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The following data is given: December 31, 2021 2020 Cash $59,000 $49,500 Accounts receivable (net) 103,000 59,000 Inventories 93,000 102,000

The following data is given: December 31, 2021 2020 Cash $59,000 $49,500 Accounts receivable (net) 103,000 59,000 Inventories 93,000 102,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data is given: December 31, 2021 2020 Cash $59,000 $49,500 Accounts receivable (net) 103,000 59,000 Inventories 93,000 102,000 Plant assets (net) 381,500 320,000 Accounts payable 55,500 40,500 Salaries and wages payable 9,500 5,000 Bonds payable 71,500 68,000 8% Preferred stock, $40 par 100,000 100,000 Common stock, $10 par 120,000 90,000 Paid-in capital in excess of par 80,000 65,000 Retained earnings 200,000 162,000 Net credit sales 940,000 Cost of goods sold 750,000 Net income 82,000 Compute the following ratios: (Round answers to 2 decimal places e.g. 15.25.) (a) Acid-test ratio at 12/31/21 :1 (b) Accounts receivable turnover in 2021 times (c) Inventory turnover in 2021 times (d) Profit margin on sales in 2021 (e) Return on common stockholders' equity in 2021 % (f) Book value per share of common stock at 12/31/21
Transcribed Image Text:The following data is given: December 31, 2021 2020 Cash $59,000 $49,500 Accounts receivable (net) 103,000 59,000 Inventories 93,000 102,000 Plant assets (net) 381,500 320,000 Accounts payable 55,500 40,500 Salaries and wages payable 9,500 5,000 Bonds payable 71,500 68,000 8% Preferred stock, $40 par 100,000 100,000 Common stock, $10 par 120,000 90,000 Paid-in capital in excess of par 80,000 65,000 Retained earnings 200,000 162,000 Net credit sales 940,000 Cost of goods sold 750,000 Net income 82,000 Compute the following ratios: (Round answers to 2 decimal places e.g. 15.25.) (a) Acid-test ratio at 12/31/21 :1 (b) Accounts receivable turnover in 2021 times (c) Inventory turnover in 2021 times (d) Profit margin on sales in 2021 (e) Return on common stockholders' equity in 2021 % (f) Book value per share of common stock at 12/31/21
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