Question

- M3 Post-Assignment Question 3 of 3 < > View Policies Current Attempt in Progress The following financial information is for Priscoll Company. 2019 Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 136,500 Debt investments (short-term) 107,250 Accounts receivable 202,800 Inventory 448,500 Prepaid expenses 48,750 Land 253,500 Building and equipment (net) 507.000 Total assets $1,704,300 Liabilities and Stockholders' Equity Notes payable (short-term) $331,500 Accounts payable 126,750 Accrued liabilities 78,000 Bonds payable, due 2023 487.500 Common stock, $10 par 390,000 Retained earnings 290.550 Total liabilities and stockholders' equity $1,704,300 $126.750 78,000 175,500 321.750 44,850 253,500 360.750 $1.361,100 $234,000 101,400 78,000 331,500 390,000 226,200 $1,361,100

Answer 1

Current Ratio	1.8	1.8
Receivable turnover	9.1	9.0
Inventory turnover	3.2	4.1
Profit Margin	5.9%	6.1%
Asset Turnover	1.1	1.2
Return On assets	6.6%	7.1%
Earning Per share	2.6	2.4
Receivable Turnover=Sales/Average Receivables
Inventory turnover=Cost of Goods Sold/Average Inventory
Cuurent Ratio=Current Assets/Current Liabilities
Net Profit Ratio=(Net Profit/Sales) X 100
Return on assets=(Net Income/Average Assets) X 100
Asset Turnover=Sales/Average assets
Earning Per share=Net Income/Outstanding Shares
Workings
	2020	2019	2019 Beginning
Sales	1,719,900	1,540,500
Cost of Goods Sold	1,248,000	1,121,250
Net Income	101,400	93,600
Total equity	680,550	616,200	390,000
	(390000+290550)	(390000+226200)
Assets	1,704,300	1,361,100	1,287,000
Cash	136,500	126,750
Accounts Receivable	202,800	175,500	167,700
Inventory	448,500	321,750	224,250
Debt Instruments(Short term)	102,750	78,000
Prepaid Expenses	48,750	44,850
Total Current assets	939,300	746,850
Notes Payable	331,500	234,000
Accounts Payable	126,750	101,400
Accrued Liabilities	78,000	78,000
Total Current Liabilities	536,250	413,400
Average Assets	1,532,700	1,324,050
	(1704300+1361100)/2	(1361100+1287000)/2
Average Receivables	189,150	171,600
	(202800+175500)/2	(175500+167700)/2
Average Inventory	385,125	273,000
	(448500+321750)/2	(321750+224250)/2
Average Equity	648,375	503,100
	(680500+616200)/2	(616200+390000)/2
Outstanding Shares	39,000	39,000