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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