Problem 14-6A The comparative statements of Beulah Company are presented below.
BEULAH COMPANY Income Statement For the Years Ended December 31 |
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2014 | 2013 | |||
Net sales (all on account) | $500,000 | $420,000 | ||
Expenses | ||||
Cost of goods sold | 315,000 | 254,000 | ||
Selling and administrative | 120,800 | 114,800 | ||
Interest expense | 7,500 | 6,500 | ||
Income tax expense | 20,000 | 15,000 | ||
Total expenses | 463,300 | 390,300 | ||
Net income | $ 36,700 | $ 29,700 |
BEULAH COMPANY Balance Sheets December 31 |
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Assets | 2014 | 2013 | ||
Current assets | ||||
Cash | $ 21,000 | $ 18,000 | ||
Short-term investments | 18,000 | 15,000 | ||
Accounts receivable (net) | 85,000 | 75,000 | ||
Inventory | 80,000 | 60,000 | ||
Total current assets | 204,000 | 168,000 | ||
Plant assets (net) | 423,000 | 383,000 | ||
Total assets | $627,000 | $551,000 | ||
Liabilities and Stockholders’ Equity | ||||
Current liabilities | ||||
Accounts payable | $122,000 | $110,000 | ||
Income taxes payable | 12,000 | 11,000 | ||
Total current liabilities | 134,000 | 121,000 | ||
Long-term liabilities | ||||
Bonds payable | 120,000 | 80,000 | ||
Total liabilities | 254,000 | 201,000 | ||
Stockholders’ equity | ||||
Common stock ($5 par) | 150,000 | 150,000 | ||
Retained earnings | 223,000 | 200,000 | ||
Total stockholders’ equity | 373,000 | 350,000 | ||
Total liabilities and stockholders’ equity | $627,000 | $551,000 |
Additional data:
The common stock recently sold at $19.50 per share.
Compute the following ratios for 2014. (Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)
(a) | Current ratio | :1 |
(b) | Acid-test ratio | :1 |
(c) | Accounts receivable turnover | times |
(d) | Inventory turnover | times |
(e) | Profit margin | % |
(f) | Asset turnover | times |
(g) | Return on assets | % |
(h) | Return on common stockholders’ equity | % |
(i) | Earnings per share | |
(j) | Price-earnings ratio | times |
(k) | Payout ratio | % |
(l) | Debt to total assets | % |
(m) | Times interest earned | times |
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