Financial statements for Allendale Company follow: Required Calculate the follow
ID: 2527749 • Letter: F
Question
Financial statements for Allendale Company follow:
Required
Calculate the following ratios for 2019 and 2018. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 balance sheet.
Working capital.
Current ratio. (Round your answers to 2 decimal places.)
Quick ratio. (Round your answers to 2 decimal places.)
Receivables turnover (beginning receivables at January 1, 2018, were $47,000). (Round your answers to 2 decimal places.)
Average days to collect accounts receivable. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)
Inventory turnover (beginning inventory at January 1, 2018, was $140,000). (Round your answers to 2 decimal places.)
Number of days to sell inventory. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)
Debt to assets ratio. (Round your answers to the nearest whole percent.)
Debt to equity ratio. (Round your answers to 2 decimal places.)
Number of times interest was earned. (Round your answers to 2 decimal places.)
Plant assets to long-term debt. (Round your answers to 2 decimal places.)
Net margin. (Round your answers to 2 decimal places.)
Turnover of assets. (Round your answers to 2 decimal places.)
Return on investment. (Round your answers to 2 decimal places.)
Return on equity. (Round your answers to 2 decimal places.)
Earnings per share. (Round your answers to 2 decimal places.)
Book value per share of common stock. (Round your answers to 2 decimal places.)
Price-earnings ratio (market price per share: 2018, $11.75; 2019, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.)
Dividend yield on common stock. (Round your answers to 2 decimal places.)
ALLENDALE COMPANY Balance SheetsAs of December 31 2019 2018 Assets Current assets Cash $ 40,000 $ 36,000 Marketable securities 20,000 6,000 Accounts receivable (net) 54,000 46,000 Inventories 135,000 143,000 Prepaid items 25,000 10,000 Total current assets 274,000 241,000 Investments 27,000 20,000 Plant (net) 270,000 255,000 Land 29,000 24,000 Total assets $ 600,000 $ 540,000 Liabilities and Stockholders’ Equity Liabilities Current liabilities Notes payable $ 17,000 $ 6,000 Accounts payable 113,800 100,000 Salaries payable 21,000 15,000 Total current liabilities 151,800 121,000 Noncurrent liabilities Bonds payable 100,000 100,000 Other 32,000 27,000 Total noncurrent liabilities 132,000 127,000 Total liabilities 283,800 248,000 Stockholders’ equity Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued) 80,000 80,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) 80,000 80,000 Retained earnings 156,200 132,000 Total stockholders’ equity 316,200 292,000 Total liabilities and stockholders’ equity $ 600,000 $ 540,000
Explanation / Answer
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2018 2019 1 Cash 40,000.00 36,000.00 2 Marketable securities 20,000.00 6,000.00 3 Accounts receivable (net) 54,000.00 46,000.00 4 Inventories 135,000.00 143,000.00 5 Prepaid items 25,000.00 10,000.00 6 Total current assets 274,000.00 241,000.00 7 Total Quick Assets 114,000.00 88,000.00 8 Investments 27,000.00 20,000.00 9 Plant (net) 270,000.00 255,000.00 10 Land 29,000.00 24,000.00 11 Total Non-Current assets 326,000.00 299,000.00 12 Total assets 600,000.00 540,000.00 13 Notes payable 17,000.00 6,000.00 14 Accounts payable 113,800.00 100,000.00 15 Salaries payable 21,000.00 15,000.00 16 Total current liabilities 151,800.00 121,000.00 17 Bonds payable 100,000.00 100,000.00 18 Other 32,000.00 27,000.00 19 Total noncurrent liabilities 132,000.00 127,000.00 20 Total liabilities 283,800.00 248,000.00 21 Preferred stock 80,000.00 80,000.00 22 Common stock 80,000.00 80,000.00 23 Retained earnings 156,200.00 132,000.00 24 Total stockholders’ equity 316,200.00 292,000.00 25 Total liabilities and stockholders’ equity 600,000.00 540,000.00 26 Sales (net) 230,000.00 210,000.00 27 Other revenues 8,000.00 5,000.00 28 Total revenues 238,000.00 215,000.00 29 Cost of goods sold 120,000.00 103,000.00 30 Selling, general, and administrative 55,000.00 50,000.00 31 Profit Before Interest and Tax 63,000.00 62,000.00 32 Interest expense 8,000.00 7,200.00 33 Income tax expense 23,000.00 22,000.00 34 Net earnings (net income) 32,000.00 32,800.00 35 Retained earnings, January 1 132,000.00 107,000.00 36 Less: Preferred stock dividends 3,200.00 3,200.00 37 Common stock dividends 4,600.00 4,600.00 38 Retained earnings, December 31 156,200.00 132,000.00 39 Market Price Per Share 11.75 12.50 40 No. of Equity Share 10,000.00 10,000.00 41 Current ratio (6/16) 1.81 1.99 42 Quick Ratio( 7/16) 0.75 0.73 43 Receivables turnover(26/3) 4.26 4.57 44 Average days to collect accounts receivable(365/42) 85.70 79.95 45 Inventory turnover(26/4) 1.70 1.47 46 Number of days to sell inventory(365/44) 214.24 248.55 47 Debt to assets ratio(20/12) 0.47 0.46 48 Debt to equity ratio(20/24) 0.90 0.85 49 Number of times interest was earned(31/32) 7.88 8.61 50 Plant assets to long-term debt(19/9) 0.49 0.39 51 Net margin((34-36)/26 0.13 0.14 52 Turnover of assets(26/12) 0.38 0.39 53 Return on investment((34-36)/(12-16)) 6.43% 7.06% 54 Return on equity((34-36)/(22+23)) 12% 14% 55 Earnings per share((34-36)/40) 2.88 2.96 56 Book value per share of common stock((22+23)/40) 23.62 21.20 57 Price-earnings ratio(39/55) 4.08 4.22 58 Dividend Yield(37/39) 2% 2%Related Questions
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