Problem 14-6A The comparative statements of Beulah Company are presented below.
|
BEULAH COMPANY |
||||
|
2014 |
2013 |
|||
|
Net sales (all on account) |
$500,000 |
$420,000 |
||
|
Expenses |
||||
|
Cost of goods sold |
315,000 |
254,000 |
||
|
Selling and administrative |
120,800 |
114,800 |
||
|
Interest expense |
7,500 |
6,500 |
||
|
Income tax expense |
20,000 |
15,000 |
||
|
Total expenses |
463,300 |
390,300 |
||
|
Net income |
$ 36,700 |
$ 29,700 |
||
|
BEULAH COMPANY |
||||
|
Assets |
2014 |
2013 |
||
|
Current assets |
||||
|
Cash |
$ 21,000 |
$ 18,000 |
||
|
Short-term investments |
18,000 |
15,000 |
||
|
Accounts receivable (net) |
85,000 |
75,000 |
||
|
Inventory |
80,000 |
60,000 |
||
|
Total current assets |
204,000 |
168,000 |
||
|
Plant assets (net) |
423,000 |
383,000 |
||
|
Total assets |
$627,000 |
$551,000 |
||
|
Liabilities and Stockholders’ Equity |
||||
|
Current liabilities |
||||
|
Accounts payable |
$122,000 |
$110,000 |
||
|
Income taxes payable |
12,000 |
11,000 |
||
|
Total current liabilities |
134,000 |
121,000 |
||
|
Long-term liabilities |
||||
|
Bonds payable |
120,000 |
80,000 |
||
|
Total liabilities |
254,000 |
201,000 |
||
|
Stockholders’ equity |
||||
|
Common stock ($5 par) |
150,000 |
150,000 |
||
|
Retained earnings |
223,000 |
200,000 |
||
|
Total stockholders’ equity |
373,000 |
350,000 |
||
|
Total liabilities and stockholders’ equity |
$627,000 |
$551,000 |
||
Additional data:
The common stock recently sold at $19.50 per share.
Compute the following ratios for 2014. (Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)
|
(a) |
Current ratio |
:1 |
|
(b) |
Acid-test ratio |
:1 |
|
(c) |
Accounts receivable turnover |
times |
|
(d) |
Inventory turnover |
times |
|
(e) |
Profit margin |
% |
|
(f) |
Asset turnover |
times |
|
(g) |
Return on assets |
% |
|
(h) |
Return on common stockholders’ equity |
% |
|
(i) |
Earnings per share |
|
|
(j) |
Price-earnings ratio |
times |
|
(k) |
Payout ratio |
% |
|
(l) |
Debt to total assets |
% |
|
(m) |
Times interest earned |
times |
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