Reference no: EM131197037
(Ratio Computations and Analysis) Prior Company's condensed financial statements provide the following information,
PRIOR COMPANY BALANCE Sheet
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Dec, 31, 2014
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Dec, 31, 2013
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Cash
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$ 52,000
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$ 60,000
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Accounts recontabee (net)
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198,000
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80000
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Short-term investments
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80,000
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40,000
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Inventory
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440,000
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360,000
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Prepaid expenses
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3,000
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7,000
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Total current assets
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$ 773,000
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$ 547,000
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Property, plant, and equipment (net)
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857,000
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853,000
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Taal assets
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$1,630,000
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$1,400,000
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Current liabilities
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240,000
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160,000
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Bonds payable
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400,000
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400,000
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Common stockholders' equity
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990,000
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840,000
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Total liabilities and stockhokkce equity
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$1,630,000
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$1,400,000
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INCOME STATEMENT FOR THE YEAR ENDED 2014
Sales revenue $ 1,640,000
Cost of goods sold (800,000)
Gross profit 840,000
Selling and administrative expanses (440,000)
Interest expense (40,000)
Net income $ 360,000
Instructions
(a) Determine the following for 2014,
(1) Current ratio at December 31,
(2) Acid-test ratio at December 31,
(3) Accounts receivable turnover,
(4) Inventory turnover,
(5) Return on assets,
(6) Profit margin on sales,
(b) Prepare a brief evaluation of the financial condition of Prior Company and of the adequacy of its profits.
Attached is the Excel file
Attachment:- Assignment- Excel file.rar
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