Anne Arundel Community College BPA 202 -Financial Statement Project – Part 2

| October 3, 2018

Anne Arundel Community College

BPA 202: Managerial Accounting – R.
Beatty

Financial Statement Project – Part 2 (30
points)
Name:____________________

Use the financial statements and additional
information to calculate the ratios. Round your answers to two decimal places.
Be sure to label your answer correctly (example, %, times, days, etc.). DO
NOT LEAVE ANSWERS THAT

SHOULD BE PERCENTAGES IN DECIMAL FORM!!!! (i.e. 0.5015 = 50.15%!!!!)

Previous
(December 31, 2013) year end balances for:

Accounts receivable, net of allowance

$2,000

Inventory

15,000

Total assets

453,000

Stockholders’ Equity

139,000

Market
price per share for one share of common stock at Dec 31, 2014

$94.50/share

Dividend per share for one share of common
stock for FYE Dec 31, 2014

$1.25/share

Condensed Income Statement, FYE December 31, 2014

Net Sales

$416,000

Cost of Goods Sold

109,000

Total Operating Expenses (Wages Expense =
$60,000)

134,000

Other Revenues & Gains

65,000

Other Expenses & Losses

4,000

Income Tax Expense (25% of IBIT)

??

Net income (Loss)

??

Condensed Balance Sheet, December 31, 2014

Cash

$142,000

Accounts Payable

$41,000

Marketable Securities

62,000

Accrued Expenses

20,000

Notes Receivable (S/T)

2,000

Mortgage Payable (S/T)

12,000

Accounts Receivable (net)

5,000

Unearned Revenue

19,000

Inventory

40,000

Notes Payable (L/T)

12,000

L/T Investments

7,000

Mortgage Payable (L/T)

132,000

Notes Receivable (L/T)

11,000

Common Stock (13,000 shares)

52,000

Land

50,000

Retained Earnings

169,000

Buildings (net)

138,000

Total Assets

$ 457,000

Total Liabilities & Equity

$457,000

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RATIO

CALCULATION

ANSWER

1)

Quick (Acid-Test) Ratio (3 points)

2)

Dividend Yield (3 points)

3)

Gross Profit Percentage (3 points)

4)

Average Days’ Sales Uncollected (3 points)

5)

Inventory Turnover (2 points)

6)

Return on Total Assets (2 points)

7)

Debt to Equity Ratio (2 points)

8)

Earnings per Share (basic) (2 points)

9)

Price-Earnings Ratio (2 points)

10)

Common-size Percentage for Inventory (2
points)

11)

Common-size Percentage for Wages Expense (2

points)

12)

Trend Percentage for Accounts Receivable (2

points)

13)

Using the liquidity ratios (and general
accepted

norms for current ratio and acid-test ratio),
comment

on the company’s financial position. [The
company’s

credit policy is net 15.] (2 points)

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