- Financial statements for Kinder Corporation are presentedbelow.
KINDER CORPORATION
Comparative Balance Sheet
December 31
2015 2014
Assets
Cash................................................................................................... $ 4,000 $6,000
Accounts receivable(net).................................................................. 16,000 12,000
Inventory............................................................................................ 20,000 18,000
Land................................................................................................... 28,000 8,000
Equipment.......................................................................................... 62,000 60,000
Accumulateddepreciation—equipment............................................ (20,000) (14,000)
Totalassets.................................................................................. $110,000 $90,000
Liabilities and Stockholders' Equity
Accountspayable.............................................................................. $10,000 $16,000
Long-term notespayable................................................................... 34,000 19,000
Common stock ($10 parvalue)......................................................... 50,000 50,000
Retainedearnings.............................................................................. 16,000 5,000
Total liabilities andstockholders' equity...................................... $110,000 $90,000
KINDER CORPORATION
Income Statement
For the year ended December 31, 2015
Sales revenue..................................................................................................... $370,000
Less: Sales returns and allowances................................................................... 10,000
Net sales............................................................................................................. $360,000
Cost of goods sold.............................................................................................. 275,000
Gross profit......................................................................................................... 85,000
Operating expenses........................................................................................... 40,000
Income before income taxes.............................................................................. 45,000
Income tax expense........................................................................................... 18,000
Net income.......................................................................................................... $ 27,000
Additional Information: All sales were on account. The marketprice of Kinder's common stock was $42 on December 31, 2015, 5000shares of common stock issued and outstanding.
- Compute the indicated ratios at December 31, 2015, or for theyear ended December 31, 2015, as appropriate. Report answers to twodecimal places.
1. Return on assets is______________________________________________________.
2. Acid-test ratio is________________________________________________________.
3. Profit margin___________________________________________________________.
4. Payout ratio is__________________________________________________________.
5. Debt to assets ratio is____________________________________________________.
6. Asset turnover is________________________________________________________.
7. Accounts receivable turnover is____________________________________________.
8. Price-earnings ratio is____________________________________________________.
9. Current ratio is__________________________________________________________.
10.Debit toEquity___________________________________________________________
11.Inventory Turnover and Days in Inventory_____________________________________
12.Earnings per share______________________________________________________
13.Accounts Receivable Turnover and Days in Sales______________________________
