Question

Problem 13-23A Ratio analysis LO 13-2, 13-3, 13-4, 13-5

The following financial statements apply to Robin Company.

	2015			2014
Revenues
Net sales	$	210,100		$	176,300
Other revenues		9,000			6,300
Total revenues		219,100			182,600
Expenses
Cost of goods sold		125,900			102,800
Selling expenses		20,300			18,300
General and administrative expenses		10,400			9,400
Interest expense		1,800			1,800
Income tax expense		19,200			16,300
Total expenses		177,600			148,600
Earnings from continuing operations      before extraordinary items		41,500			34,000
Extraordinary gain (net of $1,800 tax)		2,100			0
Net income	$	43,600		$	34,000
Assets
Current assets
Cash	$	6,000		$	8,000
Marketable securities		1,400			1,400
Accounts receivable		36,900			31,000
Inventories		100,400			95,300
Prepaid expenses		3,600			2,600
Total current assets		148,300			138,300
Plant and equipment (net)		105,800			105,800
Intangibles		20,700			0
Total assets	$	274,800		$	244,100
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Accounts payable	$	38,000		$	55,400
Other		15,800			16,300
Total current liabilities		53,800			71,700
Bonds payable		65,200			66,200
Total liabilities		119,000			137,900
Stockholders’ equity
Common stock (46,000 shares)		113,700			113,700
Retained earnings		42,100			(7,500	)
Total stockholders’ equity		155,800			106,200
Total liabilities and stockholders’ equity	$	274,800		$	244,100

e.	Price-earnings ratio (market prices at the end of 2014 and 2015 were $5.99 and $4.90, respectively). (Round intermediate calculations and final answers to 2 decimal places.)

  

f.	Book value per share of common stock. (Round your answers to 2 decimal places.)

  

g.	Times interest earned. (Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. Round your answers to 2 decimal place.)

  

h.	Working capital.

  

i.	Current ratio. (Round your answers to 2 decimal places.)

  

j.	Quick (acid-test) ratio. (Round your answers to 2 decimal places.)

k.	Accounts receivable turnover. (Round your answers to 2 decimal places.)

  

l.	Inventory turnover. (Round your answers to 2 decimal places.)

   

m.	Debt to equity ratio. (Round your answers to 2 decimal places.)

   

n.	Debt to assets ratio. (Round final answers to the nearest whole percent.)

Answer 1