The condensed financial statements of Marks Company for the years 2014-2015 are presented below: Marks Company Comparative...

90.2K

Verified Solution

Question

Accounting

The condensed financial statements of Marks Company for theyears 2014-2015 are presented below:

Marks Company Comparative Balance Sheets As of December 31, 2014and 2015

2015    2014

   Cash $367,000 $134,000

Accounts receivable (net) 373,000    308,000

   Inventories 379,000    342,000

   Plant and equipment 1,850,000 1,116,000

Accumulated depreciation (263,000 ) (192,000 )

   $2,706,000 $1,708,000

   Accounts payable $342,000 $163,000

Dividends payable -0-    43,000

   Bonds payable 400,000    -0-

Common stock ($10 par) 1,523,000 1,220,000

   Retained earnings 441,000    282,000

   $2,706,000 $1,708,000

Additional data:

Market value of stock at 12/31/15 is $80 per share.

Marks sold 35,000 shares of common stock at par on July 1,2015.

Marks Company Condensed Income Statement For the Year EndedDecember 31, 2015

Sales revenue $2,428,000

Cost of goods sold 1,649,000

Gross profit 779,000

Administrative and selling expenses 500,000

Net income $279,000

Compute the following financial ratios by placing the properamounts for numerators and denominators. (Round per unit answers to2 decimal places, e.g. 52.75.)

(a) Current ratio at 12/31/15

(b) Acid test ratio at 12/31/15

(c) Accounts receivable turnover in 2015

(d) Inventory turnover in 2015

(e) Profit margin on sales in 2015

(f) Earnings per share in 2015

(g) Return on common stock equity in 2015

(h) Price earnings ratio at 12/31/15

(i) Debt to assets at 12/31/15

(j) Book value per share at 12/31/15

Answer & Explanation Solved by verified expert
4.0 Ratings (663 Votes)
Calculations of ratios Current Ratio current assets currrent laibility current assets cash accounts receviableinventories current assets cash accounts receviableinventories Current Assets 3670003730003790001119000 current lability accounts payable 342000    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students