Question

In: Accounting

Redard Corporation Comparative Balance Sheets June 30, 2013 and June 30 2014 Assets 2013 2014 Cash...

Redard Corporation Comparative Balance Sheets June 30, 2013 and June 30 2014 Assets 2013 2014 Cash 50,000 164,800 Accounts Receivable 230,000 195,200 Inventory 420,000 320,000 Prepaid Expenses 6,000 5,000 Furniture 144,000 148,000 Accumulated Depr - Furniture (24,000) (42,000) Total Assets 826,000 791,000 Liabilities & Stockholder’s Equity Accounts Payable 200,400 143,400 Income tax payable 7,400 4,400 Notes Payable (Long term) 20,000 40,000 Bond Payable 200,000 100,000 Common Stock $10 par value 200,000 240,000 Additional paid in capital 121,440 181,440 Retained Earnings 76,760 81,760 Total Liabilities & S/E 826,000 791,000 Redard Corporation Income Statement June 30, 2014 Sales 1,609,000 Cost of Goods Sold 1,127,800 Gross Profit 481,200 Operating Expenses 349,400 Operating Income 131,800 Gain on sale of furniture 7,000 Interest expense 23,200 Income before income taxes 115,600 Income tax expense 4,600 Net Income 111,000 Additional information: 1. Paid dividends of $6,000 2. Market price – $75.00 Find the following ratios for 2014: 1. Current Ratio 2. Quick Ratio 3. Accounts Receivable Turnover 4. Days to Collect 5. Inventory Turnover 6. Days on hand 7. Payable Turnover 8. Days to pay 9. Debt to Equity Ratio 10. Number of times interest Earned 11. Profit Margin 12. Assets Turnover 13. Return on Assets 14. Return on Equity 15. Earnings per Share 16. Price/Earnings Ratio 17. Dividend Yield

Solutions

Expert Solution

Answer 1.

Current Assets = Cash + Accounts Receivable + Inventory + Prepaid Expenses
Current Assets = $164,800 + $195,200 + $320,000 + $5,000
Current Assets = $685,000

Current Liabilities = Accounts Payable + Income Tax Payable
Current Liabilities = $143,400 + $4,400
Current Liabilities = $147,800

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $685,000 / $147,800
Current Ratio = 4.63

Answer 2.

Quick Assets = Cash + Accounts Receivable
Quick Assets = $164,800 + $195,200
Quick Assets = $360,000

Quick Ratio = Quick Assets / Current Liabilities
Quick Ratio = $360,000 / $195,200
Quick Ratio = 1.84

Answer 3.

Average Accounts Receivable = ($230,000 + $195,200) / 2
Average Accounts Receivable = $212,600

Accounts Receivable Turnover = Sales / Average Accounts Receivable
Accounts Receivable Turnover = $1,609,000 / $212,600
Accounts Receivable Turnover = 7.57 times

Answer 4.

Days to Collect = 365 / Accounts Receivable Turnover
Days to Collect = 365 / 7.57
Days to Collect = 48.22 days

Answer 5.

Average Inventory = ($420,000 + $320,000) / 2
Average Inventory = $370,000

Inventory Turnover = Cost of Goods Sold / Average Inventory
Inventory Turnover = $1,127,800 / $370,000
Inventory Turnover = 3.05 times

Answer 6.

Days on Hand = 365 / Inventory Turnover
Days on Hand = 365 / 3.05
Days on Hand = 119.67 days

ekkarill92 answered 8 months ago
Next > < Previous

Related Solutions

Redard Corporation Comparative Balance Sheets June 30, 2013 and June 30 2014 Assets 2013 2014 Cash...
Redard Corporation Comparative Balance Sheets June 30, 2013 and June 30 2014 Assets 2013 2014 Cash 50,000 164,800 Accounts Receivable 230,000 195,200 Inventory 420,000 320,000 Prepaid Expenses 6,000 5,000 Furniture 144,000 148,000 Accumulated Depr - Furniture (24,000) (42,000) Total Assets 826,000 791,000 Liabilities & Stockholder’s Equity Accounts Payable 200,400 143,400 Income tax payable 7,400 4,400 Notes Payable (Long term) 20,000 40,000 Bond Payable 200,000 100,000 Common Stock $10 par value 200,000 240,000 Additional paid in capital 121,440 181,440 Retained Earnings...
MONTGOMERY INC. Comparative Balance Sheets December 31, 2014 and 2013 2014 2013   Assets   Cash $ 30,400...
MONTGOMERY INC. Comparative Balance Sheets December 31, 2014 and 2013 2014 2013   Assets   Cash $ 30,400 $ 30,550   Accounts receivable, net 10,050 12,150   Inventory 90,100 70,150   Equipment 49,900 41,500   Accum. depreciation—Equipment (22,500 ) (15,300 )   Total assets $ 157,950 $ 139,050   Liabilities and Equity   Accounts payable $ 23,900 $ 25,400   Salaries payable 500 600   Common stock, no par value 110,000 100,000   Retained earnings 23,550 13,050   Total liabilities and equity $ 157,950 $ 139,050 MONTGOMERY INC. Income Statement For Year Ended...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 92,500...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 92,500 $ 69,000 Accounts receivable, net 102,500 76,000 Inventory 88,800 124,000 Prepaid expenses 6,900 10,400 Total current assets 290,700 279,400 Equipment 149,000 140,000 Accum. depreciation—Equipment (39,500 ) (21,500 ) Total assets $ 400,200 $ 397,900 Liabilities and Equity Accounts payable $ 50,000 $ 67,500 Wages payable 8,500 20,000 Income taxes payable 5,900 8,800 Total current liabilities 64,400 96,300 Notes payable (long term) 55,000 85,000 Total...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 92,500...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 92,500 $ 69,000 Accounts receivable, net 102,500 76,000 Inventory 88,800 124,000 Prepaid expenses 6,900 10,400 Total current assets 290,700 279,400 Equipment 149,000 140,000 Accum. depreciation—Equipment (39,500 ) (21,500 ) Total assets $ 400,200 $ 397,900 Liabilities and Equity Accounts payable $ 50,000 $ 67,500 Wages payable 8,500 20,000 Income taxes payable 5,900 8,800 Total current liabilities 64,400 96,300 Notes payable (long term) 55,000 85,000 Total...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 93,100...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 93,100 $ 68,000 Accounts receivable, net 101,000 75,000 Inventory 87,800 122,500 Prepaid expenses 6,800 10,200 Total current assets 288,700 275,700 Equipment 148,000 139,000 Accum. depreciation—Equipment (39,000 ) (21,000 ) Total assets $ 397,700 $ 393,700 Liabilities and Equity Accounts payable $ 49,000 $ 66,000 Wages payable 8,400 19,800 Income taxes payable 5,800 8,600 Total current liabilities 63,200 94,400 Notes payable (long term) 54,000 84,000 Total...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 97,900...
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 97,900 $ 60,000 Accounts receivable, net 89,000 67,000 Inventory 79,800 110,500 Prepaid expenses 6,000 8,600 Total current assets 272,700 246,100 Equipment 140,000 131,000 Accum. depreciation—Equipment (35,000 ) (17,000 ) Total assets $ 377,700 $ 360,100 Liabilities and Equity Accounts payable $ 41,000 $ 54,000 Wages payable 7,600 18,200 Income taxes payable 5,000 7,000 Total current liabilities 53,600 79,200 Notes payable (long term) 46,000 76,000 Total...
The 2013 and 2014 balance sheets for Ottoman Manufacturing Company appear below: 2013 2014 Current Assets...
The 2013 and 2014 balance sheets for Ottoman Manufacturing Company appear below: 2013 2014 Current Assets    Cash $16,860 $14,790    Accounts Receivable, net 18,150 20,210    Inventory 28,620 28,180 Total Current Assets 63,630 63,180 Plant & Equipment, net 55,890 43,760 Total Assets 119,520 106,940 Current Liabilities 18,140 31,730 Noncurrent Liabilities 62,040 40,800 Total Liabilities 80,180 72,530 Stockholders’ Equity    Common Stock 2,040 2,040    Additional Paid-In Capital 3,730 3,730    Retained Earnings 33,570 28,640 Total Stockholders’ Equity 39,340 34,410 Total liabilities and Stockholders’ Equity $119,520...
Keeper Corporation’s income statement for the year ended June 30, 2014, and its comparative balance sheets...
Keeper Corporation’s income statement for the year ended June 30, 2014, and its comparative balance sheets for June 30, 2014 and 2013 follow. Keeper Corporation Income Statement For the Year Ended June 30, 2014 Sales $ 234,000 Cost of goods sold 156,000 Gross margin $ 78,000 Operating expenses 45,000 Operating income $ 33,000 Interest expense 2,800 Income before income taxes $ 30,200 Income taxes expense 12,300 Net income $ 17,900 Keeper Corporation Comparative Balance Sheets June 30, 2014 and 2013...
The balance sheets of Dolan Company, for December 31, 2014 and 2013, are as follows: 2014...
The balance sheets of Dolan Company, for December 31, 2014 and 2013, are as follows: 2014 2013 Cash $  68,000 $  42,500 Accounts receivable (net) 61,000 70,200 Inventories 121,000 105,000 Investments ..... 100,000 Equipment 515,000 425,000 Accumulated depreciation-equipment (153,000) (175,000) $612,000 $567,700 Accounts payable $  59,750 $  47,250 Bonds payable, due 2010 ..... 75,000 Common stock, $20 par 375,000 325,000 Premium on common stock 50,000 25,000 Retained earnings   127,250     95,450 $612,000 $567,700 Additional information: (a) Net income, $71,800. (b) Depreciation reported on income statement,...
WALLIS CORPORATION Statement of Financial Position As at December 31, 2014 Assets 2014 2013 Cash $88,600...
WALLIS CORPORATION Statement of Financial Position As at December 31, 2014 Assets 2014 2013 Cash $88,600 $49,100 Accounts receivable 85,000 59,400 Prepaid insurance 70,000 60,000    Total current assets 243,600 168,500 Property, equipment and vehicles 360,000 305,000 Accumulated depreciation -110,400 -105,900    Total non-current assets 249,600 199,100 Total Assets $493,200 $367,600 Liabilities and Shareholders' Equity Accounts payable $21,500 $18,600 Wages Payable 3,000 4,000    Total current liabilities 24,500 22,600 Bank loan payable 50,000 60,000    Total liabilities 74,500 82,600 Common...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT