Reference no: EM131716676

Question - Comparative Balance Sheet 2017 and 2016

2017 2016

Assets 

Current assets: 

Cash 579,000 400,000 

Marketable securities 307,000 260,000 

Accounts receivable (net) 130,000 110,000 

Inventories 70,000 58,000 

Prepaid expenses 153,000 139,000 

Total current assets 1,239,000 967,000 

Long-term investments 2,350,000 2,200,000 

Property, plant, and equipment (net) 1,220,000 1,188,000 

Total assets 4,809,000 4,355,000 

Liabilities 

Current liabilities 447,000 400,000 

Long-term liabilities: 

Mortgage note payable, 8%, due 2023 100,000 0 

Bonds payable, 5%, due 2019 1,000,000 1,000,000 

Total long-term liabilities 1,100,000 1,000,000 

Total liabilities 1,547,000 1,400,000 

Stockholders' Equity 

Preferred $0.75 stock, $10 par 200,000 200,000 

Common stock, $10 par 232,000 100,000 

Retained earnings 2,830,000 2,655,000 

Total stockholders' equity 3,262,000 2,955,000 

Total liabilities and stockholders' equity 4,809,000 4,355,000 

There were 20,000 shares of preferred stock outstanding and 10,000 shares of common stock outstanding in both years. Preferred dividends during 2017 were $15,000.

Additional selected information from the income statement for the year ended December 31, 2017 is as follows:

Sales --- 1,330,000

Cost of goods sold -- 498,000

Gross profit -- 832,000

Net income -- 368,000

Determine the following measures for 2017, rounding to one decimal place unless otherwise indicated.

QUESTIONS BELOW

1. Ratio of sales to assets %

2. Earnings per share on common stock (to the nearest cent) $

3. Ratio of liabilities to stockholders' equity

4. Inventory turnover

5. Ratio of fixed assets to long-term liabilities

6. Number of days' sales in receivables

7. Current ratio

8. Rate earned on common stockholders' equity %

9. Quick ratio