ACC 203 The comparative statements of Lauer Company are presented below and Compute the following ratios for 2017

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
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
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