Accounting
Sweetest Honey
problem_i-16.01.xlsProblem
| Weaver Corporation's stock is selling for $16 per share. Weaver provided the following financial statements. Use these statements to prepare comprehensive ratio analysis tables similar to those illustrated in the chapter. | ||||||
| WEAVER CORPORATION | ||||||
| Comparative Balance Sheet | ||||||
| December 31, 20X3 and 20X2 | ||||||
| Assets | 20X3 | 20X2 | ||||
| Current assets | ||||||
| Cash | $ 500,000 | $ 370,000 | ||||
| Accounts receivable | 350,000 | 290,000 | ||||
| Inventories | 90,000 | 110,000 | ||||
| Total current assets | $ 940,000 | $ 770,000 | ||||
| Property, plant, & equipment | ||||||
| Land | $ 200,000 | $ 200,000 | ||||
| Building | 650,000 | 650,000 | ||||
| Equipment | 950,000 | 900,000 | ||||
| $ 1,800,000 | $ 1,750,000 | |||||
| Less: Accumulated depreciation | (365,000) | (325,000) | ||||
| Total property, plant, & equipment | $ 1,435,000 | $ 1,425,000 | ||||
| Total assets | $ 2,375,000 | $ 2,195,000 | ||||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable | $ 160,000 | $ 200,000 | ||||
| Interest payable | 40,000 | 30,000 | ||||
| Total current liabilities | $ 200,000 | $ 230,000 | ||||
| Long-term liabilities | ||||||
| Long-term note payable | 800,000 | 700,000 | ||||
| Total liabilities | $ 1,000,000 | $ 930,000 | ||||
| Stockholders' equity | ||||||
| Common stock ($0.50 par) | $ 100,000 | $ 100,000 | ||||
| Paid-in capital in excess of par | 655,000 | 655,000 | ||||
| Retained earnings | 620,000 | 510,000 | ||||
| Total stockholders' equity | $ 1,375,000 | $ 1,265,000 | ||||
| Total liabilities and equity | $ 2,375,000 | $ 2,195,000 | ||||
| WEAVER CORPORATION | ||||||
| Statement of Retained Earnings | ||||||
| For the Year Ending December 31, 20X3 | ||||||
| Beginning retained earnings, January 1 | $ 510,000 | |||||
| Plus: Net income | 160,000 | |||||
| $ 670,000 | ||||||
| Less: Dividends | 50,000 | |||||
| Ending retained earnings, December 31 | $ 620,000 | |||||
| WEAVER CORPORATION | ||||||
| Income Statement | ||||||
| For the year ending December 31, 20X3 | ||||||
| Revenues | $ 1,685,000 | |||||
| Cost of goods sold | 980,000 | |||||
| Gross profit | $ 705,000 | |||||
| Operating expenses | ||||||
| Salaries | $ 245,000 | |||||
| Interest | 65,000 | |||||
| Depreciation | 40,000 | |||||
| Other operating expenses | 155,000 | 505,000 | ||||
| Income before income taxes | $ 200,000 | |||||
| Less: Income taxes | 40,000 | |||||
| Net income | $ 160,000 |
&R&"Myriad Web Pro,Bold"&20I-16.01
I-16.01
Worksheet
| Current Ratio | 4.70 |
| Current Assets ÷ Current Liabilities | $940,000 ÷ $200,000 |
| Quick Ratio | |
| Debt to Total Assets Ratio | |
| Debt to Total Equity Ratio | |
| Times Interest Earned Ratio | |
| Accounts Receivable Turnover Ratio | |
| Inventory Turnover Ratio | |
| Net Profit on Sales | |
| Gross Profit Margin | |
| Return on Assets | |
| Return on Equity | |
| EPS | |
| P/E | |
| Dividend Rate/Yield | |
| Dividend Payout Ratio | |
| Book Value Per Share |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20I-16.01
I-16.01
