Ratios Industry Averages Because you own the comm on stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Compared with LO Dec. 31, 2020 Dec. 31, 2019 $ 552,000 Quick assets. Inventory and prepaid expenses Other assets . 24 700,000 372,000 312,000 4,788,000 4,200,000 Total Assets $5,860,000 $5,064,000 Current liabilities. 724,000 $ 564,000 $4 1,440,000 480,000 2,700,000 $ 10% Bonds payable 8% Preferred stock, $100 par value Common stock, $10 par value Retained earnings..... 1,440,000 480.000 2,160,000 420,00O 516,000 Total Liabilities and Stockholders' Equity $5,860,000 $5,064,000 For 2020, net sales amount to $11,280,000, net income is $575,000, and preferred stock dividends paid are $42,000. Required Calculate the following ratios for 2020: a. Profit margin Return on assets Return on common stockholders’ equity Quick ratio Current ratio 1. 2. 3. 4. 5. 6. Debt-to-equity ratio
Ratios Industry Averages Because you own the comm on stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: Compared with LO Dec. 31, 2020 Dec. 31, 2019 $ 552,000 Quick assets. Inventory and prepaid expenses Other assets . 24 700,000 372,000 312,000 4,788,000 4,200,000 Total Assets $5,860,000 $5,064,000 Current liabilities. 724,000 $ 564,000 $4 1,440,000 480,000 2,700,000 $ 10% Bonds payable 8% Preferred stock, $100 par value Common stock, $10 par value Retained earnings..... 1,440,000 480.000 2,160,000 420,00O 516,000 Total Liabilities and Stockholders' Equity $5,860,000 $5,064,000 For 2020, net sales amount to $11,280,000, net income is $575,000, and preferred stock dividends paid are $42,000. Required Calculate the following ratios for 2020: a. Profit margin Return on assets Return on common stockholders’ equity Quick ratio Current ratio 1. 2. 3. 4. 5. 6. Debt-to-equity ratio
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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