Accounting II Comparative Financial Data

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ComparativeFinancialData.xlsx
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Course Project

Comparative financial statement data of Garfield, Inc. follow:
GARFIELD INC. GARFIELD INC.
Comparative Income Statement CompararativeBalance Sheet
Years Ended December 31, 2018 and 2017 December 31 2018 and 2017
2018 2017 Assets 2018 2017 Liabilities 2018 2017
Net Sales Revenue $ 461,000 $ 424,000 Current Assets: Total Current Liabilities $ 227,000 $ 246,000
Cost of Goods Sold 241,000 211,000 Cash 99,000 98,000 Long-term Liabilities 117,000 100,000
Gross Profit 220,000 213,000 Accounts Receivable, Net 108,000 114,000 Total Liabilities 344,000 346,000
Operating expenses 137,000 135,000 Merchandise Inventory 146,000 164,000
Income from Operations 83,000 78,000 Prepaid Expenses 20,000 9,000
Interest Expense 9,000 13,000 Total Current Assets 373,000 385,000 Stockholders' Equity
Income Before Income Tax 74,000 65,000 Property, Plant, and Equip 211,000 181,000
Income Tax Expense 18,000 24,000 Total Assets $ 584,000 566,000 Preferred Stock 3% 98,000 98,000
Net Income $ 56,000 $ 41,000 Common Stockholders' Equity, no par 142,000 122,000
Total Liabilities and Stockholders' Equity $ 584,000 $ 566,000
1. Market price of Garfield's common stock: $69.36 at December 31, 2018, and $38.04 at December 31, 2017
2. Common shares outstanding 14,000 on December 31, 2018, and 12,000 on December 31, 2017 and 2016
3. All sales are on credit
Requirements:
Compute the following ratios below for Year 2018 and 2017 (round to two places)
A. Compute the Current Ratio for year 2018 A. Compute the Current Ratio for year 2017
total current assets / total current liabilities total current assets / total current liabilities
$ - 0 / $ - 0 = - 0 $ - 0 / $ - 0 = - 0
B. Compute the Cash Ratio for year 2018 B. Compute the Cash Ratio for year 2017
cash / total current liabilities cash / total current liabilities
$ - 0 / $ - 0 = - 0 $ - 0 / $ - 0 = - 0
C. Compute the Times-interest-earned ratio for year 2018 C. Compute the Times-interest-earned ratio for year 2017
net income + income tax expense + interest expense / interest expense net income + income tax expense + interest expense / interest expense
$ - 0 + $ - 0 + $ - 0 / $ - 0 = - 0 $ - 0 + $ - 0 + $ - 0 / $ - 0 = - 0
D. Compute the Inventory turnover for year 2018 D. Compute the Inventory turnover for year 2017
cost of goods sold /average merchandise inventory cost of goods sold /average merchandise inventory
$ - 0 / $ - 0 = - 0 $ - 0 / $ 183,000 = - 0
E. Compute the Gross Profit Percentage for year 2018 E. Compute the Gross Profit Percentage for year 2017
gross profit / net sales revenue gross profit / net sales revenue
$ - 0 / $ - 0 = 0.0% $ - 0 / $ - 0 = 0.0%
F. Compute the Debt to Equity Ratio for year 2018 F. Compute the Debt to Equity Ratio for year 2017
total liabilities / total equity total liabilities / total equity
$ - 0 / $ - 0 = - 0 $ - 0 / $ - 0 = - 0
G. Compute the Rate of return on common stockholders' equity for year 2018 G. Compute the Rate of return on common stockholders' equity for year 2017
net income - preferred dividends / average common stockholders' equity net income - preferred dividends / average common stockholders' equity
$ - 0 - $ - 0 / $ - 0 = 0% $ - 0 - $ - 0 / $ 105,500 = 0%
H. Compute the Earnings per share for year 2018 H. Compute the Earnings per share for year 2017
net income - preferred dividends / weighted average number of common shares outstanding net income - preferred dividends / weighted average number of common shares outstanding
$ - 0 - $ - 0 / - 0 = $ - 0 $ - 0 - $ - 0 / - 0 = $ - 0
I. Compute the Price/Earnings Ratio for year 2018 I. Compute the Price/Earnings Ratio for year 2017
market price per share of common stock / earnings per share market price per share of common stock / earnings per share
$ - 0 / $ - 0 = - 0 $ - 0 / $ - 0 = - 0