The financial statements of ABC Co. appear below:
rubyCpaMbaThe financial statements of ABC Co. appear below:
ABC Co.
Comparative Balance Sheet
December 31, 2014
ASSETS 2014 2013
Cash $25,000 $40,000
Marketable Securities 20,000 60,000
Accounts Receivable (net) 40,000 30,000
Inventory 150,000 170,000
Property, Plant and Equipment (net) 170,000 200,000
Total assets $405,000 $500,000
Liabilities and Stockholders’ equity
Accounts Payable $25,000 $30,000
Short Term Notes Payable 40,000 90,000
Bonds Payable 75,000 160,000
Common Stock 175,000 145,000
Retained Earnings 90,000 75,000
Total Liabilities and Stockholders’ Equity$405,000 $500,000
ABC Co.
Income Statement
For the Year Ended December 31, 2014
Net Sales $360,000
Cost of Goods Sold 184,000
Gross Profit 176,000
Expenses
Interest Expense 21,000
Selling Expense 30,000
Administrative Expense20,000
Total Expenses 71,000
Income before income taxes 105,000
Income tax expense 30,000
Net income $75,000
Additional information:
a. Cash dividends of $50,000 were declared and paid in 2014.
b. Weighted average number of shares of common stock outstanding during 2014 was 62,000 shares
c. Market value of common stock on December 31, 2014 was $15 per share.
d. Net cash provided by operating activities for 2014 was $65,000
Required:
Using the financial statements and additional information, compute the following ratios for ABC Co. for 2014.
1. Current ratio
2. Return on common stockholders equity
3. Price earnings ratio
4. Inventory turnover ratio
5. Receivables turnover
6. Times interest earned
7. Profit margin ratio
8. Average days in inventory
9. Payout ratio
10. Return on assets
12 years ago
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abc_co__financial_ratios.xlsx
