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1. The financial statements ofGaines Company appear below: GAINES COMPANY Comparative BalanceSheet December 31, �������������������������������������������Assets 2013 2012 Cash................................................................................................... $25,000 $ 40,000 Short-terminvestments...................................................................... 15,000 60,000 Accounts receivable(net).................................................................. 50,000 30,000Inventory........................................................................................... 50,000 70,000 Property, plant and equipment(net).................................................. 260,000 300,000 Total assets.................................................................................. $400,000 $500,000 Liabilities and stockholders' equity Accountspayable............................................................................... $20,000 $ 30,000 Short-term notespayable................................................................... 30,000 90,000 Bondspayable................................................................................... 90,000 160,000 Commonstock................................................................................... 150,000 150,000 Retainedearnings.............................................................................. 110,000 70,000 Totalliabilities and stockholders'equity...................................... $400,000 $500,000 GAINES COMPANY Income Statement For the Year EndedDecember 31, 2013 Netsales............................................................................................. $400,000 Cost of goodssold............................................................................. 240,000 Grossprofit........................................................................................ 160,000 Expenses Operatingexpenses...................................................................... $42,000 Interestexpense........................................................................... 18,000 Totalexpenses........................................................................ 60,000 Income before incometaxes.............................................................. 100,000 Income taxexpense........................................................................... 30,000 Netincome......................................................................................... $ 70,000 Additional information: a. Cashdividends of $23,000 were declared and paid in 2013.b. Weighted-average number of shares ofcommon stock outstanding during 2013 was 30,000 shares.c. Market value of common stock on December31, 2013, was $21 per share. Required: Using the financialstatements and additional information, compute the following ratiosfor Gaines Company for 2013. Show all computations. (20 min.) 1. Current ratio1.8:1 (90,000/50,000) 2. Return on commonstockholders' equity _________. 3. Price-earnings ratio _________. 4. Acid-test ratio_________. 5. Receivables turnover _________. 6. Times interest earned _________. 7. Profit margin_________. 8. Days ininventory _________. 9. Payout ratio 32.8% 10. Return on assets_________.

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Tod Thiel
Tod ThielLv2
28 Sep 2019

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Using the financial statement information from below, create balance sheets and (traditional gross-margin format) income statements for the given years. • From those financial statements determine the following for the most current year:

1) Working Capital

2) Current Ratio

3) Quick Ratio

4) Inventory Turnover

5) Average Sales Period

6) Total Asset Turnover

7) Times Interest Earned Ratio

8) Debt-to-Equity Ratio

9) Gross Margin percentage

10) Cost of Goods Sold percentage 1

11) Net Profit Margin percentage

12) Return on Total Assets

13) Return on Equity

14) Earnings per Share

15) Book Value per Share

Year ended Dec. 31, 2016

Cost of Goods Sold 400,000

Cash 35,000

Selling & Administrative Expenses 160,000

Salaries Payable 40,000

Long-term liabilities 270,000

Finished Goods Inventory 55,000

Accounts Payable 20,000

Interest Expense 8,000

Income Tax Expense 30%

Sales Revenue (all on account) 700,000

Plant, Property, and Equipment, net 300,000

Accounts Receivable 60,000

Common Stock ($1 par) 120,000


Year ended Dec. 31, 2015

Cash 30,000

Accounts Receivable 50,000

Finished Goods Inventory 60,000

Plant, Property, and Equipment, net 320,000

Accounts Payable 20,000

Salaries Payable 20,000

Long-term liabilities 300,000

Common Stock ($1 par) 120,000

Dilbert Farm Supply is located in a small town in the ruralwest. Data regarding the store's

operations follow:
� Sales are budgeted at $260,000 for November, $230,000 forDecember, and $210,000 for
January.
� Collections are expected to be 80% in the month of sale, 19% inthe month following the sale,
and 1% uncollectible.
� The cost of goods sold is 65% of sales.
� The company desires to have an ending merchandise inventory atthe end of each month equal
to 60% of the next month's cost of goods sold. Payment formerchandise is made in the month
following the purchase.
� Other monthly expenses to be paid in cash are $20,300.
� Monthly depreciation is $20,000.
� Ignore taxes.

Balance sheet october 31

assets

cash $27000

accounts receivable, net allowance for uncollectible accounts$79,000

Merchandise inventory $101,400

Property, plant and equipment. net of $574,000 accumulateddepreciation 1,082,000

Total Assets $1,289,400

Liabilities and Stockholders' Equity

Accounts payable $169,000

Common Stock 740,000

Retained Earnings 380,400

Total liabilities and stockholders' equity $1,289,400

This was posted previously but I'm having problems with thefollowing and please show equations:

The difference between cash receipts and cash disburstments forDecember would be:

A. 55,800, B. 37,900 C. 93,700 D. 17,900

The net income for December would be:

A. 60,200 B 37,900 C. 40,200 D. 55,800

The cash balance at the end of December would be:

A. 180,500 B. 153,500 C. 82,800 D. 27,000

Accounts Payable at the end of December would be:

A. 81,900 B. 141,700 C. 59,800 D. 149,500

Retained earnings at the end of December would be:

A. 380,400 B. 418,300 C. 471,300 D. 466,400

Financial Information for Case9-1
Industy Wide
Balance Sheets
Years Ended December 31, 2014and 2015
2015 2014
Assets
Current Assets:
Cash $ 30,000 $ 25,000
Accounts receivable 110,000 90,000
Inventories 100,000 80,000
Total Current Assets 240,000 195,000
Fixed Assets;
Plant and equipment 250,000 220,000
Less accumulated depreciation (100,000) (65,000)
Land 50,000 50,000
Total Fixed Assets 200,000 205,000
Total Assets $ 440,000 $ 400,000
Liabilities and Equity
Current Liabilities:
Accounts payable $ 58,000 $ 50,000
Notes payable-due within one year 50,000 50,000
Accrued liabilities - -
Total Current Liabilities 108,000 100,000
Long Term Liabilities 32,000 20,000
Total Liabilities 140,000 120,000
Stockholders' Equity:
Common stock 100,000 100,000
Retained earnings 200,000 180,000
Total Stockholders' Equity 300,000 280,000
Total Liabilities and Equty $ 440,000 $ 400,000
Industry Wide
Income Statement
Years Ended December 31, 2014and 2015
Revenues $ 1,100,000 $ 1,000,000
Cost of goods sold (700,000) (650,000)
Gross margin 400,000 350,000
Operating expenses (275,000) (255,000)
Operating income 125,000 95,000
Interest expense (15,000) (15,000)
Income before taxes 110,000 80,000
Income taxes (44,000) (32,000)
Net income $ 66,000 $ 48,000
Financial Information for Case9-1
Industy Wide
Balance Sheets
Years Ended December 31, 2014and 2015
2015 2014
Assets
Current Assets:
Cash $ 30,000 $ 25,000
Accounts receivable 110,000 90,000
Inventories 100,000 80,000
Total Current Assets 240,000 195,000
Fixed Assets;
Plant and equipment 250,000 220,000
Less accumulated depreciation (100,000) (65,000)
Land 50,000 50,000
Total Fixed Assets 200,000 205,000
Total Assets $ 440,000 $ 400,000
Liabilities and Equity
Current Liabilities:
Accounts payable $ 58,000 $ 50,000
Notes payable-due within one year 50,000 50,000
Accrued liabilities - -
Total Current Liabilities 108,000 100,000
Long Term Liabilities 32,000 20,000
Total Liabilities 140,000 120,000
Stockholders' Equity:
Common stock 100,000 100,000
Retained earnings 200,000 180,000
Total Stockholders' Equity 300,000 280,000
Total Liabilities and Equty $ 440,000 $ 400,000
Industry Wide
Income Statement
Years Ended December 31, 2014and 2015
Revenues $ 1,100,000 $ 1,000,000
Cost of goods sold (700,000) (650,000)
Gross margin 400,000 350,000
Operating expenses (275,000) (255,000)
Operating income 125,000 95,000
Interest expense (15,000) (15,000)
Income before taxes 110,000 80,000
Income taxes (44,000) (32,000)
Net income $ 66,000 $ 48,000

1. Calculate the current ratio and average collection period foraccounts receivable, inventory turnover, gross margin percentage,and return on equity for 2014 and 2015 for the JordanCorporation.

2. Calculate the current ratio and average collection period foraccounts receivable, inventory turnover, gross margin percentage,and return on equity for the Industry.

3. Compare the performance of the Jordan Corporation between2014 and 2015 and comment on the trend of each ratio.

4. Compare the performance of the Jordan Corporation in 2015 tothe industry averages and comment on each.

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