Homework Help is Here – Start Your Trial Now!
Business
Accounting
Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Adams Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $220,700 125,800 101,600 19,300 17,300 10,000 9,000 1,100 1,100 19, 100 16,600 175,300 145,600 $ 45,400 $ 35,800 Year 1 $181,400 $ 5,400 $ 2,100 36,700 101,800 4,700 53,700 65,500 119, 200 7,000 2,100 150,700 139,700 106,300 106,300 21,900 $278,900 $246,000 113,500 46,200 159,700 $278,900 31,100 95,800 3,700 $ 38,400 $ 35,000 15,300 0 15, 100 50, 100 66,500 116, 600 113,500 15,900 129,400 $246,000 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. . Net margin. (Round your answers to 2 decimal places.) . Return on investment. (Round your answers to 2 decimal places.) . Return on equity. (Round your answers to 2 decimal places.) 1. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.00 and $4.82, respectively). (Round your ntermediate calculations and final answers to 2 decimal places.) Book value per share of common stock. (Round your answers to 2 decimal places.) . Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, herefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) . Working capital. . Current ratio. (Round your answers to 2 decimal places.) . Quick (acid-test) ratio. (Round your answers to 2 decimal places.) . Accounts receivable turnover. (Round your answers to 2 decimal places.) . Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) . Debt-to-assets ratio. (Round your answers to the nearest whole percent.)

Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Adams Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $220,700 125,800 101,600 19,300 17,300 10,000 9,000 1,100 1,100 19, 100 16,600 175,300 145,600 $ 45,400 $ 35,800 Year 1 $181,400 $ 5,400 $ 2,100 36,700 101,800 4,700 53,700 65,500 119, 200 7,000 2,100 150,700 139,700 106,300 106,300 21,900 $278,900 $246,000 113,500 46,200 159,700 $278,900 31,100 95,800 3,700 $ 38,400 $ 35,000 15,300 0 15, 100 50, 100 66,500 116, 600 113,500 15,900 129,400 $246,000 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. . Net margin. (Round your answers to 2 decimal places.) . Return on investment. (Round your answers to 2 decimal places.) . Return on equity. (Round your answers to 2 decimal places.) 1. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.00 and $4.82, respectively). (Round your ntermediate calculations and final answers to 2 decimal places.) Book value per share of common stock. (Round your answers to 2 decimal places.) . Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, herefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) . Working capital. . Current ratio. (Round your answers to 2 decimal places.) . Quick (acid-test) ratio. (Round your answers to 2 decimal places.) . Accounts receivable turnover. (Round your answers to 2 decimal places.) . Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) . Debt-to-assets ratio. (Round your answers to the nearest whole percent.)

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 10SPB: RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE MENT S Refer to the financial statements in Problem...
See similar textbooks
icon
Related questions
Question
Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Adams Company: Year 2 $220,700 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 125,800 19,300 10,000 $ 1,100 19, 100 175,300 $ 45,400 $ 35,800 36,700 101,800 4,700 5,400 $ 2,100 Year 1 $181,400 $ 38,400 15,300 101, 600 17,300 9,000 1,100 16, 600 145, 600 53,700 65,500 119, 200 150,700 139,700 106,300 106,300 21,900 0 $278,900 $246,000 113,500 46, 200 159, 700 $278,900 7,000 2,100 31,100 95,800 3,700 $ 35,000 15, 100 50, 100 66,500 116, 600 113,500 15,900 129,400 $246,000 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.00 and $4.82, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) Vaard
Transcribed Image Text:Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Adams Company: Year 2 $220,700 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 125,800 19,300 10,000 $ 1,100 19, 100 175,300 $ 45,400 $ 35,800 36,700 101,800 4,700 5,400 $ 2,100 Year 1 $181,400 $ 38,400 15,300 101, 600 17,300 9,000 1,100 16, 600 145, 600 53,700 65,500 119, 200 150,700 139,700 106,300 106,300 21,900 0 $278,900 $246,000 113,500 46, 200 159, 700 $278,900 7,000 2,100 31,100 95,800 3,700 $ 35,000 15, 100 50, 100 66,500 116, 600 113,500 15,900 129,400 $246,000 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.00 and $4.82, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) Vaard
TRUTBOLUN LL Accounts receivable Inventories داد البال Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 36,700 101,800 4,700 150,700 139,700 106,300 106,300 21,900 0 $278,900 $246,000 $ 38,400 15,300 a. Net margin b. Return on investment 53,700 65,500 119, 200 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. C. Return on equity d. Earnings per share e. Price-earnings ratio f. 113,500 46,200 159,700 $278,900 a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) Book value per share of common stock c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) g. Times interest earned h. Working capital i. Current ratio e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.00 and $4.82, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) li. Quick (acid-test) ratio k. Accounts receivable turnover I. Inventory turnover m. Debt-to-equity ratio n. Debt-to-assets ratio f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) $ 35,000 15, 100 50, 100 66,500 116, 600 m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) 31, 100 95,800 3,700 113,500 15,900 129,400 $246,000 Year 2 % % % times times % times times Year 1 % % % times times times times %
Transcribed Image Text:TRUTBOLUN LL Accounts receivable Inventories داد البال Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 36,700 101,800 4,700 150,700 139,700 106,300 106,300 21,900 0 $278,900 $246,000 $ 38,400 15,300 a. Net margin b. Return on investment 53,700 65,500 119, 200 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. C. Return on equity d. Earnings per share e. Price-earnings ratio f. 113,500 46,200 159,700 $278,900 a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) Book value per share of common stock c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) g. Times interest earned h. Working capital i. Current ratio e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.00 and $4.82, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) li. Quick (acid-test) ratio k. Accounts receivable turnover I. Inventory turnover m. Debt-to-equity ratio n. Debt-to-assets ratio f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) $ 35,000 15, 100 50, 100 66,500 116, 600 m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) 31, 100 95,800 3,700 113,500 15,900 129,400 $246,000 Year 2 % % % times times % times times Year 1 % % % times times times times %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

Finish the question

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS