stockholders’ equity | 799,700 | |||||
Total liabilities and stockholders’ equity | $ | 957,700 | ||||
The company’s chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget:
Integration Exercise 18 Financial Statement Ratio Analysis [LO 16-2, LO 16-3, LO 16-4, LO 16-5]
Required:
1. To help assess the company’s liquidity, calculate the following at December 31, 2022:
a. Working capital
b. Current ratio
2. To help assess the company’s asset management, calculate the following for 2022:
a. Accounts receivable turnover
b. Average collection period
c. Inventory turnover
d. Average sale period
e. Operating cycle
3. To help assess the company’s debt management, calculate the following for 2022:
a. Times interest earned ratio
b. Equity multiplier
4. To help assess the company’s profitability, calculate the following for 2022:
a. Net profit margin percentage
b. Return on equity
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Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows: Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets: Cash $ 46,200 Accounts receivable (net) 260,000 Raw materials inventory (4,500 yards) 11,250 Finished goods inventory (1,500...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows: Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets: Cash $ 46,200 Accounts receivable (net) 260,000 Raw materials inventory (4,500 yards) 11,250 Finished goods inventory (1,500...
Required information [The following information applies to the questions displayed below.] Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows: Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets: Cash $ 46,200 Accounts receivable (net)...
Required information (The following information applies to the questions displayed below.] Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows: $ 46,200 260,000 11,250 32,250 $349,700 Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets:...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout Northern England. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows:Endless Mountain Company Balance SheetDecember 31, 2016AssetsCurrent assets:Cash$ 46,200Accounts receivable (net)260,000Raw materials inventory (4,500 yards)11,250Finished goods inventory (1,500 units) 32,250 Total current assets$ 349,700Plant and equipment:Buildings and equipment900,000Accumulated depreciation (292,000) Plant and equipment, net 608,000 Total...
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows:Endless Mountain CompanyBalance SheetDecember 31, 2021AssetsCurrent assets:Cash$46,200Accounts receivable (net)260,000Raw materials inventory (4,500 yards)11,250Finished goods inventory (1,500 units)32,250Total current assets$349,700Plant and equipment:Buildings and equipment900,000Accumulated depreciation(292,000)Plant and equipment, net608,000Total assets$957,700Liabilities and...
ete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following budgeted figures for 2022: a. The total fixed cost. b. The variable cost per unit sold. c. The contribution margin per unit sold. d. The break-even point in unit sales and dollar sales. e. The margin of safety. f. The degree of operating leverage. Show less a. Total fixed cost per year b. Total variable cost per unit sold c. Contribution margin...
Please solve for required in images. Wrong answers shown with RED X MARK. Please only answer if you know you are right this is the second time I have asked this question. Required information [The following information applies to the questions displayed below.) Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a...
Please solve for required in image 1-2. Required information [The following information applies to the questions displayed below.) Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows: $ 46,200 260,000 11,250 32,250 $349,700 Endless Mountain Company Balance...
Please solve for answers with RED X in image Required 2 c-e, use 365 days in a year. Please solve for equity multiplier in Required 3 b. THE BALANCE SHEET IS CORRECT. I VERIFIED IT WITH THE SOFTWARE'S CHECK MY WORK PROBLEM. PLEASE SOLVE. USE THE FOLLOWING INFORMATION TO HELP: Required information [The following information applies to the questions displayed below.) Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product...