Use the financial statements for Bernard Company from Problem 9-22 to calculate
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)
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 ling-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
Assets 2012 2011
Current Assets
Cash $16,000 $12,000
Marketable securities 20,000 6,000
Accounts receivable (net) 54,000 46,000
Inventories 135,000 143,000
Prepaid items 25,000 10,000
Total current assets $250,000 $217,000
Investment 27,000 20,000
Plant (net) 270,000 255,000
Land 29,000 24,000
Total assets $576,000 $516,000
Liabilities and Stockholder’s Equity
Liabilities
Current liabilities
Notes payable $17,000 $ 6,000
Salaries payable 113,000 100,000
Total current liabilities 21,000 15,000
$151,000 $121,000
Noncurrent liabilities
Bonds payable $100,000 $100,000
Other 32,000 27,000
Total current liabilities $132,000 $127,000
Total liabilities $283,000 $248,000
Stockholder’s equity
Preferred stock, par value 410, 4% cumulative and issued Common stock, no par:, 50,000 shares authorized;
$80,000
$80,000
10,000 shares issued $80,000 $80,000
Retained earnings 132,000 108,000
Total stockholder’s equity $292,000 $268,000
Total liabilities and stockholder’s equity
$576,000
$516,000
Bernard Company
Statements of Income and Retained Earnings
For the Year’s ended December 31
Revenues 2012 2011
Sales (net) $230,000 $210,000
Other revenues 8,000 5,000
Total revenues $238,000 $215,000
Expenses
Cost of goods sold $120,000 $103,00
Selling, general, and administrative expenses
$55,000
$50,000
Interest expense 8,000 7,200
Income tax expense 23,000 22,000
Total expenses 206,000 182,000
Net earnings (net income) 32,000 32,800
Retained earnings, January 1 108,000 83,000
Less: Preferred stock dividends
2,800
2,800
Common stock dividends 5,000 5,000
Retained earnings, December 31
$132,200
$108,000
