Question

The following data is available for Everest Company: Credit Sales                               &nbs

The following data is available for Everest Company:

Credit Sales                                                                                 $1,702

Net Income                                                                                    $112

Total Current Assets                                                                       $366

Total Current Liabilities                                                                  $226

Accounts Receivable, current year                                                   $160

Accounts Receivable, prior year                                                      $156

Total Stockholders' Equity, current year                                          $550

Total Stockholders' Equity, prior year                                              $500

Retained Earnings, current year                                                      $366

Retained Earnings, prior year                                                          $346

Market price per share                                                                     $50

Average Number of Common Shares Outstanding during year            46

Required:

Compute the following ratios:

A) current ratio

B) average collection period in days

C) return on stockholders' equity

D) price-earnings ratio

E) dividend yield

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A. CURRENT RATIO= Current Asset/Current Liability

=366/226 = 1.62 times

B. average collection period in days= Average Receivables*365/Net Credit Sales

=(160+156)/2*365/1702 =34 days

C. return on stockholders' equity= Net income/Shareholders Fund*100

=112*100/(550+336) =12.64%

D.  price-earnings ratio= MPS/EPS

EPS= 112/46 =2.43

price-earnings ratio= 50/2.43 =20.57

E. dividend yield= DPS/EPS

In this problem DPS not given. So dividend yield cant be calculated.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Accounts Receivable Turnover The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars,...
Accounts Receivable Turnover The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue $209,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 Hi-Tech Instruments, Inc. Balance Sheet (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash $18,300 $18,000 Accounts receivable (net) 45,000 40,000 Inventory 39,500 43,700 Total current assets 102,800 101,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 Total assets...
The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per...
The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue $210,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 Hi-Tech Instruments, Inc. Balance Sheet (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash 19,300 $18,000 Accounts receivable (net) 46,000 41,000 Inventory 39,500 43,700 Total current assets 104,800 102,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 Total assets 173,000 $167,000 Liabilities...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash $ 14,550 Marketable securities 7,860 Accounts receivable 12,860 Inventory 10,900 Property and equipment 168,000 Accumulated depreciation (12,900 ) Total assets $ 201,270 Liabilities and Stockholders’ Equity Accounts payable $ 8,090 Current notes payable 3,640 Mortgage payable 4,450 Bonds payable 22,020 Common stock 113,200 Retained earnings 49,870 Total liabilities and stockholders’ equity $ 201,270 The average number of common stock shares outstanding during 2018 was...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash $ 14,550 Marketable securities 7,860 Accounts receivable 12,860 Inventory 10,900 Property and equipment 168,000 Accumulated depreciation (12,900 ) Total assets $ 201,270 Liabilities and Stockholders’ Equity Accounts payable $ 8,090 Current notes payable 3,640 Mortgage payable 4,450 Bonds payable 22,020 Common stock 113,200 Retained earnings 49,870 Total liabilities and stockholders’ equity $ 201,270 The average number of common stock shares outstanding during 2018 was...
Consider the following financial statements for Industrial Supply Company. (Actual) December 31, Balance sheet Year 1...
Consider the following financial statements for Industrial Supply Company. (Actual) December 31, Balance sheet Year 1 Comments Assets Cash $     400,000 20% increase (assumption) Accounts receivable 2,000,000 20% increase (assumption) Inventories 4,400,000 20% increase (assumption)     Total current assets $  6,800,000 Fixed assets, net $  1,200,000 20% increase (assumption)     Total assets (A) $  8,000,000 Liabilities and Equity Accounts payable (CL) $  1,200,000 20% increase (assumption) Notes payable 1,500,000     Total current liabilities $  2,700,000 Long-term debt 500,000 No change (assumption) Stockholders’ equity 4,800,000     Total liabilities and equity $  8,000,000...
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,490,000, with...
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,490,000, with 75 percent of sales sold on credit. STUD CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity Cash $ 38,000 Accounts payable $ 262,000 Accounts receivable 292,000 Accrued taxes 148,000 Inventory 248,000 Bonds payable (long-term) 178,000 Plant and equipment 500,000 Common stock 100,000 Paid-in capital 150,000 Retained earnings 240,000 Total assets $ 1,078,000 Total liabilities and equity $ 1,078,000 Compute the following ratios: (Use a...
KNOX INSTRUMENTS, INC. BALANCE SHEETS (THOUSANDS OF DOLLARS)                                 &
KNOX INSTRUMENTS, INC. BALANCE SHEETS (THOUSANDS OF DOLLARS)                                                                                                 Dec. 31,           Dec. 31,                                                 Assets                                         1993                1992 Cash                                                                                        $   3,000        $   2,900 Accounts Receivable (Net)                                                        28,000          28,800 Inventory                                                                                   64,000          44,000 Plant Assets                                                                               76,000          67,300 Total Assets                                                                           $171,000       $143,000    Liabilities and Stockholder’s Equity Current Liabilities                                                                   $ 45,200          $ 39,750 10% Bonds Payable                                                                   20,000             14,000    Total Liabilities                                                                    $ 65,200          $ 53,750 Common Stock, $10 Par Value                                              $ 40,000          $ 30,000 Retained...
Following is the balance sheet of Munoz Company for Year 3: MUNOZ COMPANY Balance sheet Assets...
Following is the balance sheet of Munoz Company for Year 3: MUNOZ COMPANY Balance sheet Assets Cash $ 15,200 Marketable securities 7,580 Accounts receivable 13,400 Inventory 11,200 Property and equipment 169,500 Accumulated depreciation (12,200 ) Total assets $ 204,680 Liabilities and Stockholders’ Equity Accounts payable $ 8,690 Current notes payable 3,320 Mortgage payable 4,550 Bonds payable 21,240 Common stock 114,400 Retained earnings 52,480 Total liabilities and stockholders’ equity $ 204,680 The average number of common stock shares outstanding during Year...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety...
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,040,000 $ 1,280,000 Marketable securities 0 300,000 Accounts receivable, net 3,020,000 2,120,000 Inventory 3,680,000...
Return on Assets The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars,...
Return on Assets The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue $210,000 Cost of goods sold 125,000 Net income 9,300 Dividends 3,600 Earnings per share 4.65 Hi-Tech Instruments, Inc. Balance Sheet (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash $19,800 $18,000 Accounts receivable (net) 46,000 41,000 Inventory 39,500 43,700 Total current assets 105,300 102,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 Total assets...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT