Accounting(24th) Warren/Reeve/Duchac
PR 14-2A #1~5
PR 14-4A # 1~3
PR 15-3A # 1~2
PR 14-2A #1~5
PR 14-4A # 1~3
PR 15-3A # 1~2
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Related questions
Based on your analysis, what are the strengths and weakness of Bettancort Inc.?
Problem 15 (14)- 4 A Financial & Managerial Accounting 13 th edition p.742-743 Nineteen measures of solvency and profitability.
1. | Current Assets | - | Current Liabilities | = | Calculated Value | |||||||
1. | Working capital: | $1,100,000 | $440,000 | $660,000 | ||||||||
Ratio | Numerator | ÷ | Denominator | = | Calculated Value | |||||||
2. | ||||||||||||
2. | Current ratio | $ 1,100,000 | $ 440,000 | 2.5 | ||||||||
3. | ||||||||||||
3. | Quick ratio | $ 880,000 | $ 440,000 | 2.0 | ||||||||
4. | ||||||||||||
4. | Accounts receivable | |||||||||||
turnover | $ 1,200,000 | $ 120,000 | 10.0 | |||||||||
5. | ||||||||||||
5. | Number of days' | |||||||||||
sales in receivables | $ 120,000 | $ 3,288 | * | 36.5 | * | |||||||
6. | ||||||||||||
6. | Inventory turnover | $ 500,000 | $ 62,500 | 8.0 | ||||||||
7. | ||||||||||||
7. | Number of days' | |||||||||||
sales in inventory | $ 62,500 | $ 1,370 | * | 45.6 | * | |||||||
8. | ||||||||||||
8. | Ratio of fixed assets to | |||||||||||
long-term liabilities | $ 1,320,000 | $ 1,100,000 | 1.2 | |||||||||
9. | ||||||||||||
9. | Ratio of liabilities to | |||||||||||
stockholders' equity | $ 1,540,000 | $ 3,230,000 | 0.5 | |||||||||
10. | ||||||||||||
10. | Number of times | |||||||||||
interest charges earned | $ 446,000 | $ 66,000 | 6.8 | |||||||||
11. | ||||||||||||
11. | Number of times | |||||||||||
preferred dividends earned | $ 300,000 | $ 15,000 | 20.0 | |||||||||
12. | ||||||||||||
12. | Ratio of sales to | |||||||||||
assets | $ 1,200,000 | $ 2,287,500 | 0.5 | |||||||||
13. | ||||||||||||
13. | Rate earned on total | |||||||||||
assets | $ 366,000 | $ 4,562,500 | 8.0% | |||||||||
14. | ||||||||||||
14. | Rate earned on stock- | |||||||||||
holders' equity | $ 300,000 | $ 3,092,500 | 9.7% | |||||||||
15. | ||||||||||||
15. | Rate earned on common | |||||||||||
stockholders' equity | $ 285,000 | $ 2,892,500 | 9.9% | |||||||||
16. | ||||||||||||
16. | Earnings per share | |||||||||||
on common stock | $ 285,000 | 10,000 | $28.50 | |||||||||
17. | ||||||||||||
17. | Price-earnings ratio | $ 71.25 | $ 28.50 | 2.5 | ||||||||
18. | ||||||||||||
18. | Dividends per share | |||||||||||
of common stock | $ 10,000 | 10,000 | $1.00 | |||||||||
19. | ||||||||||||
19. | Dividend yield | $ 1.00 | $ 71.25 | 1.4% | ||||||||