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Question: The comparative financial statements of Stargel

The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2.
The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2.



Instructions
Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts:
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days’ sales in receivables
6. Inventory turnover
7. Number of days’ sales in inventory
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders’ equity
10. Times interest earned
11. Asset turnover
12. Return on total assets
13. Return on stockholders’ equity
14. Return on common stockholders’ equity
15. Earnings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield

The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2.



Instructions
Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts:
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days’ sales in receivables
6. Inventory turnover
7. Number of days’ sales in inventory
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders’ equity
10. Times interest earned
11. Asset turnover
12. Return on total assets
13. Return on stockholders’ equity
14. Return on common stockholders’ equity
15. Earnings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield
Instructions Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days’ sales in receivables 6. Inventory turnover 7. Number of days’ sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders’ equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders’ equity 14. Return on common stockholders’ equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield





Transcribed Image Text:

Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1. $5,375,000 $4,545,000 Net income 900,000 925,000 Total $6,275,000 $5470,000 Dividends: Preferred stock dividends.. $ 45,000 $ 45,000 Common stock dividends. 50,000 50,000 Total dividends..... $ 95,000 $ 95,000 Retained earnings, December 31 $6,180,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales .... $10,000,000 $9,400,000 Cost of goods sold.. Gross profit .. 5,350,000 $ 4,650,000 $ 2,000,000 1,500,000 $ 3,500,000 $ 1,150,000 150,000 $ 1,300,000 4,950,000 $4,450,000 $1,880,000 ... Selling expenses Administrative expenses. Total operating expenses Income from operations 1,410,000 $3,290,000 $1,160,000 Other revenue 140,000 $1,300,000 Other expense (Interest) .. 170,000 150,000 $ 1,130,000 230,000 $ 900,000 Income before income tax $1,150,000 Income tax expense.. 225,000 $ 925,000 Net income .. Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Υ1 Assets Current assets: Cash ... Marketable securities.. $ 500,000 $ 400,000 1,010,000 1,000,000 Accounts receivable (net) 740,000 510,000 Inventories .... 1,190,000 250,000 $3,690,000 950,000 Prepald expenses 229,000 $3,089,000 Total current assets.. Long-term investments.. Property, plant, and equipment (net) 2,350,000 2,300,000 3,740,000 3,366,000 $8,755,000 Total assets ... $9,780,000 Liabilities Current liabilities... $ 900,000 $ 880,000 Long-term liabilities: Mortgage note payable, 10%. Bonds payable, 10%.... Total long-term llabilities $ 200,000 $ 1,500,000 $1,700,000 $2,600,000 1,500,000 $1,500,000 $2,380,000 Total liabilities . Stockholders' Equity Preferred $0.90 stock, $10 par. Common stock, $5 par. $ 500,000 $ 500,000 . 500,000 500,000 Retained earnings... Total Stockholders' Equity.. Total liabilitles and stockholders' equity... 6,180,000 $7,180,000 5,375,000 $6,375,000 $8,755,000 $9,780,000


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