compute the following ratios using the Balance Sheet (Current Year) and Income Statement provided in the images below Current Ratio (in numeric format, 2 decimal places): Debt to Equity (in numeric format, 2 decimal places(): Return on Equity (stated as a percentage, 2 decimal places):

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question

compute the following ratios using the Balance Sheet (Current Year) and Income Statement provided in the images below

Current Ratio (in numeric format, 2 decimal places):

Debt to Equity (in numeric format, 2 decimal places():

Return on Equity (stated as a percentage, 2 decimal places):

Return on Assets (stated as a percentage, 2 decimal places):

 

M Celebrate Black x
Quiz: Midterm x
y! Describe the m x
The simple diff x
y! bartleby - Yaho x
b My Questions X
O Balance Sheet. X
+
O File | C:/Users/errab/Downloads/Balance%20Sheet.pdf
a
Balance Sheet.pdf
1 / 1
67%
+
BIG W CONSTRUCTION
BALANCE SHEET
Current
Last
Year
Year
ASSETS
CURRENT ASSETS
abilities, and
h or equity-
at the end of
et for a con-
ig method is
200.492
144,254
308.253
Cash
Accounts Receivable-Trade
402,854
25,365
Accounts Recelvable-Retention
Inventory
Costs and Profits in Excess
Notes Receivablo
Prepaid Expenses
21,885
Billings
32,586
15,234
12,548
, and owner's
n the bálance
s printed. For
re 2-2 comes
е 2-1. То pre-
ounts may be
single line on
ed from other
5,621
11,254
690,720
4,825
7,225
501,676
Other Current Assets
Total Current Assets
FIXED AND OTHER ASSETS
Land
Buildings
Construction Equipment
1
72,000
103,862
95,284
51,245
56,896
379,287
224,512
154,775
72,00
103,862
95,284
31,556
42,546
345,248
182,990
Trucks and Autos
he sum of the
and Profits
Current Assets
Not all com-
Office Equipment
Total Fixed Assets
Less Acc. Depreclation
Net Fixed Assets
sts
162,258
171,256
835,190
Other Assets
e construction
178,544
1,024,039
Total Assets
les, and equity
LIABILITIES
Current Llabilities
228,585
Accounts Payable-Trade
Accounts Payable-Retention
Billings In Excess of Costs and Profits
Notes Payable
325,458
(2-1)
22,546
5,218
15,514
15,648
10,521
3,564
18,254
11,562
45,250
16,658
8,254
3,002
Accrued Payables
Accrued Taxes
y lead to some
ecause it could
ickets left over
sonable chance
pany would be
nt assets, long-
Accrued Vacation
Capital Lease Payable
Warranty Reserves
Other Current Llabilities
25,438
423,907
35,648
367,213
99,073
466,286
Total Current Liabilities
153,215
577,122
Long-Term Liablities
Total Liabilities
re those assets
1ed within one
inventory, cost
i, and other as
:ies.
OWNER'S EQUITY
Capltal Stock
Retained Earnings
Current Perlod Net Income
Total Equity
Total Llablities and Equity
10,000
436,917
10,000
358,904
446,917
368,904
king accounts),
one year or less
1,024,039
835,190
FIGURE 2-2 Balance Sheet for Big W Construction
25
6:59 PM
2/26/2022
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ii.
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Transcribed Image Text:M Celebrate Black x Quiz: Midterm x y! Describe the m x The simple diff x y! bartleby - Yaho x b My Questions X O Balance Sheet. X + O File | C:/Users/errab/Downloads/Balance%20Sheet.pdf a Balance Sheet.pdf 1 / 1 67% + BIG W CONSTRUCTION BALANCE SHEET Current Last Year Year ASSETS CURRENT ASSETS abilities, and h or equity- at the end of et for a con- ig method is 200.492 144,254 308.253 Cash Accounts Receivable-Trade 402,854 25,365 Accounts Recelvable-Retention Inventory Costs and Profits in Excess Notes Receivablo Prepaid Expenses 21,885 Billings 32,586 15,234 12,548 , and owner's n the bálance s printed. For re 2-2 comes е 2-1. То pre- ounts may be single line on ed from other 5,621 11,254 690,720 4,825 7,225 501,676 Other Current Assets Total Current Assets FIXED AND OTHER ASSETS Land Buildings Construction Equipment 1 72,000 103,862 95,284 51,245 56,896 379,287 224,512 154,775 72,00 103,862 95,284 31,556 42,546 345,248 182,990 Trucks and Autos he sum of the and Profits Current Assets Not all com- Office Equipment Total Fixed Assets Less Acc. Depreclation Net Fixed Assets sts 162,258 171,256 835,190 Other Assets e construction 178,544 1,024,039 Total Assets les, and equity LIABILITIES Current Llabilities 228,585 Accounts Payable-Trade Accounts Payable-Retention Billings In Excess of Costs and Profits Notes Payable 325,458 (2-1) 22,546 5,218 15,514 15,648 10,521 3,564 18,254 11,562 45,250 16,658 8,254 3,002 Accrued Payables Accrued Taxes y lead to some ecause it could ickets left over sonable chance pany would be nt assets, long- Accrued Vacation Capital Lease Payable Warranty Reserves Other Current Llabilities 25,438 423,907 35,648 367,213 99,073 466,286 Total Current Liabilities 153,215 577,122 Long-Term Liablities Total Liabilities re those assets 1ed within one inventory, cost i, and other as :ies. OWNER'S EQUITY Capltal Stock Retained Earnings Current Perlod Net Income Total Equity Total Llablities and Equity 10,000 436,917 10,000 358,904 446,917 368,904 king accounts), one year or less 1,024,039 835,190 FIGURE 2-2 Balance Sheet for Big W Construction 25 6:59 PM 2/26/2022 .. of | Wg 川 ii. II
M Celebrate B X
y! Describe th X
Quiz: Midte x
The simple X
y! bartleby - Y × b My Questio X
O Balance She X
S Income Stat X
O File | C:/Users/errab/Downloads/Income%20Statement%20(1).pdf
a
Income Statement (1).pdf
1 / 1
67%
+
THE INCOME STATEMENT
The income statement shows a company's revenues, expenses, and the resulting
profit generated over a period of time. Income statements span a period of time
between two balance sheets and record all transactions that occur during the pe-
riod. Income statements are commonly prepared for each month and the fiscal
year. A typical income statement for a construction company using the percent-
age-of-completion accounting method is shown in Figure 2-3.
FIGURE 2-3 Income
Statement for Big W
Construction
BIG W CONSTRUCTION
INCOME STATEMENT
1
REVENUES
3,698,945 100.0%
CONSTRUCTION COSTS
Materials
712,564
19.3%
896,514 24.2%
1,452,352 39.3%
119,575
Labor
Subcontract
Equipment
3.2%
Other
5,452
0.1%
Total Construction Costs
3,186,457 86.1%
EQUIPMENT COSTS
Rent and Loase Payments
Depreciation
Repairs and Malntenance
Fuel and Lubrication
Taxes, Licenses, and Insurance
Equipment Costs Charged to Jobs
Equlpment Costs Charged to Employoos
Total Equipment Costs
35,425
32,397
21,254
29,245
1,254
119,575
1.0%
0.9%
0.6%
0.8%
0.0%
3.2%
0.0%
0.0%
GROSS PROFIT
512,488 13.9%
OVERHEAD
422,562 11.4%
NET PROFIT FROM OPERATIONS
89,926
2.4%
OTHER INCOME AND EXPENSE
21,521
0.6%
PROFIT BEFORE TAXES
111,447
3.0%
INCOME TAX
33,434
0.9%
PROFIT AFTER TAXES
78,013
2.1%
7:01 PM
2/26/2022
..
of
+
II
Transcribed Image Text:M Celebrate B X y! Describe th X Quiz: Midte x The simple X y! bartleby - Y × b My Questio X O Balance She X S Income Stat X O File | C:/Users/errab/Downloads/Income%20Statement%20(1).pdf a Income Statement (1).pdf 1 / 1 67% + THE INCOME STATEMENT The income statement shows a company's revenues, expenses, and the resulting profit generated over a period of time. Income statements span a period of time between two balance sheets and record all transactions that occur during the pe- riod. Income statements are commonly prepared for each month and the fiscal year. A typical income statement for a construction company using the percent- age-of-completion accounting method is shown in Figure 2-3. FIGURE 2-3 Income Statement for Big W Construction BIG W CONSTRUCTION INCOME STATEMENT 1 REVENUES 3,698,945 100.0% CONSTRUCTION COSTS Materials 712,564 19.3% 896,514 24.2% 1,452,352 39.3% 119,575 Labor Subcontract Equipment 3.2% Other 5,452 0.1% Total Construction Costs 3,186,457 86.1% EQUIPMENT COSTS Rent and Loase Payments Depreciation Repairs and Malntenance Fuel and Lubrication Taxes, Licenses, and Insurance Equipment Costs Charged to Jobs Equlpment Costs Charged to Employoos Total Equipment Costs 35,425 32,397 21,254 29,245 1,254 119,575 1.0% 0.9% 0.6% 0.8% 0.0% 3.2% 0.0% 0.0% GROSS PROFIT 512,488 13.9% OVERHEAD 422,562 11.4% NET PROFIT FROM OPERATIONS 89,926 2.4% OTHER INCOME AND EXPENSE 21,521 0.6% PROFIT BEFORE TAXES 111,447 3.0% INCOME TAX 33,434 0.9% PROFIT AFTER TAXES 78,013 2.1% 7:01 PM 2/26/2022 .. of + II
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