Question

S10-14 (similar to) Assigned Media Question Help The financial statements of Mountainview Employment Services, Inc., reported the following accounts: (Click the icon to view the list of accounts.) 3 (Click the icon to view the statement of stockholders' equity.) Read the requirements. Calculate the following for Mountainview Employment Services: A Data Table a. Net income Mountainview's net income is 352,000 58,000 Total revenues ..........$ Accounts payable ....... Paid-in capital in excess of par .........$ Notes Payable (short-term) .............. Common stock, $0.01 par 1,100,000 shares issued Retained earnings ....... 1,800,000 160,000 662,000 360,000 1,100,000 11,000 21,000 Other current liabilities ... Total expenses ......... Long-term debt .... LUTYLCI U CNL . . . . . . . . . . . . . . . . . . . . . Print Done

Answer 1

a	Net Income =Total Revenues - Total Expenses
	Net Income =$1,800,000 - $1,100,000 =$700,000
b	Total Liabilities =Notes payaable(Short-term) + Long-term debt + Accounts Payable + Other current liabilities
	Total Liabilities =$58,000 + 21,000 + 160,000 + 360,000 =$599,000
c	Total Assets =Total Liabilities + Total Shareholders equity
	Total Assets =$559,000 + $1,025,000 =$1,624,000
d	Net Profit Margin ratio =Net Income / Total revenue
	Net Profit Margin ratio =$700,000 / $1,800,000 =38.89%
e	Total Assets Turnover =Total revenue / Average Total Assets
	Total Assets Turnover =$1,800,000 / $1,624,000 =1.11
f	Leverage Ratio =Total Debt / Total Assets
	Leverage Ratio =($58,000+21,000+160,000) / $1,624,000
	Leverage Ratio =$239,000 / $1,624,000 =0.15
g	Return on equity =Net Income / Total Shareholders equity
	Return on equity =$700,000 / $1,025,000 =68.29%