Review Project -
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Thrifty Appliances, Inc. Information
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INFORMATION IS AS OF 12/31/10 UNLESS OTHERWISE STATED
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Ratios
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Amounts
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1.
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Inventory Turnover Ratio
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22.545454545
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2.
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Inventory at 1/1/10
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$ 1,500,000
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3.
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Bond Interest Coverage
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4.535353535
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4.
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Common Stock originally sold at a premium of 50%
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5.
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Cash Ratio
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3.71063830%
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6.
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Prepaid Expenses at 1/1/10
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$ 40,000
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7.
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Composition of total Plant, Property and Equipment is:
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Land
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14.99772210%
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Net Building
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41.00227790%
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Net Equipment
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44.00000000%
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8.
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Depreciation Expense (included in Operating Expenses)
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$ 1,245,000
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9.
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Buildings are 25% Depreciated
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10.
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Ratio of Net Accounts Receivable to Accounts Payable
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1.73609740
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11.
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Accounts Payable at 1/1/10
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$ 1,879,000
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12.
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Ratio of Notes Payable to Bonds Payable
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0.0500000
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13.
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Preferred Stock (liquidation value is par value) originally sold at a 25% premium.
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14.
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Cash Dividends Paid in January 2010 on Common Stock
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$ 270,000
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15.
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Cash Dividends Paid in January 2010 on Preferred Stock
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$ 40,000
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16.
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Accrued Expenses at 1/1/10
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$ 425,000
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17.
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Dividends Declared in December 2010 to be paid in January 2011
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$ 328,000
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18.
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Ratio of Unearned Sales Revenues to Current Liabilites
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1.3264554164%
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19.
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Unearned Revenue at 1/1/10
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$ -
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20.
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Total Assets at 1/1/10
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$ 13,271,000
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21.
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Current Ratio
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1.63350528126
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22.
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Quick Ratio
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1.45664455908
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23.
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Return on Sales
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2.862149533%
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24.
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Gross Profit Ratio
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42.056074766%
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25.
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Equity Ratio
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45.696453901%
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26.
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Average Collection Period
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30.92266355140
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27.
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Accounts Receivable at 1/1/10
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$ 2,000,000
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28.
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Allowance for Doubtful Accounts at 1/1/10
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$ 24,000
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29.
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Allowance for Doubtful Accounts at 12/31/10
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$ 64,000
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30.
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Return on Assets
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14.532625583%
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31.
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Bonds issued at Par on 1/1/10 (outstanding all year - no other interest expense)
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$ 2,000,000
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32.
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Total Assets at 12/31/10
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$ 17,625,000
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33.
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Post-Closing Retained Earnings at 12/31/10
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$ 5,404,000
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34.
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Net Income for 2010
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$ 1,225,000
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35.
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Cash at 1/1/10
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$ 875,000
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36.
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Earnings Per Share of Common Stock for 2010
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$ 1.3166666667
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Required: Using the financial ratios included with this assignment and the additional information given, prepare the following for Thrifty Appliances, Inc. for 2010:
a. Trial balance showing beginning of year balances, current year activity, and end of year balances.
b. Income Statement
c. Statement of Retained Earnings
d. Balance Sheet
e. Statement of Cash Flows
Attachment:- Project Assignment.rar