Question
In: Accounting
information for Ramirez Corp. is given below: Ramirez Corp. Balance Sheet December 31, 2018 Assets Equities...
information for Ramirez Corp. is given below:
Ramirez Corp. Balance Sheet December 31, 2018
|
Assets |
Equities |
||
|
Cash |
$ 300,000 |
Accounts payable |
$ 630,000 |
|
Accounts receivable (net) |
1,950,000 |
Income taxes payable |
189,000 |
|
Inventories |
2,439,000 |
Miscellaneous accrued payables |
225,000 |
|
Bonds payable (8%, due 2020) |
1,875,000 |
||
|
Plant and equipment, net of depreciation |
1,983,000 |
||
|
Patents |
261,000 |
Preferred stock ($100 par, 6% cumulative nonparticipating) |
750,000 |
|
Other intangible assets |
75,000 |
Common stock (no par, 60,000 shares authorized, issued and outstanding) |
1,125,000 |
|
Total Assets |
7,008,000 |
Retained Earnings |
2,439,000 |
|
Treasury stock—1,500 shares of preferred |
(225,000) |
||
|
Total Equities |
7,008,000 |
Ramirez Corp. Income Statement
Year Ended December 31, 2018
|
Net sales |
$ 9,000,000 |
|
Cost of goods sold |
6,000,000 |
|
Gross profit |
3,000,000 |
|
Operating expenses (including bond interest expense) |
1,500,000 |
|
Income before income taxes |
1,500,000 |
|
Income tax |
450,000 |
|
Net income |
S 1,050,000 |
Additional information:
There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2018, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2018. Assume that preferred dividends for the current year have not been declared.
At December 31, 2018, the current ratio was
a. 2,250 / 630.
b. 6,675 / 819.
c. 4,689 / 819.
d. 4,689 / 1,044
The number of times interest was earned during 2018 was
a. 1,50 / 150.
b. 1,500 / 150.
c. 1,650 / 150.
d. 1,350 / 150.
At December 31, 2018, the book value per share of common stock was
a. $55.66.
b. $58.16.
c. $59.40.
d. $58.65.
The rate of return for 2018 based on the year-end common stockholders' equity was
a. 1,050 / 3,519.
b. 1,050 / 3,564.
c. 1,005 / 3,519.
d. 1,005 / 3,564.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Presented below is the balance sheet for HHD, Inc., at December 31, 2018. Current assets $...
Presented below is the balance sheet for HHD, Inc., at December
31, 2018.
Current assets
$
656,000
Investments
542,000
Property, plant, and
equipment
2,392,000
Intangible assets
228,000
Total assets
$
3,818,000
Current liabilities
$
456,000
Long-term liabilities
722,000
Shareholders' equity
2,640,000
Total liabilities and
shareholders' equity
$
3,818,000
The captions shown in the summarized statement above include the
following:
Current assets: cash, $164,000; accounts receivable, $214,000;
inventories, $239,000; and prepaid insurance, $39,000.
Investments: investments in common stock, short term, $104,000,...
Presented below is the balance sheet for HHD, Inc., at December 31, 2018. Current assets $...
Presented below is the balance sheet for HHD, Inc., at December
31, 2018.
Current assets
$
656,000
Investments
542,000
Property, plant, and
equipment
2,392,000
Intangible assets
228,000
Total assets
$
3,818,000
Current liabilities
$
456,000
Long-term liabilities
722,000
Shareholders' equity
2,640,000
Total liabilities and
shareholders' equity
$
3,818,000
The captions shown in the summarized statement above include the
following:
Current assets: cash, $164,000; accounts receivable, $214,000;
inventories, $239,000; and prepaid insurance, $39,000.
Investments: investments in common stock, short term, $104,000,...
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Allowance for doubtful accounts
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$652,400
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During 2022, the following transactions occurred.
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Accounts payable
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Accumulated depreciation—buildings
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ABC Corp. Balance Sheet As of December 31, 2018 Assets Liability Cash $6,000 Accounts Payable $3,000...
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Assets
Liability
Cash
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Accounts Payable
$3,000
Accounts Receivable
$4,000
Stockholders' Equity
Common Stock
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Retained Earnings
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1. On January 1st, 2019, ABC Corp bought an equipment for
$2,000. The equipment has a useful life of 5 years and has a
salvage value of $500. The company uses double-declining
depreciation method.
2. On March 1 st, 2019, ABC Corp received $2,400...
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ABC Corp. Balance Sheet As of December 31,
2018
Assets
Liability
Cash
$6,000
Accounts Payable
$3,000
Accounts Receivable
$4,000
Stockholders' Equity
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$3,000
Retained Earnings
$4,000
Total Liability and Stockholders' Equity
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On January 1st, 2019, ABC Corp bought an equipment
for $2,000. The equipment has a useful life of 5 years and has a
salvage value of $500.
On May 1st, 2018, ABC Corp received $1,200 cash for
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The Traverse Recreation Company's balance sheet as of December 31, 2019 is given below: Assets Current...
The Traverse Recreation Company's balance sheet as of December 31,
2019 is given below:
Assets
Current Assets:
Cash
$
46,200
Accounts Receivable (net)
260,000
Raw Materials Inventory (4,500 yards)
11,250
Finished Goods Inventory (1,500 units)
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Accumulated Depreciation
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608,000
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$ 957,700
Liabilities and Stockholder's Equity
Current Liabilities:
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