need quick solution

P15

Save Time On Research and Writing

Hire a Pro to Write You a 100% Plagiarism-Free Paper.

Get My Paper

–

11

,000

0,000

60,000

Correct!

$

$ 1,470,000

current liabilities $ 1,100,000

to 1

Correct! Correct!

,000

current liabilities $ 1,100,000 $ 600,000

to 1

to 1

Correct! Correct!

turnover

3

times

days

Correct!

ratio

Try again! 0

to 1

to 1

Correct! Try again!

$ 90,000

times

Correct! Correct!

MODERN BUILDING SUPPLY

s

This Year Last Year

:

Inventory

current assets

, net

0 0

:

, 12%

:

, $50 par, 8%

, $10 par

0 0

MODERN BUILDING SUPPLY

s

This Year Last Year

before taxes

Net income

0 0

		Student Name:
		Class:
Problem 15-11
1.
				MODERN BUILDING SUPPLY
	Ratios
								This Year									Last Year
curret assets		$ 2,																																																		0			60		$	1,4	70,000
		current liabilities				$ 1, Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper			10				$								600,000
	Working capital	$	9	$ 870,000
																Correct!
current assets	2,060,000
	$ 600,000
					Current ratio	1.87						to 1	2.45
c,ms,ar,s.t. note	$ 740,000	$ 6,4		50
					Acid-test ratio	0.67	1.08
sales		$ 7,000,000		$ 6,000,000
A.R.	$ 525,000	$			400,000
			Accounts receivable	1	3.			times			15.0
			Average collection period	27.4						days	24.3
		Try again!
cogs	$	5,400,000	$ 4,		800,000
							Inventory	$ 1,0		50,000	$ 800,000
		Inventory turnover	5.1				6.0
	Average sales period	63.0
total liabilites	$	1,850,000	$	1,350,000
stockholders equity	$	2,150,000	$	1,950,000
					Debt-to-equity ratio	0.860	0.692
earnings	$	630,000	$	4		90,000
interest expense			$ 90,000
				Times interest earned		7.0	5.4
	2a.
Common-Size		Balance Sheet
				Current assets
					Cash	55.0%
		Marketable securities
				Accounts receivable, net
		Prepaid expenses
		Total
			Plant and equipment
							Total assets
			Liabilities
							Current liabilities
			Bonds payable
							Total liabilities
				Stockholders’ equity
		Preferred stock
			Common stock
					Retained earnings
					Total stockholders’ equity
		Total liabilities and equity
	2b.
Common-Size		Income Statement
				Sales
					Cost of goods sold
							Gross margin
				Selling and administrative expenses
					Net operating income
							Interest expense
								Net income
	Income taxes

Enter appropriate data in yellow cells. Your answers for each of the ratios will be verified.
Enter appropriate data in yellow cells.
Enter appropriate data in yellow cells.

Given P15-11

MODERN BUILDING SUPPLY

This Year Last Year

Cash $ 90,000

Marketable securities – 50,000
Accounts receivable, net

400,000

Inventory

800,000

Prepaid expenses

20,000

2,060,000 1,470,000

Total assets

Liabilities:

Current liabilities $ 1,100,000 $ 600,000
Bonds payable, 12%

750,000

Total liabilities 1,850,000 1,350,000
Preferred stock, $50 par, 8% 200,000 200,000
Common stock, $10 par

500,000

Retained earnings

Total stockholders’ equity 2,150,000 1,950,000

$ 4,000,000 $ 3,300,000

MODERN BUILDING SUPPLY

This Year Last Year

Sales $ 7,000,000 $ 6,000,000
Cost of goods sold 5,400,000

Gross margin

Selling and administrative expenses

Net operating income 630,000 490,000
Interest expense 90,000 90,000

400,000

Net income

16,000 16,000

60,000

200,000

1,250,000

Current ratio

Acid-test ratio

Average collection period

days

50 days

Debt-to-equity ratio

Times interest earned 6.0

9

Given Data P15-11:
	Requested loan amount	$ 300,000
	Comparative Balance Sheet
	Assets
	Current assets:
$			200,000
650,000
	1,300,000
	20,000
		Total current assets
Plant and equipment, net	1,940,000	1,830,000
	$ 4,000,000		$	3,300,000
	Liabilities and Stockholders’ Equity
	750,000
		Stockholders’ equity:
	500,000
1,450,000		1,250,000
	Total liabilities and stockholders’ equity
	Comparative Income Statement and Reconciliation
4,800,000
1,600,000		1,200,000
970,000	710,000
				Net income before taxes	540,000
	Income taxes (40%)	2		16,000		160,000
324,000		240,000
	Dividends paid:
Preferred dividends
Common dividends	108,000
	Total dividends paid	124,000	76,000
	Net income retained	164,000
	Retained earnings, beginning of year	1,086,000
	Retained earnings, end of year	$ 1,450,000	$ 1,250,000
	Typical ratios:
2.5
	1.2
18
	Average sale period
0.75
		Return on total assets	10%
		Price-earnings ratio
	Accounts receivable, beginning of last year	$ 350,000
	Inventory, beginning of last year	$ 720,000

P15-16

Student Name:
Class:

This Year Last Year

Net income

70,000

Total

4,000

Return on total assets

0 0

Net income $

$ 168,000

48,000

Correct! Correct!

600,000 600,000

0 0
HEDRICK COMPANY

2a.

Net income remaining for common $ 600,000

0 0
2b.

0 0

Dividends per share
Earnings per share

0 0

Market price per share

.00

Earnings per share

Price-earnings ratio

0 0

Stockholders’ equity

600,000 600,000

50,000 50,000

Correct! Correct!

Gross margin

Sales

0 0

3.

HEDRICK COMPANY
Ratios
This Year Last Year

Working capital
0 0
Current ratio

0 0

Acid-test ratio

0 0

Average collection period

0 0

Average sales period

0 0

Debt-to-equity ratio

0 0

Times interest earned

0 0

Problem 15-16
				HEDRICK COMPANY
Rates of Return
1a.
	$ 2	80,000		$	168,000
Add after-tax cost of interest:			84,000
	$ 36	$ 238,000
Average total assets			$ 4,960,000
1b.
280,000
Less preferred dividends				48,000
	Net income remaining for common	$ 232,000	$			120,000
Average total stockholders’ equity	$ 3,120,000	$ 3,028,000
Less average preferred stock
Average common equity	$ 2,		520,000	$ 2,428,000
Return on common equity
Stockholders’ Well Being
$		440,000
	Avg. number of common shares outstanding
				Earnings per share
	Dividends per share
	Market price per share
Dividend yield ratio
2c.
Dividend payout ratio
2d.
	$ 20	$ 36.00
2e.
$	3,200,000	$	3,040,000
Less preferred stock
Common stockholders’ equity	$	2,600,000	$ 2,440,000
Number of common shares
Book value per share	$ 52.00	$ 48.80
2f.
	$ 5,250,000		$ 4,160,000
Gross margin percentage

Enter appropriate data in yellow cells. Your answers for each of the ratios will be verified.
Enter appropriate data in yellow cells. Your answers for each of the sections will be verified.
Enter appropriate data in yellow cells. Your answers for each of the ratios will be verified.
Enter appropriate data in yellow cells. Your answers for each of the ratios will be verified.

Given SP15-16

Requested loan amount

HEDRICK COMPANY
Comparative Balance Sheet
This Year Last Year
Assets
Current assets:

Cash

Marketable securities – 100,000
Accounts receivable, net

600,000

Inventory 1,300,000 800,000

Prepaid expenses 80,000 60,000
Total current assets 2,600,000

Plant and equipment, net

Total assets

$ 4,960,000

Liabilities and Stockholders’ Equity
Liabilities:

Current liabilities

1,200,000 1,000,000

Total liabilities

Stockholders’ equity:

600,000 600,000

2,000,000

Retained earnings 600,000 440,000
Total stockholders’ equity 3,200,000 3,040,000
Total liabilities and stockholders’ equity $ 5,700,000 $ 4,960,000

HEDRICK COMPANY
Comparative Income Statement and Reconciliation
This Year Last Year

$ 5,250,000 $ 4,160,000

Cost of goods sold

3,300,000

Gross margin

Selling and administrative expenses

520,000

Net operating income 520,000

Interest expense 120,000 100,000
Net income before taxes 400,000 240,000

)

120,000

Net income 280,000 168,000

Dividends paid:

Preferred stock 48,000 48,000
Common stock 72,000

Total dividends paid 120,000 84,000
Net income retained 160,000 84,000
Retained earnings, beginning of year 440,000

Retained earnings, end of year $ 600,000

30%

$ 20

$ 36

Typical ratios:

Current ratio

Acid-test ratio 1.2

Average collection period

days

Average sale period 60 days
Debt-to-equity ratio

Price-earnings ratio 10
Accounts receivable, beginning of last year

Inventory, beginning of last year

Given Data SP15-16:
$	1,000,000
$320,000	$420,000
900,000
1,980,000
3,100,000	2,980,000
	$ 5,700,000
$ 1,300,000	$ 920,000
		Bonds payable, 10%
2,500,000	1,920,000
Preferred stock, 8%, $30 par value
Common stock, $40 par value		2,000,000
Sales (all on account)
4,200,000
1,050,000	860,000
530,000
340,000
Income taxes (	30%		72,000
36,000
356,000
$ 440,000
Tax rate
Percentage increase in sales	25%
Common stock price, last year
Common stock price, this year
2.3
31
Return on assets	9.5%
0.65
Times interest earned ratio	5.7
Total assets beginning last year	$ 4,320,000
Stockholders’ equity beginning last year	$ 3,016,000
$ 520,000
$ 640,000

P15-19

Student Name:
Class:
Interest expense

Times interest earned

Correct!

Earnings before interest & taxes $ 315,000
Interest expense $ 45,000

Net income before taxes

Correct!

Net income

Correct!

Accounts receivable turnover 15.0
0
Current liabilities

Acid-test ratio

Cash

0

Current assets

Current liabilities $ 250,000

Current ratio

Inventory

0

Inventory turnover 6.0
Cost of goods sold

0

Gross margin

0
Gross margin

Net operating income

0

Interest expense
Bonds payable

0

Current liabilities

Bonds payable

Total liabilities

0

Avg. number of common shares outstanding
Earnings per share

0
Total liabilities

Debt-to-equity ratio
Stockholders’ equity

0

Total stockholders’ equity
Common stock
Retained earnings

0
Total liabilities
Stockholders’ equity

Total assets

0
Total assets
Current assets

0
TANNER COMPANY

Income Statement
Sales

Cost of goods sold
Gross margin

Selling and administrative expenses

Net operating income
Interest expense

Net income before taxes
Income taxes
Net income

0
TANNER COMPANY

Balance Sheet
March 31
Current assets:

Cash

Accounts receivable, net

Inventory

Total current assets
Plant and equipment

Total assets
Current liabilities

Bonds payable, 10%

Total liabilities

Stockholders’ equity:

Retained earnings
Total stockholders’ equity

Total liabilities and equity

0

Problem 15-19
				TANNER COMPANY
Computations
	$	45,000
7.00
	Earnings before interest & taxes		$ 315,000
$ 270,000
Income tax expense	$ 108,000
$ 162,000
Sales on account		$ 2,700,000
Average accounts receivable balance	$ 180,000
Ending accounts receivable balance
Quick assets
		$ 250,000
	1.12
	2.40
Average inventory	$ 450,000
Operating expenses
Interest rate
Net income, less preferred dividends
Total common stock
Plant & equipment
For the Year Ended	March 31
	Common stock, $2.50 par value

Enter appropriate data in yellow cells. Use your computations from above to complete the missing amounts in the financial statements.
“Net Income” and “Total liabilities and equity” will be verified.
Enter appropriate data in yellow cells. Use these computations to complete the missing amounts in the financial statements below.

Given P15-19

TANNER COMPANY
Income Statement

Sales $ 2,700,000
Cost of goods sold

Gross margin ?
Selling and administrative expenses ?
Net operating income ?
Interest expense 45,000
Net income before taxes ?
Income taxes (40%) ?
Net income ?

TANNER COMPANY
Balance Sheet

December 31

Current assets:

Cash ?
Accounts receivable, net ?
Inventory ?
Total current assets ?
Plant and equipment, net ?
Total assets ?
Liabilities
Current liabilities $ 250,000
Bonds payable, 10% ?
Total liabilities ?

Stockholders’ equity:

Common stock, $2.50 par value ?
Retained earnings ?
Total stockholders’ equity ?
Total liabilities and equity ?
Current ratio 2.40
Acid-test ratio 1.12
Accounts receivable turnover 15.0
Inventory turnover 6.0
Debt-to-equity ratio

Times interest earned 7.0
Earnings per share

Return on total assets

Accounts receivable

Inventory

Total assets

Given Data P15-19:
For the Year Ended	December 31
																		?
Selected financial ratios computed from above statements:
0.875
$4.05
14%
Selected balances at beginning of current year:
$ 160,000
$ 280,000
$ 1,200,000