Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Chapter 9, Problem 9.4.10P
Twenty metrics of liquidity, solvency, and profitability
The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8
Instructions
Ratio of fixed assets to long-term liabilities
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Measures of liquidity, solvency, and profitabilityThe comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2.
InstructionsDetermine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):1. Working capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days' sales in receivables6. Inventory turnover7. Number of days' sales in inventory8. Ratio of fixed assets to long-term liabilities9. Ratio of liabilities to stockholders' equity10. Times interest earned11. Asset turnover12. Return on total assets13. Return on stockholders' equity14. Return on common stockholders' equity15. Earnings per share on common stock16. Price-earnings ratio17. Dividends per share of common stock18. Dividend yield
Twenty metrics of liquidity, Solvency, and Profitability
The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $58 on December 31, 20Y8.
AUTOMOTIVE SOLUTIONS INC.Comparative Income StatementFor the Years Ended December 31, 20Y8 and 20Y7
20Y8
20Y7
Sales
$4,681,125
$4,312,980
Cost of goods sold
(1,553,440)
(1,429,160)
Gross profit
$3,127,685
$2,883,820
Selling expenses
$(1,090,440)
$(1,327,530)
Administrative expenses
(928,885)
(779,660)
Total operating expenses
(2,019,325)
(2,107,190)
Operating income
$1,108,360
$776,630
Other revenue and expense:
Other income
58,340
49,570
Other expense (interest)
(304,000)
(167,200)
Income before income tax
$862,700
$659,000
Income tax expense
(103,500)
(78,800)
Net income
$759,200
$580,200
AUTOMOTIVE SOLUTIONS INC.Comparative Statement of…
Twenty metrics of liquidity, Solvency, and Profitability
The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $58 on December 31, 20Y8.
AUTOMOTIVE SOLUTIONS INC.Comparative Income StatementFor the Years Ended December 31, 20Y8 and 20Y7
20Y8
20Y7
Sales
$4,681,125
$4,312,980
Cost of goods sold
(1,553,440)
(1,429,160)
Gross profit
$3,127,685
$2,883,820
Selling expenses
$(1,090,440)
$(1,327,530)
Administrative expenses
(928,885)
(779,660)
Total operating expenses
(2,019,325)
(2,107,190)
Operating income
$1,108,360
$776,630
Other revenue and expense:
Other income
58,340
49,570
Other expense (interest)
(304,000)
(167,200)
Income before income tax
$862,700
$659,000
Income tax expense
(103,500)
(78,800)
Net income
$759,200
$580,200
AUTOMOTIVE SOLUTIONS INC.Comparative Statement of…
Chapter 9 Solutions
Survey of Accounting (Accounting I)
Ch. 9 - What type of analysis is indicated by the...Ch. 9 - Which of the following measures indicates the...Ch. 9 - Prob. 3SEQCh. 9 - Prob. 4SEQCh. 9 - Prob. 5SEQCh. 9 - That is the difference between horizontal and...Ch. 9 - Prob. 2CDQCh. 9 - Prob. 3CDQCh. 9 - Prob. 4CDQCh. 9 - How would the current and quick ratios of a...
Ch. 9 - For Belzcr Corporation, the working capital at the...Ch. 9 - Prob. 7CDQCh. 9 - Prob. 8CDQCh. 9 - a. Why is it advantageous to have a high inventory...Ch. 9 - Prob. 10CDQCh. 9 - Prob. 11CDQCh. 9 - Prob. 12CDQCh. 9 - Prob. 13CDQCh. 9 - Prob. 14CDQCh. 9 - Prob. 15CDQCh. 9 - Favorable business conditions may bring about...Ch. 9 - Prob. 17CDQCh. 9 - Prob. 9.1ECh. 9 - Vertical analysis of income statement The...Ch. 9 - Common-sized income statement Revenue and expense...Ch. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Current position analysis The bond indenture for...Ch. 9 - Accounts receivable analysis The following data...Ch. 9 - Prob. 9.10ECh. 9 - Inventory analysis The following data were...Ch. 9 - Inventory analysis Costco Wholesale Corporation...Ch. 9 - Ratio of liabilities to stockholders' equity and...Ch. 9 - Prob. 9.14ECh. 9 - Debt ratio, ratio of liabilities to stockholders'...Ch. 9 - Prob. 9.16ECh. 9 - Profitability metrics The following selected data...Ch. 9 - Profitability metrics Macy's, Inc. (M). sells...Ch. 9 - Seven metrics The following data were taken from...Ch. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.22ECh. 9 - Unusual income statement items Assume that the...Ch. 9 - Horizontal analysis for income statement For 20Y3....Ch. 9 - Horizontal analysis for income statement For 20Y3....Ch. 9 - Prob. 9.2.1PCh. 9 - Prob. 9.2.2PCh. 9 - Effect of transactions on current position...Ch. 9 - Effect of transactions on current position...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Prob. 9.4.7PCh. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Twenty metrics of liquidity, solvency, and...Ch. 9 - Prob. 9.4.20PCh. 9 - Trend analysis Critelli Company has provided the...Ch. 9 - Trend analysis Critelli Company has provided the...Ch. 9 - Prob. 9.1CCh. 9 - Prob. 9.2CCh. 9 - Prob. 9.3CCh. 9 - Prob. 9.4.1CCh. 9 - Prob. 9.4.2CCh. 9 - Prob. 9.4.3CCh. 9 - Comprehensive profitability and solvency analysis...Ch. 9 - Comprehensive profitability and solvency analysis...
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- Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yieldarrow_forwardMeasures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yieldarrow_forwardTwenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Ratio of liabilities to stockholder.' equityarrow_forward
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- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.arrow_forwardTwenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Quick ratioarrow_forwardTwenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Workingarrow_forward
- Twenty metrics of liquidity, Solvency, and Profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $58 on December 31, 20Y8. AUTOMOTIVE SOLUTIONS INC.Comparative Income StatementFor the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Sales $4,681,125 $4,312,980 Cost of goods sold (1,553,440) (1,429,160) Gross profit $3,127,685 $2,883,820 Selling expenses $(1,090,440) $(1,327,530) Administrative expenses (928,885) (779,660) Total operating expenses (2,019,325) (2,107,190) Operating income $1,108,360 $776,630 Other revenue and expense: Other income 58,340 49,570 Other expense (interest) (304,000) (167,200) Income before income tax $862,700 $659,000 Income tax expense (103,500) (78,800) Net income $759,200 $580,200 AUTOMOTIVE SOLUTIONS INC.Comparative Statement of…arrow_forwardTwenty metrics of liquidity, Solvency, and Profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $58 on December 31, 20Y8. AUTOMOTIVE SOLUTIONS INC.Comparative Income StatementFor the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Sales $4,681,125 $4,312,980 Cost of goods sold (1,553,440) (1,429,160) Gross profit $3,127,685 $2,883,820 Selling expenses $(1,090,440) $(1,327,530) Administrative expenses (928,885) (779,660) Total operating expenses (2,019,325) (2,107,190) Operating income $1,108,360 $776,630 Other revenue and expense: Other income 58,340 49,570 Other expense (interest) (304,000) (167,200) Income before income tax $862,700 $659,000 Income tax expense (103,500) (78,800) Net income $759,200 $580,200 AUTOMOTIVE SOLUTIONS INC.Comparative Statement of…arrow_forwardTwenty metrics of liquidity, Solvency, and Profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $58 on December 31, 20Y8. AUTOMOTIVE SOLUTIONS INC.Comparative Income StatementFor the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Sales $4,681,125 $4,312,980 Cost of goods sold (1,553,440) (1,429,160) Gross profit $3,127,685 $2,883,820 Selling expenses $(1,090,440) $(1,327,530) Administrative expenses (928,885) (779,660) Total operating expenses (2,019,325) (2,107,190) Operating income $1,108,360 $776,630 Other revenue and expense: Other income 58,340 49,570 Other expense (interest) (304,000) (167,200) Income before income tax $862,700 $659,000 Income tax expense (103,500) (78,800) Net income $759,200 $580,200 AUTOMOTIVE SOLUTIONS INC.Comparative Statement of…arrow_forward
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