3. The financial statements of Mugs Company appear below:MUGS COMPANYComparative Balance SheetAssetsCashMarketable securitiesAccounts receivable (net)InventoryProperty, plant and equipment (net)Total assets.Liabilities and stockholders' equityAccounts payable.Short-term notes payable.Bonds payable.Common stockRetained earnings.Total liabilities and stockholders' equity...Net salesCost of goods soldGross profit.ExpensesInterest expensePage 8 of 9MUGS COMPANYIncome StatementFor the Year Ended December 31, 2015FINANCIAL STATEMENT ANALYISSelling expensesAdministrative expenses.Total expensesIncome before income taxes.Income tax expenseNet income.ManEco-01c.d. Net cash provided by operating activities for 2015 was P65,000.Return on common stockholders' equity-2015P 25,00020,00040,000150,000170.000P405,000Times interest earned.Profit margin ratio.Payout ratioReturn on assetsCash debt coverage ratio.P 25,00040,00075,000175,00090,000P405,000P21,00030,00020,0002014P 40,00060,00030,000170,000200,000P500.000P 30,00090,000160,000145,00075,000P500,000P360,000184,000176,000Additional information:a. Cash dividends of P50,000 were declared and paid in 2015.b. Weighted average number of shares of common stock outstanding during 2015 was 62,000shares.Market value of common stock on December 31, 2015, was P15 per share.T71,000105,00030,000P 75.000Using the financial statements and additional information, compute the following ratios for the MugsCompany for 2015. Show all computations.1. Current ratio.2.3. Price-earnings ratio.6.7.9.10.11.

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3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net). Inventory Property, plant and equipment (net). Total assets. Liabilities and stockholders' equity Accounts payable Short-term notes payable. Bonds payable. Common stock 2015 P 25,000 20,000 40,000 150,000 170,000 P405.000 P 25,000 40,000 75,000 175,000 00.000 2014 P 40,000 60,000 30,000 170,000 200,000 P500,000 P 30,000 90,000 160,000 145,000 75.000

3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net). Inventory Property, plant and equipment (net). Total assets. Liabilities and stockholders' equity Accounts payable Short-term notes payable. Bonds payable. Common stock 2015 P 25,000 20,000 40,000 150,000 170,000 P405.000 P 25,000 40,000 75,000 175,000 00.000 2014 P 40,000 60,000 30,000 170,000 200,000 P500,000 P 30,000 90,000 160,000 145,000 75.000

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1PEB

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Stock subscriptions receivable are listed as __________ on the balance sheet. (a) current liabilities (b) current assets (c) long-term assets (d) contra-stockholders equity
3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets. Liabilities and stockholders' equity Accounts payable. Short-term notes payable. Bonds payable. Common stock. Retained earnings. Total liabilities and stockholders' equity. Net sales Cost of goods sold Gross profit. Expenses Interest expense Page 8 of 9 FINANCIAL STATEMENT ANALYIS Selling expenses Administrative expenses. Total expenses. Income before income taxes Income tax expense. Net income. MUGS COMPANY Income Statement For the Year Ended December 31, 2015 c. d. Net cash provided by operating activities for 2015 was P65,000. 2 HOT on common senolders equity O arred ratio ManEco-01 2015 P 25,000 20,000 40,000 uratio 10. Return on assets 11. Cash debt coverage ratio. 150,000 170.000 P405,000 P 25,000 40,000 75,000 175,000 90,000 P405,000 P21,000 30,000 20,000 2014 P…
3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets. Liabilities and stockholders' equity Accounts payable. Short-term notes payable. Bonds payable. Common stock. Retained earnings. Total liabilities and stockholders' equity. Net sales Cost of goods sold Gross profit. Expenses Interest expense Page 8 of 9 FINANCIAL STATEMENT ANALYIS Selling expenses Administrative expenses. Total expenses. Income before income taxes Income tax expense. Net income. MUGS COMPANY Income Statement For the Year Ended December 31, 2015 c. d. Net cash provided by operating activities for 2015 was P65,000. ManEco-01 2 Hetamron common stocanoiders equity 6. 7. 9. Times interest earned_ Profit margin ratio. Payout ratio. 10. Return on assets. 11. Cash debt coverage ratio. 2015 P 25,000 20,000 40,000 150,000 170.000 P405,000 P 25,000 40,000 75,000…
3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets. Liabilities and stockholders' equity Accounts payable Short-term notes payable. Bonds payable. Common stock Retained earnings Total liabilities and stockholders' equity. Net sales Cost of goods sold Gross profit Expenses Interest expense Page 8 of 9. MUGS COMPANY Income Statement For the Year Ended December 31, 2015 FINANCIAL STATEMENT ANALYIS Selling expenses Administrative expenses Total expenses Income before income taxes Income tax expense Net income ManEco-01 2015 P 25,000 20,000 40,000 150,000 170,000 P405,000 P 25,000 40,000 75,000 175,000 90,000 P405,000 P21,000 30,000 20,000 2014 P 40,000 60,000 30,000 170,000 200,000 P500,000 shares. C. Market value of common stock on December 31, 2015, was P15 per share.. d. Net cash provided by operating activities for 2015…
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