The comparative financial statements for Chinook Company are below Income statement Sales revenue Cost of goods sold. Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock ($5 par value, 6,400 shares outstanding) Retained earnings Total liabilities and stockholders' equity Year 2 Earnings per share ratio Current ratio Quick ratio Cash ratio $ 210,000 117,000 93,000 58,000 35,000 10,000 $25,000 $ 6,000 15,000 42,000 48,000 $ 111,000 $ 17,000 46,000 32,000 16,000 $ 111,000 Year 1 $ 172,000 102,000 70,000 54,000 16,000 5,000 $ 11,000 $ 8,000 19,000 35,000 40,000 $ 102,000 $ 18,000 46,000 32,000 6,000 $102,000 Assume that the stock price per share is $38 and that dividends in the amount of $8.50 per share were paid during Year 2. Comput the following ratios: Note: Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).

The comparative financial statements for Chinook Company are below Income statement Sales revenue Cost of goods sold. Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock ($5 par value, 6,400 shares outstanding) Retained earnings Total liabilities and stockholders' equity Year 2 Earnings per share ratio Current ratio Quick ratio Cash ratio $ 210,000 117,000 93,000 58,000 35,000 10,000 $25,000 $ 6,000 15,000 42,000 48,000 $ 111,000 $ 17,000 46,000 32,000 16,000 $ 111,000 Year 1 $ 172,000 102,000 70,000 54,000 16,000 5,000 $ 11,000 $ 8,000 19,000 35,000 40,000 $ 102,000 $ 18,000 46,000 32,000 6,000 $102,000 Assume that the stock price per share is $38 and that dividends in the amount of $8.50 per share were paid during Year 2. Comput the following ratios: Note: Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).

Name: Uramilaben The comparative financial statements for Chinook Company ar
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Description: Uramilaben The comparative financial statements for Chinook Company are belowIncome statementSales revenueCost of goods soldGross profitOperating expenses and interest expensePretax incomeIncome taxNet incomeBalance sheetCashAccounts receivable (net)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 21E

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