Financial information for Roberts Company at December 31, 2011, and for the year then ended, are presented below:
|
|
|
|
Balance Sheet
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2011
|
2010
|
|
|
Cash
|
|
|
|
$ 31,000
|
$ 15,000
|
|
|
Accounts receivable
|
|
|
28,500
|
30,000
|
|
|
Allowance for doubtful accounts
|
|
(2,000)
|
(1,500)
|
|
|
Inventory
|
|
|
|
15,000
|
10,000
|
|
|
Prepaid insurance
|
|
|
1,400
|
2,400
|
|
|
Property, plant, and equipment
|
|
81,000
|
80,000
|
|
|
Accumulated depreciation
|
|
(16,000)
|
(20,000)
|
|
|
Land
|
|
|
|
81,100
|
40,100
|
|
|
|
Total assets
|
|
|
$ 220,000
|
$ 156,000
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$ 11,000
|
$ 10,000
|
|
|
Wages payable
|
|
|
1,000
|
2,000
|
|
|
Interest payable
|
|
|
1,000
|
-
|
|
|
Notes payable, long-term
|
|
|
46,000
|
20,000
|
|
|
Common stock, nopar
|
|
|
136,000
|
100,000
|
|
|
Retained earnings
|
|
|
25,000
|
24,000
|
|
|
|
Total liabilities and
|
|
|
|
|
|
|
stockholders' equity
|
|
$ 220,000
|
$ 156,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue
|
|
|
$ 80,000
|
|
|
|
|
Cost of goods sold
|
|
(35,000)
|
|
|
|
|
Depreciation expense
|
|
(5,000)
|
|
|
|
|
Bad debt expense
|
|
(1,000)
|
|
|
|
|
Insurance expense
|
|
(1,000)
|
|
|
|
|
Interest expense
|
|
(2,000)
|
|
|
|
|
Salaries and wages expense
|
|
(12,000)
|
|
|
|
|
Income tax expense
|
|
(3,000)
|
|
|
|
|
Remaining expenses
|
|
(13,000)
|
|
|
|
|
Loss on sale of operational assets
|
(2,000)
|
|
|
|
|
Net income
|
|
|
$ 6,000
|
|
Additional information:
1. Wrote off $500 accounts receivable as uncollectible.
2. Sold an operational asset for $4,000 cash (cost, $15,000, accumulated depreciation, $9,000).
3. Issued common stock for $5,000 cash.
4. Declared and paid a cash dividend of $5,000.
5. Purchased land for $20,000 cash.
6. Acquired land for $21,000, and issued common stock as payment in full.
7. Acquired operational assets, cost $16,000; issued a $16,000, three-year, interest-bearing note payable.
8. Paid a $10,000 long-term note installment by issuing common stock to the creditor.
9. Borrowed cash on a long-term note, $20,000.
Required:
Prepare the statement of cash flows using the indirect method.
Cash $ 40,000
Accounts receivable 125,000
Inventory 75,000
Plant assets (net) 360,000
Total assets $600,000
Accounts payable $ 75,000
Accrued taxes and expenses payable 25,000
Long-term debt 100,000
Common stock ($10 par) 160,000
Paid-in capital in excess of par 40,000
Retained earnings 200,000
Total equities $600,000
Net sales (all on credit) $1,000,000
Cost of goods sold 750,000
Net income 90,000
Instructions
Compute the following: (It is not necessary to use averages for any balance sheet figures involved.)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity