question archive Ampex Corporation, Comparative Balance Sheets, December 31, 2011, and 2012 (in thousands of dollars) Assets 2012 2011 Current assets: Cash $ 20 $ 30 Accounts receivable (net) 95 95 Inventory 130 110 Total current assets $ 245 $ 235 Fixed assets: Land $ 1 0 $ 10 Building and equipment (net) 120 100 Total fixed assets (net) $130 $110 Other assets : Goodwill and organization costs $ 10 $ 10 Total assets $385 $355 Liabilities and Stockholder’s Equity Current liabilities: Accounts payable $ 50 $ 40 Estimated inc ome taxes payable 10 10 Total current liabilities $ 60 $ 50 Fixed liabilities: Mortgage bonds, 10 percent $ 50 $ 50 Total liabilities $110 $100 Stockholders’ equity: Convertible preferred stock, 5 percent $ 20 $ 20 Common stock (10,000 shares outstanding) 50 50 Retained earnings 205 185 Total stockholders’ equity $275 $255 Total liabilities and stockholders’ equity $385 $355 Part B Ampex Corporation Condensed Income Statement, 2012 (in thousands of dollars) Gross sales $11,516 100
Ampex Corporation, Comparative Balance Sheets, December 31, 2011, and 2012 (in thousands of dollars) Assets 2012 2011 Current assets: Cash $ 20 $ 30 Accounts receivable (net) 95 95 Inventory 130 110 Total current assets $ 245 $ 235 Fixed assets: Land $ 1 0 $ 10 Building and equipment (net) 120 100 Total fixed assets (net) $130 $110 Other assets : Goodwill and organization costs $ 10 $ 10 Total assets $385 $355 Liabilities and Stockholder’s Equity Current liabilities: Accounts payable $ 50 $ 40 Estimated inc ome taxes payable 10 10 Total current liabilities $ 60 $ 50 Fixed liabilities: Mortgage bonds, 10 percent $ 50 $ 50 Total liabilities $110 $100 Stockholders’ equity: Convertible preferred stock, 5 percent $ 20 $ 20 Common stock (10,000 shares outstanding) 50 50 Retained earnings 205 185 Total stockholders’ equity $275 $255 Total liabilities and stockholders’ equity $385 $355 Part B Ampex Corporation Condensed Income Statement, 2012 (in thousands of dollars) Gross sales $11,516 100
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Ampex Corporation, Comparative Balance Sheets, December 31, 2011, and 2012 (in thousands of dollars) Assets 2012 2011 Current assets: Cash $ 20 $ 30 Accounts receivable (net) 95 95 Inventory 130 110 Total current assets $ 245 $ 235 Fixed assets: Land $ 1 0 $ 10 Building and equipment (net) 120 100 Total fixed assets (net) $130 $110 Other assets : Goodwill and organization costs $ 10 $ 10 Total assets $385 $355 Liabilities and Stockholder’s Equity Current liabilities: Accounts payable $ 50 $ 40 Estimated inc ome taxes payable 10 10 Total current liabilities $ 60 $ 50 Fixed liabilities: Mortgage bonds, 10 percent $ 50 $ 50 Total liabilities $110 $100 Stockholders’ equity: Convertible preferred stock, 5 percent $ 20 $ 20 Common stock (10,000 shares outstanding) 50 50 Retained earnings 205 185 Total stockholders’ equity $275 $255 Total liabilities and stockholders’ equity $385 $355 Part B Ampex Corporation Condensed Income Statement, 2012 (in thousands of dollars) Gross sales $11,516 100.66% Less: Returns and allowances 10 0.66 Net sales $ 1,506 100.00% Less: Cost of goods sold 1,004 66.67 Gross profit $ 502 33.33% Operating expenses 400 26.56 Operating profit $ 102 6.77% Interest 5 0.33 % Profit before taxes 97 6.44% Income tax expense 47 3.12 Net income $ 50 3.32% Less: Preferred dividends 1 0.07 Common dividends 29 1.93 Change in retained earnings $ 20 1.32% Question # 1 : Provide an answer for the following ratios: (Hint : rem ember the state ment is in thousands, therefore “10 ” would be “10,000) Current ratio Acid Test ratio Times Interest earned ratio Debt to equity ratio Inventory turnover ratio Asset turnover ratio Gross margin ratio Profit margin ratio Question # 2: (a) Performing a ho rizontal analysis , with 2012 as the base year, on th e balance sheet , what is the percentage change for cash? (b) Performing a vertical analysis , with 2012 as the base year, what is the percentage change for total assets?
