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P14-6A The comparative statements of Beulah Company are presented below.

Problem 14-6A The comparative statements of Beulah Company are presented below.
BEULAH COMPANY
Income Statement
For the Years Ended December 31
2014
2013
Net sales (all on account)
$500,000
$420,000
Expenses
    Cost of goods sold
315,000
254,000
    Selling and administrative
120,800
114,800
    Interest expense
7,500
6,500
    Income tax expense
20,000
15,000
      Total expenses
463,300
390,300
Net income
$ 36,700
$ 29,700

 
BEULAH COMPANY
Balance Sheets
December 31
Assets
2014
2013
Current assets
    Cash
$ 21,000
$ 18,000
    Short-term investments
18,000
15,000
    Accounts receivable (net)
85,000
75,000
    Inventory
80,000
60,000
      Total current assets
204,000
168,000
Plant assets (net)
423,000
383,000
Total assets
$627,000
$551,000
Liabilities and Stockholders’ Equity
Current liabilities
    Accounts payable
$122,000
$110,000
    Income taxes payable
12,000
11,000
      Total current liabilities
134,000
121,000
Long-term liabilities
    Bonds payable
120,000
80,000
      Total liabilities
254,000
201,000
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
$627,000
$551,000
Additional data:
The common stock recently sold at $19.50 per share.


Compute the following ratios for 2014. (Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)
(a)
Current ratio
 :1
(b)
Acid-test ratio
 :1
(c)
Accounts receivable turnover
 times
(d)
Inventory turnover
 times
(e)
Profit margin
 %
(f)
Asset turnover
 times
(g)
Return on assets
 %
(h)
Return on common stockholders’ equity
 %
(i)
Earnings per share
(j)
Price-earnings ratio
 times
(k)
Payout ratio
 %
(l)
Debt to total assets
 %
(m)
Times interest earned
 times
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TUTORIAL PREVIEW
(a) Current ratio = $204,000
                             $134,000  = 1.5:1

 
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