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Could you please fill in the blanks? Ch15 templates.xls Student Name: Class: Problem 15-11 1. MODERN BUILDING SUPPLY Ratios This Year Last Year Working capital Current ratio Acid-test ratio Accounts receivable turnover Average collection period Inventory turnover ratio Average sales period Debt-to-equity ratio Times interest earned 2a. MODERN BUILDING SUPPLY Common-Size Balance Sheets This Year Last Year Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities: Current liabilities Bonds payable, 12% Total liabilities Stockholders’ equity: Preferred stock, $50 par, 8% Common stock, $10 par Retained earnings Total stockholders’ equity Total liabilities and equity 2b. MODERN BUILDING SUPPLY Common-Size Income Statements This Year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Last Year Given Data P15-11: Requested loan amount $300,000 MODERN BUILDING SUPPLY Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets $90,000 650,000 1,300,000 20,000 2,060,000 1,940,000 $4,000,000 $200,000 50,000 400,000 800,000 20,000 1,470,000 1,830,000 $3,300,000 Liabilities and Stockholders’ Equity Liabilities: Current liabilities $1,100,000 Bonds payable, 12% 750,000 Total liabilities 1,850,000 Stockholders’ equity: Preferred stock, $50 par, 8% 200,000 Common stock, $10 par 500,000 Retained earnings 1,450,000 Total stockholders’ equity 2,150,000 Total liabilities and stockholders’ equity $4,000,000 $600,000 750,000 1,350,000 200,000 500,000 1,250,000 1,950,000 $3,300,000 MODERN BUILDING SUPPLY Comparative Income Statement and Reconciliation Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (40%) Net income Dividends paid: Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year Typical ratios: Current ratio Acid-test ratio Average collection period Average sale period Debt-to-equity ratio Times interest earned Return on total assets Price-earnings ratio Accounts receivable, beginning of last year Inventory, beginning of last year This Year $7,000,000 5,400,000 1,600,000 970,000 630,000 90,000 540,000 216,000 324,000 Last Year $6,000,000 4,800,000 1,200,000 710,000 490,000 90,000 400,000 160,000 240,000 16,000 108,000 124,000 200,000 1,250,000 $1,450,000 16,000 60,000 76,000 164,000 1,086,000 $1,250,000 2.5 1.2 18 days 50 days 0.75 6.0 10% 9 $350,000 $720,000 Student Name: Class: Problem 15-16 HEDRICK COMPANY Rates of Return 1a. This Year Last Year Net income Add after-tax cost of interest: Total Average total assets Return on total assets 1b. Net income Less preferred dividends Net income remaining for common Average total stockholders’ equity Less average preferred stock Average common equity Return on common equity HEDRICK COMPANY Stockholders’ Well Being 2a. Net income remaining for common Avg. number of common shares outstanding Earnings per share 2b. Dividends per share Market price per share Dividend yield ratio 2c. Dividends per share Earnings per share Dividend payout ratio 2d. Market price per share Earnings per share Price-earnings ratio 2e. Stockholders’ equity Less preferred stock Common stockholders’ equity Number of common shares Book value per share 2f. Gross margin Sales Gross margin percentage 3. HEDRICK COMPANY Ratios This Year Working capital Current ratio Acid-test ratio Average collection period Average sales period Debt-to-equity ratio Times interest earned Last Year Given Data SP15-16: Requested loan amount $1,000,000 HEDRICK COMPANY Co

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