From the following data, determine for the current year the (a)rate earned on total assets, (b) rate earned on stockholders'equity, (c) rate earned on common stockholders' equity, (d)earnings per share on common stock, (e) price-earnings ratio oncommon stock, and (f) dividend yield on common stock. Assume thatthe current market price per share of common stock is $25. (Presentkey figures used in your computations.)

Current year Preceding Year
Current assets $ 745,000 $ 820,000
Property, plant, and equipment 1,510,000 1,400,000
Current liabilities
(non-interest-bearing) 160,000 140,000
Long-term liabilities, 12% 400,000 400,000
Preferred 10% stock 250,000 250,000
Common stock, $25 par 1,200,000 1,200,000
Retained earnings:
Beginning of year 230,000 160,000
Net income for year 110,00 155,000
Preferred dividends declared (25,000) (25,000)
Common dividends declared (70,000) (60,000)

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Patrina SchowalterLv2

28 Sep 2019

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determine for the current year the rate earned on total assets,rate earned on stockholders' equity, rate earned on commonstockholders' equity, earnings per share on common stock,price-earnings ratio on common stock, and dividend yield on commonstock. the current market price per share of common stock is$25.

Current Year Preceding Year
Current assets 745000 820000
Property Plant and Equipment 1510000 1400000
Current Liabilities 160000 140000
Long term liabilities (12%) 400000 400000
Preferred 10% stock 250000 250000
Common Stock $25 par 1200000 1200000
Retained Earnings:
Beginning of year 240000 160000
Net Income for year 95000 155000
Preferred dividends declared (25000) (25000)
Common dividends declared (70000) (60000)

apricothound714

The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2016.

Bettancort Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
			2016	2015
Retained earnings, January 1			$2,655,000	$2,400,000
Add net income for year			300,000	280,000
Total			$2,955,000	$2,680,000
Deduct dividends:
	On preferred stock		$15,000	$15,000
	On common stock		10,000	10,000
		Total	$25,000	$25,000
Retained earnings, December 31			$2,930,000	$2,655,000

Bettancort Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016	2015
Sales (all on account)	$1,212,000	$1,010,000
Sales returns and allowances	12,000	10,000
Sales	$1,200,000	$1,000,000
Cost of goods sold	500,000	475,000
Gross profit	$700,000	$525,000
Selling expenses	$240,000	$200,000
Administrative expenses	180,000	150,000
Total operating expenses	$420,000	$350,000
Income from operations	$280,000	$175,000
Other income	166,000	225,000
	$446,000	$400,000
Other expense (interest)	66,000	60,000
Income before income tax	$380,000	$340,000
Income tax expense	80,000	60,000
Net income	$300,000	$280,000

Bettancort Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016	Dec. 31, 2015
Assets
Current assets:
	Cash		$450,000	$400,000
	Marketable securities		300,000	260,000
	Accounts receivable (net)		130,000	110,000
	Inventories		67,000	58,000
	Prepaid expenses		153,000	139,000
		Total current assets	$1,100,000	$967,000
Long-term investments			2,350,000	2,200,000
Property, plant, and equipment (net)			1,320,000	1,188,000
Total assets			$4,770,000	$4,355,000
Liabilities
Current liabilities			$440,000	$400,000
Long-term liabilities:
	Mortgage note payable, 8%, due 2021		$100,000	$0
	Bonds payable, 5%, due 2017		1,000,000	1,000,000
		Total long-term liabilities	$1,100,000	$1,000,000
Total liabilities			$1,540,000	$1,400,000
Stockholders' Equity
Preferred $0.75 stock, $10 par			$200,000	$200,000
Common stock, $10 par			100,000	100,000
Retained earnings			2,930,000	2,655,000
	Total stockholders' equity		$3,230,000	$2,955,000
Total liabilities and stockholders' equity			$4,770,000	$4,355,000

Required:

Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

1. Working capital	$
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables		days
6. Inventory turnover
7. Number of days' sales in inventory		days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets		%
14. Rate earned on stockholders' equity		%
15. Rate earned on common stockholders' equity		%
16. Earnings per share on common stock	$
17. Price-earnings ratio
18. Dividends per share of common stock	$
19. Dividend yield		%

rubyalligator806

The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2016.

Bettancort Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
			2016	2015
Retained earnings, January 1			$2,655,000	$2,400,000
Add net income for year			300,000	280,000
Total			$2,955,000	$2,680,000
Deduct dividends:
	On preferred stock		$15,000	$15,000
	On common stock		10,000	10,000
		Total	$25,000	$25,000
Retained earnings, December 31			$2,930,000	$2,655,000

Bettancort Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016	2015
Sales (all on account)	$1,212,000	$1,010,000
Sales returns and allowances	12,000	10,000
Sales	$1,200,000	$1,000,000
Cost of goods sold	500,000	475,000
Gross profit	$700,000	$525,000
Selling expenses	$240,000	$200,000
Administrative expenses	180,000	150,000
Total operating expenses	$420,000	$350,000
Income from operations	$280,000	$175,000
Other income	166,000	225,000
	$446,000	$400,000
Other expense (interest)	66,000	60,000
Income before income tax	$380,000	$340,000
Income tax expense	80,000	60,000
Net income	$300,000	$280,000

Bettancort Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016	Dec. 31, 2015
Assets
Current assets:
	Cash		$450,000	$400,000
	Marketable securities		300,000	260,000
	Accounts receivable (net)		130,000	110,000
	Inventories		67,000	58,000
	Prepaid expenses		153,000	139,000
		Total current assets	$1,100,000	$967,000
Long-term investments			2,350,000	2,200,000
Property, plant, and equipment (net)			1,320,000	1,188,000
Total assets			$4,770,000	$4,355,000
Liabilities
Current liabilities			$440,000	$400,000
Long-term liabilities:
	Mortgage note payable, 8%, due 2021		$100,000	$0
	Bonds payable, 5%, due 2017		1,000,000	1,000,000
		Total long-term liabilities	$1,100,000	$1,000,000
Total liabilities			$1,540,000	$1,400,000
Stockholders' Equity
Preferred $0.75 stock, $10 par			$200,000	$200,000
Common stock, $10 par			100,000	100,000
Retained earnings			2,930,000	2,655,000
	Total stockholders' equity		$3,230,000	$2,955,000
Total liabilities and stockholders' equity			$4,770,000	$4,355,000

Required:

5. Number of days' sales in receivables		days
6. Inventory turnover
7. Number of days' sales in inventory		days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets		%
14. Rate earned on stockholders' equity		%
15. Rate earned on common stockholders' equity		%
16. Earnings per share on common stock	$
17. Price-earnings ratio
18. Dividends per share of common stock	$
19. Dividend yield		%

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