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Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Year 4 $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21,200 53,000 138,000 27,000 261,200 27,000 270,000 30,000 $588, 200 $ 31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600 $588,200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228,200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200

Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Year 4 $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21,200 53,000 138,000 27,000 261,200 27,000 270,000 30,000 $588, 200 $ 31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600 $588,200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228,200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 7MCQ
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Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities. Total liabilities Stockholders' equity. Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Year 4. $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21, 200 53,000 138,000 27,000 261, 200 27,000 270,000 30,000 $588, 200 $ 31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600 $588, 200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228, 200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200
Transcribed Image Text:Financial statements for Rundle Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities. Total liabilities Stockholders' equity. Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Revenues Sales (net) Other revenues RUNDLE COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Total revenues Expenses Cost of goods sold RUNDLE COMPANY Balance Sheets As of December 31 Selling, general, and administrative Interest expense Income tax expense Total expenses Net earnings (net income) Retained earnings, January 1 Less: Preferred stock dividends Common stock dividends Retained earnings, December 31 Year 4. $350,000 10,400 360,400 175,000 67,000 11,600 83,000 336,600 23,800 117,700 2,800 4,100 $134,600 Year 3 $330,000 7,400 337,400 139,000 62,000 10,800 82,000 293,800 43,600 81,000 2,800 4,100 $117,700 Year 4 $ 22,000 21, 200 53,000 138,000 27,000 261, 200 27,000 270,000 30,000 $588, 200 $ 31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600 $588, 200 Year 3 $ 18,000 7,200 45,000 146,000 12,000 228, 200 20,000 255,000 25,000 $528, 200 $ 13,500 120,000 15,000 148,500 100,000 22,000 122,000 270,500 70,000 70,000 117,700 257,700 $528, 200
Required Calculate the following ratios for Year 4 and Year 3. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3. were $46,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $152,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $528,200). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $528,200). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $257,700). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $12.35: Year 4. $13.70). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) a b. C. d. e. f. 9. h. i. j. k. 1. m. n. 0. p. q. r. S. Working capital Current ratio Quick ratio Receivables turnover (beginning receivables at January 1, Year 3, were $46,000) Average days to collect accounts receivable Inventory turnover (beginning inventory at January 1, Year 3, was $152,000) Number of days to sell inventory Debt-to-assets ratio Debt-to-equity ratio Number of times interest was earned Plant assets to long-term debt Net margin Turnover of assets (average total assets in Year 3 is $528,200) Return on investment (average total assets in Year 3 is $528,200) Return on equity (average stockholders' equity in Year 3 is $257,700) Earnings per share (total shares outstanding is unchanged) Book value per share of common stock Price-earnings ratio (market price per share: Year 3, $12.35, Year 4, $13.70) Dividend yield on common stock Year 4 times days times days % times % % 1% per share per share % Year 3 times days times days % times % % % per share per share %
Transcribed Image Text:Required Calculate the following ratios for Year 4 and Year 3. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Receivables turnover (beginning receivables at January 1, Year 3. were $46,000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $152,000). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) i. Debt-to-equity ratio. (Round your answers to 2 decimal places.) j. Number of times interest was earned. (Round your answers to 2 decimal places.) k. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $528,200). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $528,200). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $257,700). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, $12.35: Year 4. $13.70). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) a b. C. d. e. f. 9. h. i. j. k. 1. m. n. 0. p. q. r. S. Working capital Current ratio Quick ratio Receivables turnover (beginning receivables at January 1, Year 3, were $46,000) Average days to collect accounts receivable Inventory turnover (beginning inventory at January 1, Year 3, was $152,000) Number of days to sell inventory Debt-to-assets ratio Debt-to-equity ratio Number of times interest was earned Plant assets to long-term debt Net margin Turnover of assets (average total assets in Year 3 is $528,200) Return on investment (average total assets in Year 3 is $528,200) Return on equity (average stockholders' equity in Year 3 is $257,700) Earnings per share (total shares outstanding is unchanged) Book value per share of common stock Price-earnings ratio (market price per share: Year 3, $12.35, Year 4, $13.70) Dividend yield on common stock Year 4 times days times days % times % % 1% per share per share % Year 3 times days times days % times % % % per share per share %
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