elburg Corporation has the following financial data Required: a. What is the com
ID: 2562072 • Letter: E
Question
elburg Corporation has the following financial data Required: a. What is the company's working capital at the end of Year 2 b. What is the company's current ratio at the end of Year 2? d. What is the company's accounts receivable turnover for Year 2? Balance Sheet December 31, Yeaur 2 and Year Assets rent Year 2 Year 1 counts receivable, net entory paid expenses tal current assets nt and equipment, net tal assets S 243,00 S 180,00 120,000 110,00 123,000 106,000 41,000 513,000 663,000 460.0x 700,000 S 1,176,00 1,160,00 t. What is the company's inventory turnover for Year 2? Liabilities and Stockholders' Equity rrent liabilities: counts payable crued liabilities otes payable, short term tal current liabilities onds payabie otal liabilities ockholders' equity: ommon stock, $2 par value dditional paid-in capital etained carnings otal stockholders' equity otal liabilities & stockholders' equity $ 96,000 110,00 50,000 90,000 250,000 m. What is the company's net profit margin percentage for Year 2? n. What is the company's gross margin percentage for Year 21 q. What is thccompany's earnings per share for Year 2? 44,000 93,000 33,000 10,000 at is ihe company's booik value per siare ar he end of Year 27 160,000 50,000 473,000 683,000 160,000 50,00 440,000 650,00 the statement or answers the question. ULTIPLE CHOICE. Choose the one alternative that best completes 12) Stauffer Corporation has provided the following contribution format income statement. A 1 that the following information is within the relevant range Income Statenment S320,000 192,000 128,000 118,400 For the Year Ended December 31, Year2 ales (all on account) st of goods sold S 1,360,000 800,000 560,000 482,07 Sales (3,000 units) Variable expenses margin Fixed expenses Net operating income et operating income Interest expense Net income before taxes Income taxes (35%) Net income 21,000 56,923 19,923 The variable expense ratio is closest to: S 37,000 67% 940% D)33% A.) 60% ividends on common stock during Year 2 totaled $4,000. The market price of common stock the end of Year 2 was $5.75 per share. A-3Explanation / Answer
1.
a. Working capital Year 2 = Current assets - Current liabilities
= $513000 - $233000 = $280000
b. Current ratio Year 2 = Current assets/ Current liabilities
= $513000/ $233000 = 2.2
d. Accounts receivable turnover Year 2 = Sales/ Average accounts receivable
= $1360000/ [($123000+$120000)/2]
= $1360000/ $121500
= 11.2
f. Inventory turnover = Cost of goods sold/ Average inventory
= $800000/ [($106000+$110000)/2]
= $800000/ $108000
= 7.4
m. Net profit margin percentage = Net income/ Sales
= $37000/1360000
= 2.7%
n. Gross margin percentage = Gross margin/ Sales
= $560000/ $1360000
= 41.2%
q. Earnings per share = Net income/ No. of common stock outstanding
= $37000/ 80000
= $0.4625
u. Book value per share = Total stockholder's equity Year 2/ No. of common stock outstanding
= $683000/ 80000
= $8.5375
12.
Variable expense ratio = Variable expenses/ Sales
= $192000/ $320000
= 60%
Ans is A.
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