Reference no: EM13173233

Financial information for Roberts Company at December 31, 2011, and for the year then ended, are presented below:

			Balance Sheet
					December 31,
					2011	2010
	Cash				$       31,000	$    15,000
	Accounts receivable				28,500	30,000
	Allowance for doubtful accounts				(2,000)	(1,500)
	Inventory				15,000	10,000
	Prepaid insurance				1,400	2,400
	Property, plant, and equipment				81,000	80,000
	Accumulated depreciation				(16,000)	(20,000)
	Land				81,100	40,100
		Total assets			$      220,000	$  156,000
	Accounts payable				$        11,000	$    10,000
	Wages payable				1,000	2,000
	Interest payable				1,000	-
	Notes payable, long-term				46,000	20,000
	Common stock, nopar				136,000	100,000
	Retained earnings				25,000	24,000
		Total liabilities and
		stockholders' equity			$       220,000	$  156,000
			Income Statement
		Sales revenue			$         80,000
		Cost of goods sold			(35,000)
		Depreciation expense			(5,000)
		Bad debt expense			(1,000)
		Insurance expense			(1,000)
		Interest expense			(2,000)
		Salaries and wages expense			(12,000)
		Income tax expense			(3,000)
		Remaining expenses			(13,000)
		Loss on sale of operational assets			(2,000)
		Net income			$          6,000

Additional information:

1. Wrote off $500 accounts receivable as uncollectible.

2. Sold an operational asset for $4,000 cash (cost, $15,000, accumulated depreciation, $9,000).

3. Issued common stock for $5,000 cash.

4. Declared and paid a cash dividend of $5,000.

5. Purchased land for $20,000 cash.

6. Acquired land for $21,000, and issued common stock as payment in full.

7. Acquired operational assets, cost $16,000; issued a $16,000, three-year, interest-bearing note payable.

8. Paid a $10,000 long-term note installment by issuing common stock to the creditor.

9. Borrowed cash on a long-term note, $20,000.

Required:

Prepare the statement of cash flows using the indirect method.

         Cash                                                                                                    $   40,000

         Accounts receivable                                                                              125,000

         Inventory                                                                                                 75,000

         Plant assets (net)                                                                                   360,000

         Total assets                                                                                          $600,000

 

         Accounts payable                                                                               $   75,000

         Accrued taxes and expenses payable                                                       25,000

         Long-term debt                                                                                      100,000

         Common stock ($10 par)                                                                       160,000

         Paid-in capital in excess of par                                                                40,000

         Retained earnings                                                                                  200,000

         Total equities                                                                                       $600,000

 

         Net sales (all on credit)                                                                     $1,000,000

         Cost of goods sold                                                                                 750,000

         Net income                                                                                              90,000

Instructions

Compute the following: (It is not necessary to use averages for any balance sheet figures involved.)

(a) Current ratio

(b) Inventory turnover

(c) Receivables turnover

(d) Book value per share

(e) Earnings per share

(f) Debt to total assets

(g) Profit margin on sales

(h) Return on common stock equity