This paper circulates around the core theme of Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.)(Round earnings per share, current ratio and acid-test ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
The comparative statements of Villa Tool Company are presented below.
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VILLA TOOL COMPANY |
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Income Statement |
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For the Year Ended December 31
|
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|
2012 |
|
2011 |
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Net sales |
$1,818,500 |
|
$1,750,500 |
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Cost of goods sold |
1,011,500
|
|
996,000
|
| |
Gross profit |
807,000 |
|
754,500 |
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Selling and administrative expense |
516,000
|
|
479,000
|
| |
Income from operations |
291,000 |
|
275,500 |
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Other expenses and losses |
|
|
|
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Interest expense |
18,000
|
|
14,000
|
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Income before income taxes |
273,000 |
|
261,500 |
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Income tax expense |
81,000
|
|
77,000
|
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Net income |
$ 192,000
|
|
$ 184,500
|
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|
|
|
|
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VILLA TOOL COMPANY |
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Balance Sheets |
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December 31
|
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Assets |
2012 |
|
2011 |
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Current assets |
|
|
|
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Cash |
$ 60,100 |
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$ 64,200 |
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Short-term investments |
69,000 |
|
50,000 |
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Accounts receivable (net) |
117,800 |
|
102,800 |
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Inventory |
123,000
|
|
115,500
|
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Total current assets |
369,900
|
|
332,500
|
| |
Plant assets (net) |
600,300
|
|
520,300
|
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Total assets |
$970,200
|
|
$852,800
|
| |
|
|
|
|
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Liabilities and Stockholders’ Equity |
|
|
|
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Current liabilities |
|
|
|
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Accounts payable |
$160,000 |
|
$145,400 |
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Income taxes payable |
43,500
|
|
42,000
|
| |
Total current liabilities |
203,500
|
|
187,400
|
| |
Bonds payable |
200,000
|
|
200,000
|
| |
Total liabilities |
403,500
|
|
387,400
|
| |
Stockholders’ equity |
|
|
|
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Common stock ($5 par) |
280,000 |
|
300,000 |
| |
Retained earnings |
286,700
|
|
165,400
|
| |
Total stockholders’ equity |
566,700
|
|
465,400
|
| |
Total liabilities and stockholders’ equity |
$970,200
|
|
$852,800
|
Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.)(Round earnings per share, current ratio and acid-test ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.)
(a)Earnings per share$(b)Return on common stockholders’ equity%(c)Return on assets%(d)Current:1(e)Acid-test:1(f)Receivables turnovertimes(g)Inventory turnovertimes(h)Times interest earnedtimes(i)Asset turnovertimes(j)Debt to total assets%
