WIEMERS CORPORATION Balance Sheets December 31 2014 2013 Cash $ 4,300 $ 3,700 Ac
ID: 2504430 • Letter: W
Question
WIEMERS CORPORATIONBalance Sheets
December 31 2014 2013 Cash $ 4,300 $ 3,700 Accounts receivable (net) 21,200 23,400 Inventory 10,000 7,000 Land 20,000 26,000 Buildings 70,000 70,000 Accumulated depreciation WIEMERS CORPORATION
Balance Sheets
December 31 2014 2013 WIEMERS CORPORATION
Balance Sheets
December 31 2014 2013 Cash $ 4,300 $ 3,700 Accounts receivable (net) 21,200 23,400 Inventory 10,000 7,000 Land 20,000 26,000 Buildings 70,000 70,000 Accumulated depreciation WIEMERS CORPORATION Balance Sheets December 31 Wiemers's 2014 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000. Compute the following ratios for 2014. (Round answers to 2 decimal places, e.g. 1.64, or 1.64%.)
Explanation / Answer
(a) Current ratio = current assests / current liability = (4300+21200+10000)/ 12370 = 35,500/12,370 = 2.87
(b) Acid-test ratio =current assests-inventory / current liability = (35,500-10000) / 12370 = 25,500/12370 = 2.06
(c) Receivables turnover = credit sales / accounts recievables = 100,000/22,300 = 4.48
(d) Inventory turnover = cost of goods sold / Inventory = 60,000/8,500 = 7.06
(e) Profit margin = (net profit /net sales)x 100 = (15,000/100,000) x 100 = 15%
(f) Asset turnover = operating Income / Total Assests = 100,000/115,300 = 0.87
(g) Return on assets = (15,000/115,300 ) x 100 = 13.01%
(h) Return on common stockholders
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