1,125,138 I need 1) Working capital 2) current ratio 3) quick ratio 4) accounts

Question

                 1,125,138

I need

1) Working capital

2) current ratio

3) quick ratio

4) accounts receivable turnover

5) number of days' sales in receivables

6) inventory turnover

7) number of days' sales in inventory

8) liabilities to stockholders' equity

9) net sales to assets

10) rate earned on total assets

11) rated earned on stockholders' equity

12) rate earned on common stockholders' equity

13) earnings per share on common stock

Fort Myers General Merchandise Co. Chart of Accounts and balances as of 12/31/2015 Selected Balances provided as of 12/31/2014 Balances Selected Balances Acct No. Description 12/31/2015 12/31/2014 1100 Cash 84,500                      125,225 1120 Accounts Receivable 247,450                      253,975 1150 Merchandise Inventory 550,000                      475,000 1160 Prepaid Insurance 4,800 1170 Store Supplies 4,000 1230 Store Equipment 569,500 1240 Accumulated Depreciation—Store Equipment 70,700 2100 Accounts Payable 63,150 2110 Salaries Payable 13,600 3100 Common Stock (10,000 shares issued, $25 Par) 250,000                      250,000 3110 Capital in Excess of Par Value 100,000                      100,000 3120 Dividends Paid 135,000 3200 Retained Earnings 335,300                      335,300 4100 Sales 5,532,350                  4,225,135 4110 Sales Returns and Allowances 113,700                        15,955 4120 Sales Discounts 61,600                        35,455 5100 Cost of Merchandise Sold 3,012,150                  2,300,422 5200 Sales Salaries Expense 727,800 5210 Advertising Expense 292,000 5220 Depreciation Expense 14,000 5230 Store Supplies Expense 9,800 5290 Miscellaneous Selling Expense 12,600 5300 Office Salaries Expense 417,700 5310 Rent Expense 88,700 5320 Insurance Expense 12,000 5390 Miscellaneous Administrative Expense 7,800 Total Assets at 12/31/2014

                 1,125,138

Explanation / Answer

Answer 1 Working Capital = Current assets - current liabilities Current assets = Cash + Accounts Receivable + Inventory + Prepaid Insurance + Stores supplies Current assets = 84500+247450+550000+4800+4000 = $890750 Current Liabilities = Accounts payable + Salaries payable Current Liabilities = 63150+13600 = $76750 Working capital = $890750 - $76750 = $814000 Answer 2 Current ratio = Current assets / current liabilities = $890750 / $76750 = 11.61 Answer 3 Quick ratio = Liquid current assets / current liabilities Liquid Current assets = Cash + accounts receivable = 84500 + 247450 = $331950 Quick ratio = $331950 / $76750 = 4.32 Answer 4 Accounts receivable turnover ratio = Net sales / Average accounts receivable Average account receivable = (247450 + 253975)/2 = 250712.50 Net sales = 5532350 - 113700 = 5418650 Accounts receivable turnover ratio = 5418650 / 250712.50 = 21.613 Answer 5 Number of days sales in receivable Net sales per day = 5418650 / 365 days = $14845.62 per day Number of days sales in receivable = Average account receivable / net sales per day Number of days sales in receivable = 250712.50/14845.62 = 16.89 days i.e.17 days Answer 6 Inventory turnover ratio = Net sales / Average Inventory = Average Inventory = (550000 + 475000)/2 = 512500 Inventory turnover ratio = 5418650 / 512500 = 10.57 Answer 7 Number of days sales in inventory = Average inventory / Net sales per day Number of days sales in inventory = 512500 / 14845.62 = 34.52 days i.e.35 days Answer 8 Liabilities to stockholders equity Liabilties = $76750 Stockholders equity = 250000 + 100000 + 335300 = $685300 Liabilities to stockholders equity = 76750 / 685300 = 0.11 Answer 9 Net sales to assets Total assets as on 31.12.15 = 84500+247450+550000+4800+4000+569500-70700 = $1389550 Total assets as on 31.12.14 = $1125138 Average assets = (1389550+1125138)/2 = $1257344 Net sales to assets ratio = Net sales / average assets = 5418650 / 1257344 = 4.31 Answer 10 Net income for 2015 is as under In $ Net sales        54,18,650 Less : expenses - Cost of merchandise sold        30,12,150 - Sales discount              61,600 - Sales salaries exp.           7,27,800 - Advertising exp.           2,92,000 - Depreciation exp.              14,000 - Store supplies exp.                 9,800 - Mise.selling exp.              12,600 - Office salaries exp.           4,17,700 - Rent exp.              88,700 - Insurance exp.              12,000 - Mise admin exp.                 7,800 Total expenses        46,56,150 Net Income           7,62,500 Rate earned on assets = (Net Income / Average assets)* 100 Rate earned on assets = (762500 / 1257344)* 100 = 60.64% Answer 11 Rate earned on stockholders equity = (Net income / stock holders equity )*100 Rate earned on stockholders equity = (762500 / 685300)*100 = 111.27% Answer 12 Rate earned on common stock holders equity = (Net Income / Common stockholders equity)*100 Rate earned on common stock holders equity= (762500 / 250000)*100 = 305% Answer 13 Earning per share on common stock = net Income / outstanding shares Earning per share on common stock = 762500 / 10000 shares = $76.25 per share

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