Ace Kitchen Works, Inc. - Liquidity Ratios, Activity Measures, Profitability Ratios
rubyCpaMba1. Analysis of Liquidy: Based on the comparative income statement and balance sheet of Ace Kitchen Works, Inc., that follow, compute the following liquidity measures:
(a) Quick or acid-test ratio
(b) Current ratio
(c) Working capital
2. Analysis of Activity Measures: Based on the financial statement data, compute the following activity measures for:
(a) Accounts receivable turnover
(b) Merchandise inventory turnover
(c) Asset turnover
3. Analysis of Profitability: Based on the financial statement data, compute the following profitability
measures:
(a) profit margin ratio
(b) Return on assets
(c) Return on common stockholders’ equity
(d) Earnings per share of common stock
Ace Kitchen Work, Inc.
Comparative Income Statement
For Years Ended December 31, 20-2 and 20-1
20-220-1
Net sales (on account) 2,643,000.00 2,176,400.00
Cost of goods sold 1,868,200.00 1,614,200.00
Gross profit 774,800.00 562,200.00
Operating expenses 244,600.00 221,800.00
Other expense (interest) 24,200.00 24,200.00
Income tax expense 161,900.00 101,200.00
Net income 344,100.00 215,000.00
Ace Kitchen Work, Inc.
Comparative Balance Sheet
December 31, 20-2 and 20-1
20-2 20-1
Cash 129,000.00 106,800.00
Government notes 300,000.00 300,000.00
Accounts receivable (net) 892,400.00 787,400.00
Merchandide inventory 952,800.00 866,200.00
Supplies and prepayments 50,600.00 46,600.00
Land 108,200.00 108,200.00
Building (net) 330,000.00 390,600.00
Office equipment (net) 13,600.00 15,000.00
Total assets 2,776,600.00 2,620,800.00
Current liabilities (accounts payable) 608,000.00 507,200.00
Bonds payable 200,000.00 220,000.00
Total liabilities 808,000.00 727,200.00
Common stock ($10 par, 170,000 shares) 1,700,000.00 1,700,000.00
Retained earnings 268,600.00 193,600.00
Total stockholder's equity 1,968,600.00 1,893,600.00
Total liabilities and stockholder's equity 2,776,600.00 2,620,800.00
- 10 years ago
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- ace_kitchen_works_--_financial_ratios.xlsx