The following financial statements apply to Finch Company: Year 2 Year 1 $219,100 $182,800 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) 124,400 101, 100 19,700 17,700 10,000 9,000 1,700 16,900 146,400 $36,400 Total liabilities and stockholders' equity 1,700 20,100 175,900 $ 43,200 $ 4,800 $ 7,200 2,800 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 54,300 64,300 118, 600 114,900 44,100 Retained earnings Total stockholders' equity 159,000 $277,600 2,800 31,100 94, 100 2,900 138, 100 106,400 $ 38,500 $ 34,200 15,800 16, 200 0 $244,500 50,400 65,300 115,700 114,900 13,900 128,800 $244,500 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.04 and $4.96, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.)
The following financial statements apply to Finch Company: Year 2 Year 1 $219,100 $182,800 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) 124,400 101, 100 19,700 17,700 10,000 9,000 1,700 16,900 146,400 $36,400 Total liabilities and stockholders' equity 1,700 20,100 175,900 $ 43,200 $ 4,800 $ 7,200 2,800 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 54,300 64,300 118, 600 114,900 44,100 Retained earnings Total stockholders' equity 159,000 $277,600 2,800 31,100 94, 100 2,900 138, 100 106,400 $ 38,500 $ 34,200 15,800 16, 200 0 $244,500 50,400 65,300 115,700 114,900 13,900 128,800 $244,500 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.04 and $4.96, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 22MCQ: Comprehensive income: includes transactions that affect stockholders equity with the exception of...
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