Comparative financial statements

Assignment Help Financial Accounting

Reference no: EM13916421

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $61 on December 31, 2014.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2014 and 2013
		2014				2013
Retained earnings, January 1		$2,229,375				$1,895,825
Add net income for year		476,000				388,300
Total		$2,705,375				$2,284,125
Deduct dividends
	On preferred stock	$6,300				$6,300
	On common stock	48,450				48,450
				Total	$54,750	$54,750
Retained earnings, December 31			$2,650,625			$2,229,375

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2014 and 2013
	2014	2013
Sales	$3,037,310	$2,794,300
Sales returns and allowances	15,110	9,820
Net sales	$3,022,200	$2,784,480
Cost of goods sold	1,121,280	1,031,580
Gross profit	$1,900,920	$1,752,900
Selling expenses	$658,730	$785,840
Administrative expenses	561,140	461,530
Total operating expenses	1,219,870	1,247,370
Income from operations	$681,050	$505,530
Other income	35,850	32,270
	$716,900	$537,800
Other expense (interest)	176,000	96,800
Income before income tax	$540,900	$441,000
Income tax expense	64,900	52,700
Net income	$476,000	$388,300

Blige Inc.
Comparative Balance Sheet
December 31, 2014 and 2013
		Dec. 31, 2014		Dec. 31, 2013
Assets
Current assets
	Cash		$426,610		$459,630
	Temporary investments		645,680		761,670
	Accounts receivable (net)		518,300		489,100
	Inventories		394,200		306,600
	Prepaid expenses		80,710		91,930
		Total current assets	$2,065,500		$2,108,930
Long-term investments			1,353,625		262,802
Property, plant, and equipment (net)			3,080,000		2,772,000
Total assets			$6,499,125		$5,143,732
Liabilities
Current liabilities			$688,500				$744,357
Long-term liabilities
	Mortgage note payable, 8%, due 2019		$990,000			$0
	Bonds payable, 8%, due 2015		1,210,000			1,210,000
		Total long-term liabilities	$2,200,000			$1,210,000
Total liabilities			$2,888,500			$1,954,357
Stockholders' Equity
Preferred $0.70 stock, $50 par			$450,000			$450,000
Common stock, $10 par			510,000			510,000
Retained earnings			2,650,625			2,229,375
	Total stockholders' equity		$3,610,625			$3,189,375
Total liabilities and stockholders' equity			$6,499,125			$5,143,732

Required:

Determine the following measures for 2014, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital	$_
2. Current ratio	_
3. Quick ratio	_
4. Accounts receivable turnover	_
5. Number of days' sales in receivables	_	days
6. Inventory turnover	_
7. Number of days' sales in inventory	_	days
8. Ratio of fixed assets to long-term liabilities	_
9. Ratio of liabilities to stockholders' equity	_
10. Number of times interest charges are earned	_
11. Number of times preferred dividends are earned	_
12. Ratio of net sales to assets	_
13. Rate earned on total assets	_	%
14. Rate earned on stockholders' equity	_	%
15. Rate earned on common stockholders' equity	_	%
16. Earnings per share on common stock	$ _
17. Price-earnings ratio	_
18. Dividends per share of common stock	$ _
19. Dividend yield	_	%

Reference no: EM13916421

Questions Cloud

Determine the given probabilities : For the standard normal distribution, determine the following probabilities: Pr(Z ≥ 2.05)

Judicial process for tax disputes : Discuss the judicial process for tax disputes. What courts are available to taxpayers to settle their dispute with the IRS and what are the differences between them? Are there times when a taxpayer may benefit by choosing one tax court over another?

How does a corporation compute earnings and profits : How does a corporation compute earnings and profits (E&P)? What income is deferred to a later year when computing taxable income but is included in E&P in the current year?

Calculate confidence interval for given situations : A random sample of n measurements was selected from a population with unknown mean μ and standard deviation σ. Calculate a 99% confidence interval for μ for each of the following situations: n=85, x¯=23.8, s=3.75

Comparative financial statements : Determine the following measures for 2014, rounding to one decimal place, except for dollar amounts

Making an in investment based on present worth : name three of the fundamental principles of engineering economics.what is the decision rule for making an in investment based on present worth

Income statement and balance sheet based : General and Admin $350 Please prepare Paul's Income Statement and Balance sheet based upon this information. HINT: Adjustments to Retained Earnings will have to be made

Develop a cost budgeted : Develop a cost budgeted schedule based on the earliest start time

Reverse stock split to increase the stock value : Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $4 per share. It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 108 shares.a

User Account

All Pages