saint MBA560 graded homework 5 (Feb 2014)

Problem 9-23Ratio analysis

Required

Use the financial statements for Bernard
Company from Problem 9-22 to calculate
the following for 2012 and 2011.

a. Working capital

b. Current ratio

c. Quick ratio

d. Accounts receivable turnover (beginning
receivables at January 1, 2011, were
$47,000)

e. Average number of days to collect
accounts receivable

f. Inventory turnover (beginning inventory
at January 1, 2011, was $140,000)
(Edmonds. Survey of Accounting. 2012)

g. Average number of days to sell inventory

h. Debt to assets ratio

i. Debt to equity ratio

j. Times interest earned

k. Plant assets to long-term debt

l. Net margin

m. Asset turnover

n. Return on investment

o. Return on equity

p. Earnings per share

q. Book value per share of common stock

r. Price-earnings ratio (market price per share:
2011, $11.75; 2012, $12.50)

s. Dividend yield on common stock

Problem
10-21 Product versus general, selling,
and administrative costs

The following transactions pertain to 2012,
the first year of operations of Hall Company.
All inventory was started and completed during 2012. Assume that all transactions are cash transactions.

1. Acquired $4,000 cash by issuing common
stock.

2. Paid $720 for materials used to produce
inventory.

3. Paid $1,800 to production workers.

4. Paid $540 rental fee for production
equipment.

5. Paid $180 to administrative employees.

6. Paid $144 rental fee for administrative
office equipment.

7. Produced 300 units of inventory of which
200 units were sold at a price of $12 each.

Required

Prepare an income statement, balance sheet,
and statement of cash flows.