The comparative financial statements of Bettancort Inc

The comparative financial statements of Bettancort Inc. are as follows. The market priceof Bettancort Inc. common stock was $71.25 on December 31, 2014.Bettancort Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 2014 and 20132014 2013Retained earnings, January 1 . . . $2,655,000 $2,400,000Add net income for year . . . . . . . . 300,000 280,000Total . . . . . . . . . . . . . . . . . . . . . . . $2,955,000 $2,680,000Deduct dividends:On preferred stock . . . . . . . . . . . . .$ 15,000 $ 15,000On common stock. . . . . . . . . . . . . . 10,000 10,000Total . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000 $ 25,000Retained earnings, December 31 . . . . . . . . . . . . …………………………………………………$2,930,000 $2,655,000Bettancort Inc.Comparative Income StatementFor the Years Ended December 31, 2014 and 20132014 2013Sales (all on account) . . . . . . . . $1,212,000 $1,010,000Sales returns and allowances . . . .12,000 10,000Net sales. . . . . . . . . . . . . . . . . . . .$1,200,000 $1,000,000Cost of goods sold. . . . . . . . . . . . .500,000 475,000Gross profit . . . . . . . . . . . . . . . . . .$ 700,000 $ 525,000Selling expenses . . . . . . . . . . . . . $ 240,000 $ 200,000Administrative expenses . . . . . . . 180,000 150,000Total operating expenses . . . . . $ 420,000 $ 350,000Income from operations . . . . . . .$ 280,000 $ 175,000Other income . . . . . . . . . . . . . . . . . 166,000 225,000Other expense (interest) . . . . . . . . . .66,000 60,000Income before income tax . . . . . . . $ 380,000 $ 340,000Income tax expense . . . . . . . . . . . . . . 80,000 60,000Net income . . . . . . . . . . . . . . . . . . . $ 300,000 $ 280,000Bettancort Inc.Comparative Balance SheetDecember 31, 2014 and 2013Dec. 31, 2014 Dec. 31, 2013AssetsCurrent assets:Cash . . . . . . . . . . . . . . . . . . . 450,000 $ 400,000Marketable securities. . . . . .300,000 260,000Accounts receivable (net) . .130,000 110,000Inventories . . . . . . . . . . . . . . . 67,000 58,000Prepaid expenses . . . . . . . . . 153,000 139,000Total current assets . . . . . . $1,100,000 $ 967,000Long-term investments . . . 2,350,000 2,200,000Property, plant, and equipment (net) . . . . . . . . . . . . . ………………………………………….1,320,000 1,188,000Total assets . . . . . . . . . . . . .$4,770,000 $4,355,000LiabilitiesCurrent liabilities . . . . . . . . . . $440,000 $ 400,000Long-term liabilities:Mortgage note payable, 8%, due 2019 . . . . . . . . . . . ……………………………………………$ 100,000 $ 0Bonds payable, 10%, due 2015 . . . . . . . . . . . . . . . . . ……………………………………………1,000,000 1,000,000Total long-term liabilities . . . $1,100,000 $1,000,000Total liabilities . . . . . . . . . . . . $1,540,000 $1,400,000Stockholders’ EquityPreferred $0.75 stock, $10 par ……………………………………………….$ 200,000 $ 200,000Common stock, $10 par. . . . . . . . .100,000 100,000Retained earnings . . . . . . . . . . . 2,930,000 2,655,000Total stockholders’ equity . . . .$3,230,000 $2,955,000Total liabilities and stockholders’ equity . . . . . . . . . . . ……………………………………………….$4,770,000 $4,355,000InstructionsDetermine the following measures for 2014, rounding to one decimal place:1. Working capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days’ sales in receivables6. Inventory turnover7. Number of days’ sales in inventory8. Ratio of fixed assets to long-term liabilities9. Ratio of liabilities to stockholders’ equity10. Number of times interest charges are earned11. Number of times preferred dividends are earned12. Ratio of net sales to assets13. Rate earned on total assets14. Rate earned on stockholders’ equity15. Rate earned on common stockholders’ equity16. Earnings per share on common stock17. Price-earnings ratio18. Dividends per share of common stock19. Dividend yield

Originally posted 2018-07-02 13:53:17. Republished by Blog Post Promoter

The Comparative Financial Statements Of Bettancort Inc

The comparative financial statements of Bettancort Inc. are as follows. The market priceof Bettancort Inc. common stock was $71.25 on December 31, 2014.Bettancort Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 2014 and 20132014 2013Retained earnings, January 1 . . . $2,655,000 $2,400,000Add net income for year . . . . . . . . 300,000 280,000Total . . . . . . . . . . . . . . . . . . . . . . . $2,955,000 $2,680,000Deduct dividends:On preferred stock . . . . . . . . . . . . .$ 15,000 $ 15,000On common stock. . . . . . . . . . . . . . 10,000 10,000Total . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000 $ 25,000Retained earnings, December 31 . . . . . . . . . . . . …………………………………………………$2,930,000 $2,655,000Bettancort Inc.Comparative Income StatementFor the Years Ended December 31, 2014 and 20132014 2013Sales (all on account) . . . . . . . . $1,212,000 $1,010,000Sales returns and allowances . . . .12,000 10,000Net sales. . . . . . . . . . . . . . . . . . . .$1,200,000 $1,000,000Cost of goods sold. . . . . . . . . . . . .500,000 475,000Gross profit . . . . . . . . . . . . . . . . . .$ 700,000 $ 525,000Selling expenses . . . . . . . . . . . . . $ 240,000 $ 200,000Administrative expenses . . . . . . . 180,000 150,000Total operating expenses . . . . . $ 420,000 $ 350,000Income from operations . . . . . . .$ 280,000 $ 175,000Other income . . . . . . . . . . . . . . . . . 166,000 225,000Other expense (interest) . . . . . . . . . .66,000 60,000Income before income tax . . . . . . . $ 380,000 $ 340,000Income tax expense . . . . . . . . . . . . . . 80,000 60,000Net income . . . . . . . . . . . . . . . . . . . $ 300,000 $ 280,000Bettancort Inc.Comparative Balance SheetDecember 31, 2014 and 2013Dec. 31, 2014 Dec. 31, 2013AssetsCurrent assets:Cash . . . . . . . . . . . . . . . . . . . 450,000 $ 400,000Marketable securities. . . . . .300,000 260,000Accounts receivable (net) . .130,000 110,000Inventories . . . . . . . . . . . . . . . 67,000 58,000Prepaid expenses . . . . . . . . . 153,000 139,000Total current assets . . . . . . $1,100,000 $ 967,000Long-term investments . . . 2,350,000 2,200,000Property, plant, and equipment (net) . . . . . . . . . . . . . ………………………………………….1,320,000 1,188,000Total assets . . . . . . . . . . . . .$4,770,000 $4,355,000LiabilitiesCurrent liabilities . . . . . . . . . . $440,000 $ 400,000Long-term liabilities:Mortgage note payable, 8%, due 2019 . . . . . . . . . . . ……………………………………………$ 100,000 $ 0Bonds payable, 10%, due 2015 . . . . . . . . . . . . . . . . . ……………………………………………1,000,000 1,000,000Total long-term liabilities . . . $1,100,000 $1,000,000Total liabilities . . . . . . . . . . . . $1,540,000 $1,400,000Stockholders EquityPreferred $0.75 stock, $10 par ……………………………………………….$ 200,000 $ 200,000Common stock, $10 par. . . . . . . . .100,000 100,000Retained earnings . . . . . . . . . . . 2,930,000 2,655,000Total stockholders equity . . . .$3,230,000 $2,955,000Total liabilities and stockholders equity . . . . . . . . . . . ……………………………………………….$4,770,000 $4,355,000InstructionsDetermine the following measures for 2014, rounding to one decimal place:1. Working capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days sales in receivables6. Inventory turnover7. Number of days sales in inventory8. Ratio of fixed assets to long-term liabilities9. Ratio of liabilities to stockholders equity10. Number of times interest charges are earned11. Number of times preferred dividends are earned12. Ratio of net sales to assets13. Rate earned on total assets14. Rate earned on stockholders equity15. Rate earned on common stockholders equity16. Earnings per share on common stock17. Price-earnings ratio18. Dividends per share of common stock19. Dividend yield