FRIZELL COMPANY Balance Sheets December 31 Assets 2014 2013 $ 70,200 $ 64,900 51
ID: 2480427 • Letter: F
Question
FRIZELL COMPANY
Balance Sheets
December 31
Assets
2014
2013
$ 70,200
$ 64,900
51,800
40,300
103,900
90,500
236,400
164,800
22,900
29,000
131,900
131,900
263,500
185,000
$880,600
$706,400
Liabilities and Stockholders’ Equity
$171,900
$107,500
68,000
51,900
41,000
41,000
249,500
171,800
207,300
207,300
142,900
126,900
$880,600
$706,400
FRIZELL COMPANY
Income Statements
For the Years Ended December 31
2014
2013
$908,200
$786,300
649,600
575,600
258,600
210,700
194,400
159,700
$ 64,200
$ 51,000
2013
2014
% Change
LIQUIDITY
2013
2014
% Change
PROFITABILITY
Situation
Ratio
2014
2015
% Change
Problem 13-4A (Part Level Submission)Explanation / Answer
Ratios 2014 2013 Percent change = (2014-2013)/2013 Current ratio = Current assets / Current liabilites Current assets = Cash+Debt Investment+AR+inventory+Prepaid Expenses Current liabilites = Notes payable+AP+Accrued liabilites Current assets 2014 = 485200 $ 485,200 $ 389,500 Current liabilites 2014 = 280900 $ 280,900 $ 200,400 Current ratio 1.73 1.94 -11.13% Accounts receivable turnover = Net credit sales / average net receivable Average net receivable = (beginning + closing) / 2 $ 97,200 $ 89,500 Net credit sales $ 908,200 $ 786,300 Accounts receivable turnover = Net credit sales / average net receivable 9.34 8.79 6.35% Inventory turnover = COGS / Average inventory Average Inventory = (beginning + closing) / 2 $ 200,600 $ 139,900 COGS $ 649,600 $ 575,600 Inventory turnover = COGS / Average inventory 3.24 4.11 -21.29% Profit margin ratio = Net income / Net sales Net income $ 64,200 $ 51,000 net sales $ 908,200 $ 786,300 Profit margin ratio = Net income / Net sales 7.07% 6.49% 8.99% Asset turnover = Net sales / Average total assets Average total assets = (beginning + closing) / 2 $ 793,500 $ 669,900 net sales $ 908,200 $ 786,300 Asset turnover = Net sales / Average total assets 1.14 1.17 -2.49% Return on assets = Net income / Average total assets Average total assets = (beginning + closing) / 2 $ 793,500 $ 669,900 Net income $ 64,200 $ 51,000 Return on assets = Net income / Average total assets 8.09% 7.61% 6.27% Earnings per share = Net income / Total shares outstanding Net income $ 64,200 $ 51,000 Total share outstanding = Common share / par value 20,730 20,730 Earnings per share = Net income / Total shares outstanding $ 3.10 $ 2.46 25.88%
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