The following financial statements apply to Munoz Company: 2019 2018 Revenues Net sales $ 210,800 $ 176,600 Other revenues 9,500 7,000 Total revenues 220,300 183,600 Expenses Cost of goods sold 124,200 101,800 Selling expenses 20,100 18,100 General...

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Accounting

The following financial statements apply to Munoz Company:
2019 2018
Revenues
Net sales $ 210,800 $ 176,600
Other revenues 9,500 7,000
Total revenues 220,300 183,600
Expenses
Cost of goods sold 124,200 101,800
Selling expenses 20,100 18,100
General and administrative expenses 9,300 8,300
Interest expense 2,700 2,700
Income tax expense 19,100 17,500
Total expenses 175,400 148,400
Net income $ 44,900 $ 35,200
Assets
Current assets
Cash $ 4,100 $ 7,000
Marketable securities 2,000 2,000
Accounts receivable 36,700 30,800
Inventories 100,000 94,700
Prepaid expenses 3,700 2,700
Total current assets 146,500 137,200
Plant and equipment (net) 105,100 105,100
Intangibles 20,600 0
Total assets $ 272,200 $ 242,300
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Accounts payable $ 39,800 $ 54,400
Other 15,100 15,600
Total current liabilities 54,900 70,000
Bonds payable 64,500 65,500
Total liabilities 119,400 135,500
Stockholders’ equity
Common stock (50,000 shares) 114,700 114,700
Retained earnings 38,100 (7,900 )
Total stockholders’ equity 152,800 106,800
Total liabilities and stockholders’ equity $ 272,200 $ 242,300
Required
Calculate the following ratios for 2018 and 2019. Since 2017numbers are not presented do not use averages when calculating theratios for 2018. Instead, use the number presented on the 2018balance sheet.
Net margin. (Round your answers to 2 decimal places.)
Return on investment. (Round your answers to 2 decimalplaces.)
Return on equity. (Round your answers to 2 decimalplaces.)
Earnings per share. (Round your answers to 2 decimalplaces.)
Price-earnings ratio (market prices at the end of 2018 and 2019were $6.06 and $4.84, respectively). (Round your intermediatecalculations and final answers to 2 decimal places.)
Book value per share of common stock. (Round your answers to 2decimal places.)
Times interest earned. Exclude extraordinary income in thecalculation as they cannot be expected to recur and, therefore,will not be available to satisfy future interest payments. (Roundyour answers to 2 decimal places.)
Working capital.
Current ratio. (Round your answers to 2 decimal places.)
Quick (acid-test) ratio. (Round your answers to 2 decimalplaces.)
Accounts receivable turnover. (Round your answers to 2 decimalplaces.)
Inventory turnover. (Round your answers to 2 decimalplaces.)
Debt to equity ratio. (Round your answers to 2 decimalplaces.)
Debt to assets ratio. (Round your answers to the nearest wholepercent.)
2019 2018
a. Net margin % %
b. Return on investment % %
c. Return on equity % %
d. Earnings per share
e. Price-earnings ratio times times
f. Book value
g. Interest earned times times
h. Working capital
i. Current ratio
j. Quick (acid-test) ratio
k. Accounts receivable turnover times times
l. Inventory turnover times times
m. Debt to equity ratio
n. Debt to assets ratio % %

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3.8 Ratings (436 Votes)

net margin net incomenet sales100 2019 2018 net income 44900 35200 net sales 210800 176600 ratio 2130 1993 return on equity net income shareholders equity 2019 2018 net income 44900 35200 total shareholders equity 152800 106800 ratio 2938 3296 earnings per share net income preferred dividends weighted average shares outstanding 2019 2018 net income 44900 35200 preferred dividends 0 0 number of shares outstanding 50000 50000 ratio per share 090 070 See Answer

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The following financial statements apply to Munoz Company:20192018RevenuesNet sales$210,800$176,600Other revenues9,5007,000Total revenues220,300183,600ExpensesCost of goods sold124,200101,800Selling expenses20,10018,100General and administrative expenses9,3008,300Interest expense2,7002,700Income tax expense19,10017,500Total expenses175,400148,400Net income$44,900$35,200AssetsCurrent assetsCash$4,100$7,000Marketable securities2,0002,000Accounts receivable36,70030,800Inventories100,00094,700Prepaid expenses3,7002,700Total current assets146,500137,200Plant and equipment (net)105,100105,100Intangibles20,6000Total assets$272,200$242,300Liabilities and Stockholders’ EquityLiabilitiesCurrent liabilitiesAccounts payable$39,800$54,400Other15,10015,600Total current liabilities54,90070,000Bonds payable64,50065,500Total liabilities119,400135,500Stockholders’ equityCommon stock (50,000 shares)114,700114,700Retained earnings38,100(7,900)Total stockholders’ equity152,800106,800Total liabilities and stockholders’ equity$272,200$242,300RequiredCalculate the following ratios for 2018 and 2019. Since 2017numbers are not presented do not use averages when calculating theratios for 2018. Instead, use the number presented on the 2018balance sheet.Net margin. (Round your answers to 2 decimal places.)Return on investment. (Round your answers to 2 decimalplaces.)Return on equity. (Round your answers to 2 decimalplaces.)Earnings per share. (Round your answers to 2 decimalplaces.)Price-earnings ratio (market prices at the end of 2018 and 2019were $6.06 and $4.84, respectively). (Round your intermediatecalculations and final answers to 2 decimal places.)Book value per share of common stock. (Round your answers to 2decimal places.)Times interest earned. Exclude extraordinary income in thecalculation as they cannot be expected to recur and, therefore,will not be available to satisfy future interest payments. (Roundyour answers to 2 decimal places.)Working capital.Current ratio. (Round your answers to 2 decimal places.)Quick (acid-test) ratio. (Round your answers to 2 decimalplaces.)Accounts receivable turnover. (Round your answers to 2 decimalplaces.)Inventory turnover. (Round your answers to 2 decimalplaces.)Debt to equity ratio. (Round your answers to 2 decimalplaces.)Debt to assets ratio. (Round your answers to the nearest wholepercent.)20192018a.Net margin%%b.Return on investment%%c.Return on equity%%d.Earnings per sharee.Price-earnings ratiotimestimesf.Book valueg.Interest earnedtimestimesh.Working capitali.Current ratioj.Quick (acid-test) ratiok.Accounts receivable turnovertimestimesl.Inventory turnovertimestimesm.Debt to equity ration.Debt to assets ratio%%

	2019		2018
Revenues
Net sales	$	210,800	$	176,600
Other revenues		9,500		7,000
Total revenues		220,300		183,600
Expenses
Cost of goods sold		124,200		101,800
Selling expenses		20,100		18,100
General and administrative expenses		9,300		8,300
Interest expense		2,700		2,700
Income tax expense		19,100		17,500
Total expenses		175,400		148,400
Net income	$	44,900	$	35,200
Assets
Current assets
Cash	$	4,100	$	7,000
Marketable securities		2,000		2,000
Accounts receivable		36,700		30,800
Inventories		100,000		94,700
Prepaid expenses		3,700		2,700
Total current assets		146,500		137,200
Plant and equipment (net)		105,100		105,100
Intangibles		20,600		0
Total assets	$	272,200	$	242,300
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Accounts payable	$	39,800	$	54,400
Other		15,100		15,600
Total current liabilities		54,900		70,000
Bonds payable		64,500		65,500
Total liabilities		119,400		135,500
Stockholders’ equity
Common stock (50,000 shares)		114,700		114,700
Retained earnings		38,100		(7,900	)
Total stockholders’ equity		152,800		106,800
Total liabilities and stockholders’ equity	$	272,200	$	242,300

		2019		2018
a.	Net margin		%		%
b.	Return on investment		%		%
c.	Return on equity		%		%
d.	Earnings per share
e.	Price-earnings ratio		times		times
f.	Book value
g.	Interest earned		times		times
h.	Working capital
i.	Current ratio
j.	Quick (acid-test) ratio
k.	Accounts receivable turnover		times		times
l.	Inventory turnover		times		times
m.	Debt to equity ratio
n.	Debt to assets ratio		%		%