Question
In: Accounting
Following is the balance sheet of Munoz Company for Year 3: MUNOZ COMPANY Balance sheet Assets...
Following is the balance sheet of Munoz Company for Year
3:
| MUNOZ COMPANY Balance sheet |
|||
| Assets | |||
| Cash | $ | 15,200 | |
| Marketable securities | 7,580 | ||
| Accounts receivable | 13,400 | ||
| Inventory | 11,200 | ||
| Property and equipment | 169,500 | ||
| Accumulated depreciation | (12,200 | ) | |
| Total assets | $ | 204,680 | |
| Liabilities and Stockholders’ Equity | |||
| Accounts payable | $ | 8,690 | |
| Current notes payable | 3,320 | ||
| Mortgage payable | 4,550 | ||
| Bonds payable | 21,240 | ||
| Common stock | 114,400 | ||
| Retained earnings | 52,480 | ||
| Total liabilities and stockholders’ equity | $ | 204,680 | |
The average number of common stock shares outstanding during Year 3
was 860 shares. Net income for the year was $15,000.
Required
Compute each of the following: (Round your answer to 2
decimal places. For percentages, 0.2345 should be entered as
23.45.)
| a | current ratio | _____________ | |
| b | earnings per share | _____________ | per share |
| c | quick (acid- test) ratio | _____________ | |
| d | Return on investment | _____________ | % |
| e | return on equity | _____________ | % |
| f | debt to equity ratio | _____________ | |
Solutions
Expert Solution
| S no. | Ratio | Formula | |
| (a) | Current ratio | Current assets/Current liabilities |
47,380/12,010 =3.95:1 |
| (b) | Earning per share | Net income/Average outstanding shares |
15,000/860 = $17.44 |
| (c) | Acid test ratio | Quick assets/Current liabilities |
36,180/12,010 = 3.01:1 |
| (d) | Return on Investment | Net income/Cost of Investment |
15,000/164,880*100 =9.10 % |
| (e) | Return on equity | Net income/Shareholders' equity |
15,000/166,880*100 = 8.99% |
| (f) | Debt to equity ratio | Total liabilities/Total Equity |
37,800/166,880 = 0.23:1 |
(1)Current assets:
| Cash | $15,200 |
| Marketable securities | 7,580 |
| Account receivable | 13,400 |
| Inventory | 11,200 |
| Total current assets | $47,380 |
(2) Quick assets = Current assets - Inventory
Quick assets = $47,380 - $11,200
Quick assets = $36,180
(3) Shareholders' Equity = Common stock + Retained earning
= $114,400+52,480
= $166,880
(4) Total liabilities = Short term debt+Long term debt
= 8,690+3,320+4,550+21,240
= 37,800
(5)Current liabilities:
| Account payable | $8,690 |
| Current notes payable | 3,320 |
| Total current liabilities | $12,010 |
(6) Investment = Property and Equipment(Net) + Marketable securities
= $157,300 + $7,580
= $164,880
Property and Equipment (Net), (169,500 - 12,200) = $157,300
Marketable securities = $7,580
Note:
- Marketable securities is an investment
- Mortgage payable and bond payable has been considered as long term Liabilities
Thank you :)
ekkarill92 answered 2 years agoRelated Solutions
Following is the balance sheet of Fanning Company for Year 3: FANNING COMPANY Balance sheet Assets...
Following is the balance sheet of Fanning Company for Year
3:
FANNING COMPANY
Balance sheet
Assets
Cash
$
14,650
Marketable securities
8,380
Accounts receivable
12,620
Inventory
11,500
Property and equipment
167,000
Accumulated depreciation
(12,600
)
Total assets
$
201,550
Liabilities and Stockholders’ Equity
Accounts payable
$
8,420
Current notes payable
3,040
Mortgage payable
4,300
Bonds payable
21,600
Common stock
113,700
Retained earnings
50,490
Total liabilities and stockholders’ equity
$
201,550
The average number of common stock shares outstanding during Year...
Following is the balance sheet of Gibson Company for Year 3: GIBSON COMPANY Balance sheet Assets...
Following is the balance sheet of Gibson Company for Year
3:
GIBSON COMPANY
Balance sheet
Assets
Cash
$
15,100
Marketable securities
8,300
Accounts receivable
12,680
Inventory
10,800
Property and equipment
172,500
Accumulated depreciation
(12,800
)
Total assets
$
206,580
Liabilities and Stockholders’ Equity
Accounts payable
$
8,810
Current notes payable
3,080
Mortgage payable
4,050
Bonds payable
21,660
Common stock
113,200
Retained earnings
55,780
Total liabilities and stockholders’ equity
$
206,580
The average number of common stock shares outstanding during Year...
Following is the balance sheet of Duluth Company for 2018. DULUTH COMPANY Balance sheet Assets Cash...
Following is the balance sheet of Duluth Company for 2018.
DULUTH COMPANY
Balance sheet
Assets
Cash
$
36,000
Marketable securities
24,000
Accounts receivable
50,000
Inventory
44,000
Property and equipment
320,000
Accumulated depreciation
(74,000
)
Total assets
$
400,000
Liabilities and
Stockholders’ Equity
Accounts payable
$
23,000
Current notes payable
7,000
Mortgage payable
8,000
Bonds payable
43,000
Common stock
200,000
Retained earnings
119,000
Total liabilities and
stockholders’ equity
$
400,000
The average number of common stock shares outstanding during
2018 was...
3. Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) Assets...
3. Megalopolis Bank has the following balance sheet and income
statement.
Balance Sheet (in millions)
Assets | Liabilities and Equity
Cash and due from banks $ 9,000 | Demand deposits $ 19,000
Investment securities 23,000 | NOW accounts 89,000
Repurchase agreements 42,000 | Retail CDs 28,000
Loans 90,000 | Debentures 19,000
Fixed assets 15,000 | Total liabilities $155,000
Other assets 4,000 | Common stock 12,000
Total assets $183,000 | Paid-in capital 4,000
| Retained earnings 12,000
| Total liabilities and...
Assume a bank with the following balance sheet at the end of the financial year. Assets...
Assume a bank with the following balance sheet at the end of the
financial year.
Assets Amount Avg Duration (in years) Liabilities Amount Avg
Duration (in years)
Reserves $100 0 Deposits $2000 1.5
T-notes $350 3 L T Debt $1000 15
Loans $1725 6 Equity $500 0
Mortgages $1325 12
Calculate the duration of assets and liabilities and the
duration gap.
Assume a bank with the following balance sheet at the end of the financial year. Assets...
Assume a bank with the following balance sheet at the end of the
financial year.
Assets Amount Avg Duration (in years) Liabilities Amount Avg
Duration (in years)
Reserves $100 0 Deposits $2000 1.5
T-notes $350 3 L T Debt $1000 15
Loans $1725 6 Equity $500 0
Mortgages $1325 12
Calculate the duration of assets and liabilities and the
duration gap.
Highlands Company’s balance sheet shows the following: Highlands Company Balance Sheet August 31 Assets Cash.... $...
Highlands Company’s balance sheet shows the following:
Highlands Company
Balance Sheet
August 31
Assets
Cash.... $ 7,000
Accounts receivable ... 54,000
Inventory ...... 30,000
Buildings and equipment, net of depreciation .... 207,000
Total assets ... $298,000
Liabilities and Stockholders’ Equity
Accounts payable ..... $ 61,000
Note payable...... 14,500
Common stock.......... 180,000
Retained earnings ......... 42,500
Total liabilities and stockholders’ equity..............
$298,000
The company is preparing a budget for September and its
accounting records show the following:
a. The September’s sales...
Complete the following Balance Sheet ASSETS Current Assets Cash
Complete the following Balance
Sheet
ASSETS
Current
Assets
Cash
$ 250,000
Accounts
Receivable
($_________
less allowance for Doubtful
Accounts)
$1,320,000
Inventory
$1,410,000
Total Current
Assets
$_________
Land
$_________
Plant &
Equipment ($2,800,000 less
Accumulated Depreciation
________)
$2,110,000
TOTAL
ASSETS
$5,390,000
LIABILITIES AND
STOCKHOLDERS EQUITY
Current
Liabilities
Accounts
Payable
$ 620,000
Notes
Payable to
banks
$ 130,000
Accrued
Wages
$________
Total...
14-15 Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 980,000...
14-15
Lydex Company
Comparative Balance Sheet
This Year
Last Year
Assets
Current assets:
Cash
$
980,000
$
1,220,000
Marketable securities
0
300,000
Accounts receivable, net
2,780,000
1,880,000
Inventory
3,620,000
2,200,000
Prepaid expenses
260,000
200,000
Total current assets
7,640,000
5,800,000
Plant and equipment, net
9,560,000
9,070,000
Total assets
$
17,200,000
$
14,870,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
$
4,030,000
$
3,020,000
Note payable, 10%
3,680,000
3,080,000
Total liabilities
7,710,000
6,100,000
Stockholders' equity:
Common stock, $75 par value
7,500,000
7,500,000...
14-16 5 Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $...
14-16 5
Lydex Company
Comparative Balance Sheet
This Year
Last Year
Assets
Current assets:
Cash
$
1,020,000
$
1,320,000
Marketable securities
0
300,000
Accounts receivable, net
2,940,000
2,040,000
Inventory
3,660,000
2,100,000
Prepaid expenses
270,000
210,000
Total current assets
7,890,000
5,970,000
Plant and equipment, net
9,640,000
9,110,000
Total assets
$
17,530,000
$
15,080,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
$
4,070,000
$
2,450,000
Note payable, 10%
3,700,000
3,100,000
Total liabilities
7,770,000
5,550,000
Stockholders' equity:
Common stock, $75 par value
7,500,000...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
ADVERTISEMENT