Reference no: EM131793117
The following financial statements apply to Robin Company.
| |
2015 |
2014 |
| Revenues |
|
|
| Net sales |
210000 |
175000 |
| Other revenues |
4000 |
5000 |
| |
|
|
| Total revenues |
214000 |
180000 |
| |
|
|
| Expenses |
|
|
| Cost of goods sold |
126000 |
103000 |
| Selling expenses |
21000 |
19000 |
| General and administrative expenses |
11000 |
10000 |
| Interest expense |
3000 |
3000 |
| Income tax expense |
21000 |
18000 |
| |
|
|
| Total expenses |
182000 |
153000 |
| |
|
|
| Earnings from continuing operations |
32000 |
27000 |
| before extraordinary items |
|
|
| Extraordinary gain (net of $3,000 tax) |
4000 |
0 |
| |
|
|
| Net income |
36000 |
27000 |
| |
|
|
| Assets |
|
|
| Current assets |
|
|
| Cash |
4000 |
8000 |
| Marketable securities |
1000 |
1000 |
| Accounts receivable |
35000 |
32000 |
| Inventories |
100000 |
96000 |
| Prepaid expenses |
3000 |
2000 |
| |
|
|
| Total current assets |
143000 |
139000 |
| Plant and equipment (net) |
105000 |
105000 |
| Intangibles |
20000 |
0 |
| |
|
|
| Total assets |
268000 |
244000 |
| |
|
|
| Liabilities and Stockholders' Equity |
|
|
| Liabilities |
|
|
| Current liabilities |
|
|
| Accounts payable |
40000 |
54000 |
| Other |
17000 |
15000 |
| |
|
|
| Total current liabilities |
57000 |
69000 |
| Bonds payable |
66000 |
67000 |
| |
|
|
| Total liabilities |
123000 |
136000 |
| |
|
|
| Stockholders' equity |
|
|
| Common stock (50,000 shares) |
115000 |
115000 |
| Retained earnings |
30000 |
(7,000) |
| |
|
|
| Total stockholders' equity |
145000 |
108000 |
| |
|
|
| Total liabilities and stockholders' equity |
268000 |
244000 |
Required
Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculations.
a. Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
b. Return on investment. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
c. Return on equity. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)d.
Earnings per share. (Round your answers to 2 decimal places.)
e. Price-earnings ratio (market prices at the end of 2014 and 2015 were $5.94 and $4.77, respectively). (Round intermediate calculations and final answers to 2 decimal places.)
f. Book value per share of common stock. (Round your answers to 2 decimal places.)
g. Times interest earned. (Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. Round your answers to 2 decimal places.)
h. Working capital.