question archive The following financial statements apply to Robin Company
The following financial statements apply to Robin Company
Subject:AccountingPrice: Bought3
The following financial statements apply to Robin Company.20152014 Revenues Net sales$210,000$175,000 Other revenues4,0005,000 Total revenues214,000180,000 Expenses Cost of goods sold126,000103,000 Selling expenses21,00019,000 General and administrative expenses11,00010,000 Interest expense3,0003,000 Income tax expense21,00018,000 Total expenses182,000153,000 Earnings from continuing operations before extraordinary items32,00027,000 Extraordinary gain (net of $3,000 tax)4,0000 Net income$36,000$27,000 Assets Current assets Cash$4,000$8,000 Marketable securities1,0001,000 Accounts receivable35,00032,000 Inventories100,00096,000 Prepaid expenses3,0002,000 Total current assets143,000139,000 Plant and equipment (net)105,000105,000 Intangibles20,0000 Total assets$268,000$244,000 Liabilities and Stockholders’ Equity Liabilities Current liabilities Accounts payable$40,000$54,000 Other17,00015,000 Total current liabilities57,00069,000 Bonds payable66,00067,000 Total liabilities123,000136,000 Stockholders’ equity Common stock (50,000 shares)115,000115,000 Retained earnings30,000(7,000) Total stockholders’ equity145,000108,000 Total liabilities and stockholders’ equity$268,000$244,000RequiredCalculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculations.a.Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) b.Return on investment. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) c.Return on equity. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) d.Earnings per share. (Round your answers to 2 decimal places.) e.Price-earnings ratio (market prices at the end of 2014 and 2015 were $5.94 and $4.77, 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 places.) 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. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places.) l.Inventory turnover. (Since 2013 numbers are not presented do not use averages when calculating the ratios for 2014. Instead, use the number presented on the 2014 balance sheet. Round your answers to 2 decimal places.)
