Reference no: EM13214745
Ratio computation. The financial statements of the Lone Pine Company follow.
LONE PINE COMPANY
Comparative Balance Sheets
December 31, 20X2 and 20X1 ($000 Omitted)
20X2 20X1
Assets
Current Assets
Cash and Short-Term Investments $400 $600
Accounts Receivable (net) 3,000 2,400
Inventories 3,000 2,300
Total Current Assets $6,400 $5,300
Property, Plant, and Equipment
Land $1,700 $500
Buildings and Equipment (net) 1,500 1,000
Total Property, Plant, and Equipment $3,200 $1,500
Total Assets $9,600 $6,800
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $2,800 $1,700
Notes Payable 1,100 1,900
Total Current Liabilities $3,900 $3,600
Long-Term Liabilities
Bonds Payable 4,100 2,100
Total Liabilities $8,000 $5,700
Stockholders' Equity
Common Stock $200 $200
Retained Earnings 1,400 900
Total Stockholders' Equity $1,600 $1,100
Total Liabilities and Stockholders' Equity $9,600 $6,800
LONE PINE COMPANY
Statement of Income and Retained Earnings
For the Year Ending December 31,20X2 ($000 Omitted)
Net Sales* $36,000
Less: Cost of Goods Sold $20,000
Selling Expense 6,000
Administrative Expense 4,000
Interest Expense 400
Income Tax Expense 2,000 32,400
Net Income $3,600
Retained Earnings, Jan. 1 900
Ending Retained Earnings $4,500
Cash Dividends Declared and Paid 3,100
Retained Earnings, Dec. 31 $1,400
*All sales are on account.
Instructions
Compute the following items for Lone Pine Company for 20X2, rounding all calculations to two decimal places when necessary:
a. Quick ratio
b. Current ratio
c. Inventory-turnover ratio
d. Accounts-receivable-turnover ratio
e. Return-on-assets ratio
f. Net-profit-margin ratio
g. Return-on-common-stockholders' equity
h. Debt-to-total assets
i. Number of times that interest is earned
|
Compute the npv if you sell the old machine
: Calculate the NPV if you sell the old machine and buy new machine A. (Round up to the nearest dollar amount. DO NOT use $, commas, or decimal points) (Example $23,345.50 is entered as 23346)
|
|
What are some of the gains from economic integration
: Despite the tremendous economic strides made during our current era of globalization, our world is split largely between those who have benefited greatly from globalization and those who have not (many of whom have actually been hurt by it).
|
|
How to prepare journal entries to record the transactions
: 20-Aug: Issued a $50,000 note to Harris Motors for the purchase of a $50,000 delivery truck. The note is due in 180 days and carries a 12% interest rate. 10-Sep: Purchased merchandise from Pans Enterprises in the amount of $15,000.
|
|
Calculate the nominal interest rate
: Suppose the fisher hypothesis holds for an economy that has an expected real interest rate of 2 percent. For each of the expected inflation rates of 0,2,4,6, and 8 percent, calculate the nominal interest rate and the after tax expected real intere..
|
|
Find return-on-assets ratio and net-profit-margin ratio
: LONE PINE COMPANY Statement of Income and Retained Earnings For the Year Ending December 31,20X2 ($000 Omitted) Net Sales* $36,000 Less: Cost of Goods Sold $20,000 Selling Expense 6,000 Administrative Expense 4,000 Interest Expense 400
|
|
What was the incentive system
: Include in your discussion your assessment of this organizational architecture structure and suggestions on how it might be improved.
|
|
Explain what is securitization
: What is securitization? What are the benefits that banks can get from it? What impact is securitization likely to have on the quality of assets that banks keep in their portfolio?
|
|
Describe how to do prepare a horizontal analysis
: Horizontal analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow. 20X2 20X1 Current Assets $86,000 $80,000 Property, Plant, and Equipment (net) 99,000 90,000
|
|
Explain site analysis performed by a consulting firm
: The site analysis performed by a consulting firm (at a cost of $50,000 to General Food) shows that the land is suitable for the plant. The plant will cost $5.5 million to build.
|