11 Oct Cash and marketable securities
Financial statements for Praven Company appear below: Praven Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Currrent assets: Year 2 Year 1 Cash and marketable securities. . . . . . . . . . . . $ 150 $ 130 Accounts receivable, net . . . . . . . . . . . . . . . . . 190 160 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 180 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . 50 40 Total current assets . . . . . . . . . . . . . . . . . . . . . . 560 510 Noncurrent assets: Plant & equipment, net . . . . . . . . . . . . . . . . . . 1,420 1,330 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980 $1,840 Current liabilities: Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 110 $ 100 Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . 90 60 Notes payable, short term . . . . . . . . . . . . . . . . 260 260 Total current liabilities . . . . . . . . . . . . . . . . . . . 460 420 Noncurrent liabilities: Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . 400 400 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 860 820 Stockholder’s equity: Preferred stock, $5 par, 15% . . . . . . . . . . . . . . 120 120 Common stock, $10 par . . . . . . . . . . . . . . . . . 240 240 Additional paid-in capital—common stock . . . . 210 210 Retained earnings . . . . . . . . . . . . . . . . . . . . . . 550 450 Total stockholders’ equity . . . . . . . . . . . . . . . . . 1,120 1,020 Total liabilities & stockholders’ equity . . . . . . . . $1,980 $1,840 Praven Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account). . . . . . . . . . . . . . . . . . . . . $1,700 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . 1,190 Gross margin. . . . . . . . . . . . . . . . . . . . . . . . . . . 510 Selling and administrative expense . . . . . . . . . . 200 Net operating income . . . . . . . . . . . . . . . . . . . . . 310 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . 40 Net income before taxes . . . . . . . . . . . . . . . . . . . 270 Income taxes (30%) . . . . . . . . . . . . . . . . . . . . . . 81 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 189 Dividends during Year 2 totaled $89 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $130. Required: Compute the following for Year 2: 1. Book value per share 2.Working capital 3.Current ratio 4.Acid-test ratio 5.Accounts receivable turnover 6. Average collection period 7. Inventory turnover 8.Average sale period 9. Times interest earned 10. Debt-to-equity ratio
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.