The comparative statements of Beulah Company are presented below.


Question Description:

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The comparative statements of Beulah Company are presented below. BEULAH COMPANY Income Statement For the Years Ended December 31 2013 2012 Net sales (all on account) $600,000 $520,000 Expenses Cost of goods sold 415,000 354,000 Selling and administrative 120,800 114,800 Interest expense 7,800 6,000 Income tax expense 18,000 14,000 Total expenses 561,600 488,800 Net income $ 38,400 $ 31,200 BEULAH COMPANY Balance Sheets December 31 Assets 2013 2012 Current assets Cash $ 21,000 $ 18,000 Short-term investments 18,000 15,000 Accounts receivable (net) 86,000 74,000 Inventory 90,000 70,000 Total current assets 215,000 177,000 Plant assets (net) 423,000 383,000 Total assets $638,000 $560,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $122,000 $110,000 Income taxes payable 23,000 20,000 Total current liabilities 145,000 130,000 Long-term liabilities Bonds payable 120,000 80,000 Total liabilities 265,000 210,000 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 $638,000 $560,000 Additional data: The common stock recently sold at $19.50 per share. Instructions Compute the following ratios for 2013. (a) Current. (b) Acid-test. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets. (h) Return on common stockholders’ equity. (i) Earnings per share. (j) Price-earnings. (k) Payout. (l) Debt to total assets. (m) Times interest earned.

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