Anne Arundel Community College BPA 202: Managerial Accounting –


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Anne Arundel Community College BPA 202: Managerial Accounting – R. Beatty Financial Statement Project – Part 2 (30 points) Name:____________________ Use the financial statements and additional information to calculate the ratios. Round your answers to two decimal places. Be sure to label your answer correctly (example, %, times, days, etc.). DO NOT LEAVE ANSWERS THAT SHOULD BE PERCENTAGES IN DECIMAL FORM!!!! (i.e. 0.5015 = 50.15%!!!!) Previous (December 31, 2013) year end balances for: Accounts receivable, net of allowance $2,000 Inventory 15,000 Total assets 453,000 Stockholders’ Equity 139,000 Market price per share for one share of common stock at Dec 31, 2014 $94.50/share Dividend per share for one share of common stock for FYE Dec 31, 2014 $1.25/share Condensed Income Statement, FYE December 31, 2014 Net Sales $416,000 Cost of Goods Sold 109,000 Total Operating Expenses (Wages Expense = $60,000) 134,000 Other Revenues & Gains 65,000 Other Expenses & Losses 4,000 Income Tax Expense (25% of IBIT) ?? Net income (Loss) ?? Condensed Balance Sheet, December 31, 2014 Cash $142,000 Accounts Payable $41,000 Marketable Securities 62,000 Accrued Expenses 20,000 Notes Receivable (S/T) 2,000 Mortgage Payable (S/T) 12,000 Accounts Receivable (net) 5,000 Unearned Revenue 19,000 Inventory 40,000 Notes Payable (L/T) 12,000 L/T Investments 7,000 Mortgage Payable (L/T) 132,000 Notes Receivable (L/T) 11,000 Common Stock (13,000 shares) 52,000 Land 50,000 Retained Earnings 169,000 Buildings (net) 138,000 Total Assets $ 457,000 Total Liabilities & Equity $457,000 RATIO CALCULATION ANSWER 1) Quick (Acid-Test) Ratio (3 points) 2) Dividend Yield (3 points) 3) Gross Profit Percentage (3 points) 4) Average Days’ Sales Uncollected (3 points) 5) Inventory Turnover (2 points) 6) Return on Total Assets (2 points) 7) Debt to Equity Ratio (2 points) 8) Earnings per Share (basic) (2 points) 9) Price-Earnings Ratio (2 points) 10) Common-size Percentage for Inventory (2 points) 11) Common-size Percentage for Wages Expense (2 points) 12) Trend Percentage for Accounts Receivable (2 points) 13) Using the liquidity ratios (and general accepted norms for current ratio and acid-test ratio), comment on the company’s financial position. [The company’s credit policy is net 15.] (2 points) daAilcama15
posted a question · Feb 08, 2016 at 1:27am

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