Financial statement analysis. The condensed financial


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Financial statement analysis. The condensed financial statements of Marks Company for the years 2012-2013 are presented below: Marks Company Comparative Balance Sheets As of December 31, 2012 and 2013 2013 Cash $420,000 Receivables (net) 460,000 Inventories 380,000 Plant and equipment 1,700,000 Accumulated depreciation -260,000 $2,700,000 Accounts payable $340,000 Dividends payable -0- Bonds payable 400,000 Common stock ($10 par) 1,520,000 Retained earnings 440,000 $2,700,000 Additional data: Market value of stock at 12/31/13 is $80 per share. Marks sold 32,000 shares of common stock at par on July 1, 2013. Marks Company Condensed Income Statement For the Year Ended December 31, 2013 Sales Cost of goods sold Gross profit Administrative and selling expenses Net income Instructions Compute the following financial ratios a. Current Asset/Current Liability Current ratio at 12/31/13 b. Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities Acid test ratio at 12/31/13 c. Sales/Average Accounts Receivable Receivables turnover in 2013 d. Sales/Inventory Inventory turnover in 2013 e. Net Income/Sales Profit margin on sales in 2013 f. Net Income – Dividend on preferred stock/Average shares outstanding Earnings per share in 2013 g. Rate of return on common stock equity in 2013 h. Market Value per share/EPS Price earnings ratio at 12/31/13 i. Short-term + Long-Term Debt/Total Assets Debt to total assets at 12/31/13 j. Total Share Equity – Preferred Equity/Total Outstanding Shares Book value per share at 12/31/13 Student
posted a question · Aug 11, 2012 at 1:47am

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