ACC 203 The comparative statements of Lauer Company are presented below and Compute the following ratios for 2017
| LAUER COMPANY Income Statement For the Year Ended December 31 |
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| 2017 | 2016 | ||
| Net sales (all on account) | $650,000 | $520,000 | |
| Expenses | |||
| Cost of goods sold | 415,000 | 354,000 | |
| Selling and administrative | 150,800 | 114,800 | |
| Interest expense | 7,200 | 6,000 | |
| Income tax expense | 18,000 | 14,000 | |
| Total expenses | 591,000 | 488,800 | |
| Net income | $ 59,000 | $ 31,200 | |
| LAUER COMPANY Balance Sheets December 31 |
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| Assets | 2017 | 2016 | |
| Current assets | |||
| Cash | $ 41,000 | $ 18,000 | |
| Short-term investments | 18,000 | 15,000 | |
| Accounts receivable (net) | 92,000 | 74,000 | |
| Inventory | 84,000 | 70,000 | |
| Total current assets | 235,000 | 177,000 | |
| Plant assets (net) | 403,000 | 383,000 | |
| Total assets | $638,000 | $560,000 | |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities | |||
| Accounts payable | $122,000 | $110,000 | |
| Income taxes payable | 23,000 | 20,000 | |
| Total current liabilities | 145,000 | 130,000 | |
| Long-term liabilities | |||
| Bonds payable | 110,000 | 80,000 | |
| Total liabilities | 255,000 | 210,000 | |
| Stockholders’ equity | |||
| Common stock ($5 par) | 150,000 | 150,000 | |
| Retained earnings | 233,000 | 200,000 | |
| Total stockholders’ equity | 383,000 | 350,000 | |
| Total liabilities and stockholders’ equity | $638,000 | $560,000 | |
Additional data:
The common stock recently sold at $19.50 per share.
Instructions
Compute the following ratios for 2017.
(a) Current. (h) Return on common stockholders’ equity
(b) Acid-test. (i) Earnings per share
(c) Accounts receivable turnover. (j) Price-earnings
(d) Inventory turnover. (k) Payout.
(e) Profit margin. (l) Debt to assets.
(f) Asset turnover. (m) Times interest earned.
(g) Return on assets.
Course: ACC 203 Managerial Accounting
School: Community College of Alleghany County
- 31/05/2017
- 20