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Q Search Sheet Insert Page Layout Formulas Data Review View Out Wrap Text Insert Delete Format Sort & Formatting as Table Styles Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Chack for Updates 45 3 Tim Kennney started and operates Kenney Home Electronics. He has several stores where he sells and repairs televisions and stereo equipment. A balance sheat, statement of equity and income 5 statement are provided Calculate the folowing raios being sure to show the formula in written form and follawed by the numeric calculation. If you show the answer without the calculation, it will be marked wrong. Please carry out to 2 decimal places and if the ratio is expressed as a percentage B you must write it so in order to earn credit. 9 Presently the market price of the stock is $10.50. Income Statement Balance Sheet 5 Revenue fron sales SSETS Current Assets Sale6 Less sales returns and allowancss Cash Accounts Recevable Merchandise I Supplies 7,800 22,000 43,000 18 Net Sales 282,110 250,800 45,000 o Cost of Goods Sold 1 Gross profit 140,380 450 T3,550 Total Current Assets 3 Operating Expenses: 5,000 15,000 136,000 30,000 136,00 Less: accumulated depreciation Store equipment Less: accumulated depreciation 24,000 Utiites expense 9 Insurance expense 14,000 2,700 6,000 12,000 2,700 6,000 22,500 Depreciation expense buildi Depreciation expense-store equipment 2 Miscellaneous expense 88,000 252,000 OTAL ASSETS 224,950 Total operating cx 75590 LIABILITIES Current liabilities s Income from operations 64,770 9,00D 3,500 Accounts payable 2,000 Sales tax payable Unearned repair fees Interest revenue 40 Total other revenues 2,275 CO0 bafore Interest and Taxes Total current liabilities Long term liabiltios 45 46 Mortgage payable Less current 4 Net Income 45 73,425 STOCKHOLDER S EQUITY ommon Stock, $2 pa 150,000 150,000 51,975 Retained Earnings Statement for the Year Ended December 31, 2013 Total Stockholder's Equ TOTAL LIABILITIES& STOCKHOLDER'S EQUITY 252,000 224,950 Retained Eanin 4 Net Income for the Year s Less dividends 6 Increase in retained carnings 7 Retained Earnings, December 31, 2013 51,975 18975 Data Ratios Horizontal Analysis Vertical Analysis + Ready 100%Explanation / Answer
Liquiidity 1 Current Ratio Current Assets 84000 285.47% Current Liabilities 29425 2 Quick Ratio Quick Assets(Cash+Account Receiviable) 10000+27500 37,500.00 127.43% Current Liabilities 29425 29,428.00 3 Working Capital Current assets-Current Liabilities (84000-29425) 54575 4 Account Receiviable Turnover Net Credit sales Not Applicalble Since figure of Credit Average Account Receiviable Sales not seprately shown Solvency 5 Inventory Turnover Cost of goods sold 141750 141,750.00 322.16% Average Inventory (45000+43000)/2 44,000.00 6 Debt to equity ratio Total Liabilities 73425 41.12% Stakeholder's equity 178575 7 Debt to Total Assets Total Debt 252000 343.21% Total Assets 73425 8 Times Interest Earned EBIT 68820 1456.51% Interest Charges 4725 Profitability 9 Return on Assets Net Profit 51975 20.63% Total Assets 252000 10 Assets Turnover Ratio Net sales 282110 282,110.00 118.30% Average Total Assets (252000+224950)/2 238,475.00 11 Return on Equity Net Income 51975 20.63% Shareholder's Equity 252000 12 Profit Margin Ratio Gross Profit 14360 5.09% Sales 282110 Market Indicators 14 Earning per share Net Income- Prefered Devidend 51975-35000 16,975.00 9.98% Weighted Average Common Stock Outstanding (178575+161600)/2 170,087.50 15 Dividend Yield Dividend per share 35000/150000 0.23 2.33% Market Value per share 10 10.00 16 Price Earning Ratio Market price per share 10 10000.00% Earning per share 0.1 17 Payout Ratio Dividend per share 35000/150000 0.23 233.33% Earning Per share 0.1 0.10
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