Question

Balance Sheets December 31 Assets 2022 2021 $69,000 $69,000 Cash Debt investments (short-term) 51,000 105,000 39,000 90,000 Accounts receivable Inventory 230,000 168,000 Prepaid expenses 24,000 26,000 Land 129,000 129,000 262,000 Building and equipment (net) 183,000 Total assets $870,000 $704,000 Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2025 $171,000 $109,000 66,000 52,000 40,000 40,000 252,000 172,000 205,000 205,000 136,000 126,000 $870,000 $704,000 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity

Answer 1

H. changes 11.33% % -4.24% % 19.58% % 2021 2022 2 LIQUIDITY 3 Current ratio 4 Accounts receivable turnover 1.95 :1 1.73 :1 8.79 times 9.16 times 5 Inventory turnover 4.05 times 3.26 times 6. 7 PROFITABILITY 8 Profit margin 9 Asset turnover 2021 changes 4.82%|% 2.78% % 12.04% % -8.70%|% 2022 5.88% % 1.17 times 6.53% % 5.60% % 1.13 times 5.75% % 10 Return on assets 11 Earnings per share $2.24 $2.44 12 2022 changes 46.35% % 2021 13 PROFITABILITY 14 Return on common stockholder's equity 24.39% % 48.62%|% 3.69 times 13.09% % 27.85% % 9.93 times 169.21% % 42.73% % 15 Debt to assets ratio 16 Price earnings ratio 17 =Current Assets / Current Liabilities 18 Current ratio 19 Accounts receivable turnover =Net Sales / Average Accounts Receivable =(Beginning + Ending) / 2 =Cost of Goods Sold / Average Inventory =(Beginning + Ending)/2 20 Average Accounts Receivable 21 Inventory turnover 22 Average Inventory 23 Profit margin =Net Income / Sales 24 Asset turnover =Net Sales / Average Assets =(Beginning + Ending) / 2 25 Average Assets =Net Income / Total Assets Return on Assets 26 =Net Income / No. of Common Shares 27 Earnings per share 28 Return on common stockholder's equity =Net Income / Common Stockholder's Equity =Debt / Equity =Market price / Earnings per share 29 Debt to assets ratio 30 Price earnings ratio 31

Н 2022 =B11/B20 2021 changes 2 LIQUIDITY 3 Current ratio |=C11/C20 |=C32/((C8+D8)/2) |=C33/((C9+D9)/2) :1 =(G3-13)/G3 times =(G4-14)/G4 times =(G5-15)/G5 :1 times =B32/((B8+C8)/2) times =B33/((B9+C9)/2) Accounts receivable turnover 4 5 Inventory turnover 6. 7 PROFITABILITY 8 Profit margin 9 Asset turnover 2022 |-в36 В32 =C32/((C14+D14)/2) times -B32/((B14+C14)/2) times =(G9-19)/G9 |=B36/B14 |=B36/(B22/10) 2021 changes =(GS-I8)/G8 =C36/C32 |=C36/C14 |=C36/(C22/10) =(G10-110)/G10 % =(G11-I11)/G11 % 10 Return on assets 11 Earnings per share 12 2022 |=02/04 F06/03 times 07/08 2021 changes I3(G14-I114)/G14 % =(G15-115)/G15 % times =(I16-G16)/G16 % 13 PROFITABILITY 14 Return on common stockholder's equit=P2/P4 =P6 P3 =P7/P8 % 15 Debt to assets ratio 16 Price earnings ratio 17 =Current Assets / Current Liabilities 18 Current ratio 19 Accounts receivable turnover =Net Sales / Average Accounts Receivable =(Beginning + Ending) / 2 =Cost of Goods Sold / Average Inventory =(Beginning + Ending)/ 2 =Net Income / Sales =Net Sales / Average Assets =(Beginning + Ending)/ 2 20 Average Accounts Receivable Inventory turnover 22 Average Inventory 23 Profit margin 24 Asset turnover 25 Average Assets =Net Income / Total Assets 26 Return on Assets 27 Earnings per share 28 Return on common stockholder's equit=Net Income / Common Stockholder's Equity =Net Income / No. of Common Shares =Debt / Equity 29 Debt to assets ratio 30 Price earnings ratio =Market price / Earnings per share 31

CRANE COMPANY 1. Balance Sheets 2. 31-Dec 3. 4 Assets 2022 2021 2020 5 Current Assets 6 Cash 7 Debt investments (short-term) $69,000 $51,000 $105,000 $69,000 $39,000 $90,000 $230,000 $168,000 $116,000 $26,000 $88,000 8 Accounts receivable 9 Inventory 10 Prepaid expenses $24,000 $479,000 $392,000 $129,000 $129,000 $262,000 $183,000 $870,000 $704,000 $636,000 11 Total Current Assets 12 Land 13 Building and equipment (net) 14 Total Assets 15 Liabilities and Stockholder's Equity 16 Current Liabilities $171,000 $109,000 $52,000 $66,000 17 Notes Payable 18 Accounts Payable 19 Accrued liabilities $40,000 $40,000 $277,000 $201,000 $252,000 $172,000 $205,000 $205,000 $136,000 $126,000 $341,000 $331,000 $870,000 S704,000 20 Total Current Liabilities 21 Bonds Payable, due 2017 22 Common Stock, $10 par 23 Retained Earnings 24 Stockholder's Equity 25 Total Liabilities and Stockholder's equity 26 27 CRANE COMPANY 28 Income Statements 29 For the year ended December 31 30 2021 2022 31 $893,000 $782,000 $648,000 $575,000 $245,000 $207,000 $195,000 $161,000 32 Sales revenue 33 Cost of goods sold 34 Gross profit 35 Operating expenses 36 Net income $50,000 $46,000 37

2022 2023 $53,000 $50,000 $870,000 2 Net Income 3 Total Assets 4 Common stock, $10 par 5 No. of shares 6 Debt 7 Market price per share 8 Earnings per share $905,000 $405,000 $205,000 20,500 $423,000 40,500 $252,000 $13 $9 $1.31 $2.44 9.

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Answer 2

Problem 13-04A.xlsx

If you're just going to copy down the work you might as well understand how it works.