Reference no: EM131132506

Using the financial statements for the Niara Calendar Company, calculate the 13 basic ratios found in the chapter.

NIARA ENTERPRISES

BALANCE SHEET

DECEMBER 31, 2008

Current assets:

Cash ............... $25,000

Marketable securities ........ 45,000

Accounts receivable (net)....... 122,000

Inventory ............. 155,000

Total current assets........ $347,000

Investments.............. 20,000

Plant and equipment......... 475,000

Less: Accumulated depreciation..... (100,000)

Net plant and equipment...... 375,000

Total assets............ $742,000

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable.......... $65,000

Notes payable............. 20,000

Accrued taxes........... 12,000

Total current liabilities....... 97,000

Long-term liabilities:

Bonds payable........... 150,000

Total liabilities.......... 247,000

Stockholders' equity preferred 

stock, $100 par value......... 75,000

Common stock, $1 par value...... 50,000

Capital paid in excess of par....... 250,000

Retained earnings........... 120,000

Total stockholders' equity.... 495,000

Total liabilities and stockholders' equity..$742,000

 

NIARA ENTERPRISES

INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2008

Sales (on credit) ........... $2,200,000

Less: Cost of goods sold........ 1,300,000

Gross profit............. 900,000

Less: Selling and administrative expenses. 400,000

Operating profit (EBIT)......... 500,000

Less: Interest expense......... 25,000

Earnings before taxes (EBT)....... 475,000

Less: Taxes.............. 190,000

Earnings after taxes (EAT)....... $285,000

*Includes $10,000 in lease payments.