[Key essay answer here]
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1.
Amount Percent Amount Percent
Sales 1,300,000$ 100.0% 1,180,000$ 100.0%
Cost of goods sold (682,500) -52.5% (613,600) -52.0%
Gross profit 617,500$ 47.5% 566,400$ 48.0%
Selling expenses (260,000)$ -20.0% (188,800)$ –16.0%
Administrative expenses (169,000) -13.0% (177,000) -15.0%
Total operating expenses (429,000)$ -33.0% (365,800)$ –31.0%
Operating income 188,500$ 14.5% 200,600$ 17.0%
Other revenue 78,000 6.0% 70,800 6.0%
Income before income tax expense 266,500$ 20.5% 271,400$ 23.0%
Income tax expense (117,000) -9.0% (106,200) -9.0%
Net income 149,500$ 11.5% 165,200$ 14.0%
Fielder Industries Inc.
Problem 14-2B
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Solution
Section:
Score:
Instructions
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Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
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1.
a. Working Capital = Current Assets –Current Liabilities
=
Working Capital =
b. Current Assets
Current Liabilities
Current Ratio =
Quick Assets
Current Liabilities
Quick Ratio =
Answers are entered in the cells with gray backgrounds.
Problem 14-3A
Name:
Section:
Score:
0%
Key Code:
[Key code here]
Instructions
=
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Current Ratio
=
=
c.
Quick Ratio
=
2. Current Quick Current Working Current Quick
Transaction Assets Assets Liabilities Capital Ratio Ratio
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
An asterisk (*) will appear to the right of an incorrect entry.
1.
a. Working Capital = Current Assets –Current Liabilities
= $1,650,000 $750,000
Working Capital = $900,000
b. Current Assets
Current Liabilities
$1,650,000
$750,000
Current Ratio =
2.2
Quick Assets
Current Liabilities
$900,000
$750,000
Quick Ratio =
1.2
2. Current Quick Current Working Current Quick
Transaction Assets Assets Liabilities Capital Ratio Ratio
i. 2,250,000 1,500,000 750,000 1,500,000 3.0 2.0
j. 1,650,000 890,000 750,000 900,000 2.2 1.2
Score:
ON
Problem 14-3A
Name:
Solution
Section:
=
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
Current Ratio
=
=
c.
Quick Ratio
=
An asterisk (*) will appear to the right of an incorrect entry.
1.
a. Working Capital = Current Assets –Current Liabilities
=
Working Capital =
b. Current Assets
Current Liabilities
Current Ratio =
Quick Assets
Current Liabilities
Quick Ratio =
Answers are entered in the cells with gray backgrounds.
Problem 14-3B
Name:
Section:
Score:
0%
Key Code:
[Key code here]
Instructions
=
Cells with non-gray backgrounds are protected and cannot be edited.
Current Ratio
=
=
c.
Quick Ratio
=
2. Current Quick Current Working Current Quick
Transaction Assets Assets Liabilities Capital Ratio Ratio
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
An asterisk (*) will appear to the right of an incorrect entry.
1.
a. Working Capital = Current Assets –Current Liabilities
= $3,200,000 $2,000,000
Working Capital = $1,200,000
b. Current Assets
Current Liabilities
$3,200,000
$2,000,000
Current Ratio =
1.6
Quick Assets
Current Liabilities
$2,200,000
$2,000,000
Quick Ratio =
1.1
2. Current Quick Current Working Current Quick
Transaction Assets Assets Liabilities Capital Ratio Ratio
a. 3,200,000$ 2,200,000$ 2,000,000$ 1,200,000$ 1.6 1.1
b. 2,912,500 1,912,500 1,712,500 1,200,000 1.7 1.1
Score:
ON
Problem 14-3B
Name:
Solution
Section:
=
Instructions
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Cells with non-gray backgrounds are protected and cannot be edited.
Current Ratio
=
=
c.
Quick Ratio
=
An asterisk (*) will appear to the right of an incorrect entry.
Current Assets –
Current
Liabilities
=
Calculated Value
1. Working capital
Ratio Numerator ÷ Denominator =
Calculated Value
2. Current ratio
3. Quick ratio
4. Accounts receivable
turnover
5. Number of days’
sales in receivables
6. Inventory turnover
7. Number of days’
Problem 14-4A
Name:
Section:
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Score:
0%
Key Code:
[Key code here]
Instructions
Answers are entered in the cells with gray backgrounds.
sales in inventory
8. Ratio of fixed assets to
long-term liabilities
9. Ratio of liabilities to
stockholders’ equity
10. Times interest earned
11. Asset turnover
12. Return on total assets
13 Return on stockholders’
equity
14. Return on common
stockholders’ equity
15. Earnings per share
on common stock
16. Price-earnings ratio
17. Dividends per share
of common stock
18. Dividend yield
An asterisk (*) will appear to the right of an incorrect entry.
Current Assets –
Current
Liabilities
=
Calculated Value
1. Working capital $2,464,000 $880,000 $1,584,000
Ratio Numerator ÷ Denominator =
Calculated Value
2. Current ratio 2,464,000$ 880,000$ 2.8
3. Quick ratio 1,936,000$ 880,000$ 2.2
4. Accounts receivable
turnover 10,850,000$ 542,500$ 20.0
5. Number of days’
sales in receivables 542,500$ 29,726$ 18.3
6. Inventory turnover 6,000,000$ 400,000$ 15.0
7. Number of days’
sales in inventory 400,000$ 16,438$ 24.3
8. Ratio of fixed assets to
long-term liabilities 5,760,000$ 3,200,000$ 1.8
Score:
ON
Problem 14-4A
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Solution
Section:
Instructions
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on common stock 590,000$ 100,000 $5.90
16. Price-earnings ratio 82.60$ 5.90$ 14.0
17. Dividends per share
of common stock 100,000$ 100,000 $1.00
18. Dividend yield 1.00$ 82.60$ 1.2%
An asterisk (*) will appear to the right of an incorrect entry.
Current Assets –
Current
Liabilities
=
Calculated Value
1. Working capital
Ratio Numerator ÷ Denominator =
Calculated Value
2. Current ratio
3. Quick ratio
4. Accounts receivable
turnover
5. Number of days’
sales in receivables
6. Inventory turnover
7. Number of days’
Problem 14-4B
Name:
Section:
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Score:
0%
Key Code:
[Key code here]
Instructions
Answers are entered in the cells with gray backgrounds.
sales in inventory
8. Ratio of fixed assets to
long-term liabilities
9. Ratio of liabilities to
stockholders’ equity
10. Times interest earned
11. Asset turnover
12. Return on total assets
13. Return on stockholders’
equity
14. Return on common
stockholders’ equity
15. Earnings per share
on common stock
16. Price-earnings ratio
17. Dividends per share
of common stock
18. Dividend yield
An asterisk (*) will appear to the right of an incorrect entry.
Current Assets –
Current
Liabilities
=
Calculated Value
1. Working capital $3,690,000 $900,000 $2,790,000
Ratio Numerator ÷ Denominator =
Calculated Value
2. Current ratio 3,690,000$ 900,000$ 4.1
3. Quick ratio 2,250,000$ 900,000$ 2.5
4. Accounts receivable
turnover 10,000,000$ 625,000$ 16.0
5. Number of days’
sales in receivables 625,000$ 27,397$ 22.8
6. Inventory turnover 5,350,000$ 1,070,000$ 5.0
Score:
ON
Problem 14-4B
Name:
Solution
Section:
Instructions
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on common stock 855,000$ 100,000 $8.55
16. Price-earnings ratio 119.70$ 8.55$ 14.0
17. Dividends per share
of common stock 50,000$ 100,000 $0.50
18. Dividend yield 0.50$ 119.70$ 0.4%