Hcs 380-The Condensed Financial Statements Of Elliott Company For The Years

Exercise 13-13The condensed financial statements of Elliott Company for the years 2013 and 2014 are presented below. ELLIOTT COMPANYBalance SheetsDecember 31 (in thousands)20142013Current assets Cash and cash equivalents$330$360 Accounts receivable (net)618548 Inventory650580 Prepaid expenses130160 Total current assets1,7281,648Property, plant, and equipment (net)410380Investments158158Intangibles and other assets530510 Total assets$2,826$2,696Current liabilities$968$938Long-term liabilities670570Stockholders’ equity—common1,1881,188 Total liabilities and stockholders’ equity$2,826$2,696ELLIOTT COMPANYIncome StatementsFor the Year Ended December 31 (in thousands)20142013Sales revenue$3,990$3,650Costs and expenses Cost of goods sold1,1181,038 Selling & administrative expenses2,4002,330 Interest expense1020 Total costs and expenses3,5283,388Income before income taxes462262Income tax expense185105Net income$ 277$ 157Compute the following ratios for 2014 and 2013. (Round all answers to 2 decimal places, e. g. 1. 83 or 12. 61%. )(a)Current ratio. (b)Inventory turnover. (Inventory on December 31, 2012, was $400. )(c)Profit margin. (d)Return on assets. (Assets on December 31, 2012, were $2,160. )(e)Return on common stockholders’ equity. (Equity on December 31, 2012, was $980. )(f)Debt to assets ratio. (g)Times interest earned. 20142013Current ratio. 1. 78 : 11. 75 : 1Inventory turnover. 1. 721. 89Profit margin. % %Return on assets. % %Return on common stockholders’ equity. % %Debt to assets ratio. % %Times interest earned. times

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