Use the following information to answer the following 5 questions. XYZ Company Balance Sheet as of December 31, 20X7 & 20X8
ASSETS: |
20X7 |
20X8 |
Current assets: |
||
Cash |
$10,000 |
$12,000 |
Accounts receivable |
20,000 |
25,000 |
Inventory |
16,000 |
24,000 |
Prepaid insurance |
4,000 |
3,000 |
50,000 |
64,000 |
|
Property & equipment |
76,000 |
84,000 |
Total assets |
$126,000 |
$148,000 |
LIABILITIES AND STOCKHOLDERS EQUITY: |
||
Current liabilities: |
||
Accounts payable |
$15,000 |
$17,000 |
Other payables |
3,000 |
7,000 |
18,000 |
24,000 |
|
Long term notes payable |
35,000 |
40,000 |
Total liabilities |
53,000 |
64,000 |
Stockholder's equity |
||
Capital stock, 2,400 shares outstanding |
24,000 |
24,000 |
Retained earnings |
49,000 |
60,000 |
73,000 |
84,000 |
|
Total liabilities and stockholders equity |
$126,000 |
$148,000 |
XYZ Company Income Statement for the years ended December 31, 20X7 & 20X8
20X7 |
20X8 |
|
Sales revenues |
$200,000 |
$250,000 |
Cost of goods sold |
120,000 |
140,000 |
80,000 |
110,000 |
|
Selling and admin. expenses |
40,000 |
65,000 |
40,000 |
65,000 |
|
Income tax expense |
15,000 |
25,000 |
Net income |
$25,000 |
$40,000 |
Dividends paid in 20X8 amounted to $29,000. Calculate the
12/31/X8 current ratio (round to
nearest tenth).
18. Calculate the 12/31/X8 current ratio (round to nearest tenth).
1.5
2.7
2.5
.5
none of the above
19. Calculate the 20X8 accounts receivable turnover assuming all sales during the year are made on account (round to the nearest tenth).
8.9
10.0
11.1
12.5
none of the above
20. Calculate the 20X8 average number of days of inventory on hand (round to the nearest tenth of a day).
7.0
52.1
56.2
62.6
21. Calculate the 20X8 EPS (round to nearest penny).
$25.00
$10.42
$4.58
$16.67
none of the above
22. Calculate the % increase in accounts receivable during the year ended 20X8.
10%
20%
50%
125%
none of the above
18. Current assets = $64000
Current liabilities = $24000
Current ratio = $64000/$24000 = 2.67 or 2.7
19. Account receivable turnover = sales / avg act rec
Avg account rec = ($20000 + $25000) / 2
= $22500
Account rec turnover = $250000 / $22500
= 11.1
20. Inventory turnover ratio = COGS / avg inventory
Avg inventory = ($16000 + $24000) / 2 = $20000
Inventory turnover ratio = $140000/20000 = 7
Average number of inventory on hand = 365 / 7 = 52.1
21. Earnings for shareholders = $40000
Number of shares = 2400
EPS = $40000/2400 = $16.67
22.. % increase in account receivable =
= ($25000 - $20000) / $20000 * 100
= 25%
So answer will be none of the above.
Use the following information to answer the following 5 questions. XYZ Company Balance Sheet as of...
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sheet for Just Dew It. (Do not round intermediate
calculations. Round your answers to 4 decimal places, e.g.,
32.1616.)
Any help is appreciated :)
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