please write all the steps exactly. thank you. Dec. 31 Jan. 1 Current Year $31,6

Question

please write all the steps exactly.
thank you.

Dec. 31 Jan. 1 Current Year $31,60026,900 Sales $936,000 Cash Accounts receivable 252,000 216,000 Cost of goods sold Inventory Equipment (net) 173,000 78,000Gross profit on sales $421,000 129,000 2000 Operating expenses $585,600 $572,900 Operating income 332.000) $ 89,000 Interest expense and income taxes Accounts payable S135,000 $147,000 Dividends payable 18,000 14,000 90,000 (39,000) Net income Capital stock, $9 par 90,000 Retained earnings 342600321 90 $585,600 $572,900 All sales were made on account. Cash dividends declared during the year totaled $29,300. Compute the following: a Average accounts receivable turnover b Book value per share at the end of the current year c Earnings per share of capital stock d Return on assets e Return on common stockholders' equity is computed by times dividing Sb y $

Explanation / Answer

a.) Average account receivable = 252000+216000/2 = $234000

  Average account receivable turnover = Credit Sales/Average account receivable

= $936000/$234000

= 4

Note. Assume all Sales are on Credit.

b.) Closing Book Value Of Company = Capital Stock + Retained Earnings

= 90000+342600

= 432600

Number of Share = Equity Capital/Face value per Share

= 90000/9

= 10000 Share

Book Value Per Share = Total Book Value/ No. of Share

= 432600/10000

= $43.26

c.) Earning Per Share = Net Income/ Total No. Of share

= 50000/ 10000

= $5

d.) Average Total Assets = (Opening Total Assets+ Closing Total Assets) /2

= (585600+572900)/2

= $579250

Return On assets

= Earning before Interest & Taxes/ Average Total Assets

= 89000/579250

= 15.36%

e.) Average Common Stockholder equity = (Opening Stockholder fund+ Closing Stockholder Fund)/2

= (432600+ 411900)/2

= $ 422250

Return On Common Stockholders Equity= Net Income/ Average Common Stockholder Equity

= 50000/ 422250

= 11.84%

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