The following post-closing trial balance was prepared on December 31, 2019 and 2020 for the Florida Company:
|
|
Dec. 31, 2019 |
Dec. 31, 2020 |
||
|
Account |
Debit |
Credit |
Debit |
Credit |
|
Cash |
25,000 |
|
79,000 |
|
|
Building |
450,000 |
|
380,000 |
|
|
Inventory |
50,000 |
|
70,000 |
|
|
Accounts receivable |
35,000 |
|
56,000 |
|
|
Discount on bonds payable |
4,000 |
|
3,000 |
|
|
Trading investments |
79,000 |
|
68,000 |
|
|
Adjustment to market, trading investments |
5,000 |
|
7,000 |
|
|
Patents |
60,000 |
|
54,000 |
|
|
Life insurance, cash surrender value |
|
|
8,000 |
|
|
Accumulated depreciation |
|
164,000 |
|
128,000 |
|
Allowance for bad debts |
|
4,000 |
|
6,000 |
|
Bonds payable |
|
200,000 |
|
200,000 |
|
Accounts payable |
|
80,000 |
|
100,000 |
|
Unearned rental income |
|
20,000 |
|
8,000 |
|
Common stock, $1 par |
|
10,000 |
|
10,000 |
|
Paid-in excess of par |
|
190,000 |
|
190.000 |
|
Retained earnings |
|
40,000 |
|
83,000 |
|
|
|
|
|
|
Required:
B. Ratio Analysis (the ratios that will be on Exam 1)
Assume that sales were $340,000, the cost of goods sold was $220,000 and net income was $43,000 for 2020. Calculate the following ratios for 2020:
2. Accounts Receivable (as ratio and in days)
3. Inventory turnover (as a ratio and in days)
4. Return on Assets
5. Book value per share
Note: Any ratio with an income statement item in the numerator and a balance sheet amount in the denominator should use an average amount (beginning/end of year) amount in the denominator.