P14-6A The
comparative statements of Beulah Company are presented below.
|
BEULAH
COMPANY
Income Statement For the Years Ended December 31 |
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|
2014
|
2013
|
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|
Net sales (all
on account)
|
$500,000
|
$420,000
|
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|
Expenses
|
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|
Cost
of goods sold
|
315,000
|
254,000
|
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|
Selling
and administrative
|
120,800
|
114,800
|
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|
Interest
expense
|
7,500
|
6,500
|
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|
Income
tax expense
|
20,000
|
15,000
|
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|
Total
expenses
|
463,300
|
390,300
|
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|
Net income
|
$ 36,700
|
$ 29,700
|
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|
BEULAH
COMPANY
Balance Sheets December 31 |
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|
Assets
|
2014
|
2013
|
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|
Current assets
|
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|
Cash
|
$ 21,000
|
$ 18,000
|
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|
Short-term
investments
|
18,000
|
15,000
|
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|
Accounts
receivable (net)
|
85,000
|
75,000
|
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|
Inventory
|
80,000
|
60,000
|
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|
Total
current assets
|
204,000
|
168,000
|
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|
Plant assets
(net)
|
423,000
|
383,000
|
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|
Total assets
|
$627,000
|
$551,000
|
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|
Liabilities and
Stockholders’ Equity
|
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|
Current
liabilities
|
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|
Accounts
payable
|
$122,000
|
$110,000
|
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|
Income
taxes payable
|
12,000
|
11,000
|
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|
Total
current liabilities
|
134,000
|
121,000
|
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|
Long-term
liabilities
|
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|
Bonds
payable
|
120,000
|
80,000
|
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|
Total
liabilities
|
254,000
|
201,000
|
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|
Stockholders’
equity
|
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|
Common
stock ($5 par)
|
150,000
|
150,000
|
||
|
Retained
earnings
|
223,000
|
200,000
|
||
|
Total
stockholders’ equity
|
373,000
|
350,000
|
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|
Total
liabilities and stockholders’ equity
|
$627,000
|
$551,000
|
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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
|
%
|
