1 answer

Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on...

Question:

Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company’s common stock at the end of the year was $26. All of the company’s sales are on account.

Heritage Antiquing Services Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 1,080 $ 1,210
Accounts receivable, net 9,000 6,500
Inventory 12,000 10,600
Prepaid expenses 600 500
Total current assets 22,680 18,810
Property and equipment:
Land 9,000 9,000
Buildings and equipment, net 36,800 38,000
Total property and equipment 45,800 47,000
Total assets $ 68,480 $ 65,810
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 18,500 $ 17,400
Accrued payables 900 700
Notes payable, short term - 100
Total current liabilities 19,400 18,200
Long-term liabilities:
Bonds payable 8,000 8,000
Total liabilities 27,400 26,200
Stockholders' equity:
Preferred stock 1,000 1,000
Common stock 2,000 2,000
Additional paid-in capital 4,000 4,000
Total paid-in capital 7,000 7,000
Retained earnings 34,080 32,610
Total stockholders' equity 41,080 39,610
Total liabilities and stockholders' equity $ 68,480 $ 65,810
Heritage Antiquing Services
Comparative Income Statement and Reconciliation
(dollars in thousands)
This Year Last Year
Sales $ 66,000 $ 64,000
Cost of goods sold 43,000 42,000
Gross margin 23,000 22,000
Selling and administrative expenses:
Selling expenses 11,500 11,000
Administrative expenses 7,400 7,000
Total selling and administrative expenses 18,900 18,000
Net operating income 4,100 4,000
Interest expense 800 800
Net income before taxes 3,300 3,200
Income taxes 1,320 1,280
Net income 1,980 1,920
Dividends to preferred stockholders 60 400
Net income remaining for common stockholders 1,920 1,520
Dividends to common stockholders 450 450
Net income added to retained earnings 1,470 1,070
Retained earnings, beginning of year 32,610 31,540
Retained earnings, end of year $ 34,080 $ 32,610

Required: Compute the following financial data for short-term creditors for this year: 1. Current ratio. (Round your answer t

Required: Compute the following financial data for short-term creditors for this year: 1. Current ratio. (Round your answer to 2 decimal places.) Current ratio 2. Acid-test ratio. (Round your answer to 2 decimal places.) Acid-test ratio

Answers

1 Current ratio 2 Acid-test ratio 1.17 0.52 Working Notes: 1 Current ratio = Current assets Current liabilities = $22,680/S19

.

Similar Solved Questions

1 answer
(2) Jominy Test Jominy Sample Data Hardness, Rockwell C 4140 1045 56 54 55 30 Distance...
(2) Jominy Test Jominy Sample Data Hardness, Rockwell C 4140 1045 56 54 55 30 Distance (in) 1/8 1/4" | 3/8 1/2 3/4 52 28 51 27 48 24 1 46 23 43 19 1 1/4 1 1/2 40 15 1 3/4 38 15 2 34 a) Plot Hardness vs. distance from quenched surface b) Identify the material with less hardenability. Why does the...
2 answers
How do you express # (3x+5)/((3x+2)(2x+1) )# in partial fractions?
How do you express # (3x+5)/((3x+2)(2x+1) )# in partial fractions?...
1 answer
Must be done in C You will implement a function that matches one of the prototypes...
must be done in C You will implement a function that matches one of the prototypes below. int maxArray(int size, int* arr); int maxArray(int size, int arr]); The first parameter is the number of elements in the array. The second parameter is an address to the beginning of an int array. In the bod...
1 answer
Lillian Crisp incorporated NutriCrisp two years ago, hoping to eventually tap into the lucrative health cereal...
Lillian Crisp incorporated NutriCrisp two years ago, hoping to eventually tap into the lucrative health cereal market. Located in southwestern Ontario, NutriCrisp Inc. has yet to start selling any cereal, but Lillian has completed test production and researched the cereal industry. Lillian has taken...
2 answers
Can any result be discarded
1. The following percentages of chloride were found: 32.52%, 32.14%, 32.61% and 32.75%.a. Find the mean, the standard deviation and the relative deviation.b. Can any result be discarded?Mean = 32.51%Standard deviation = .002611Relative deviation = .008031Can any result be discarded? if yes why?...
1 answer
PLEASE HELP! WILL GIVE GREAT REVIEW! Use what you need of the following set of information...
PLEASE HELP! WILL GIVE GREAT REVIEW! Use what you need of the following set of information to answer the question: S0 = $1.1420/€            S0 = £0.7776/$              ...
1 answer
4. Refer to the data in (3) above. How many stoves would have to be sold...
4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to yield a minimum net operating income of $79,000 per month? (Round your answer to the nearest whole number.) Outback Outfitters sells recreational equipment. One of the company's products, a small...
1 answer
Question 8 8 pts The Earth takes slightly less than one day to complete one rotation...
Question 8 8 pts The Earth takes slightly less than one day to complete one rotation about the axis passing through its poles. Assume that the actual time is 72976 seconds. Given this information, what is the angular speed of the Earth about its axis? Write your answer in rad/sec Question 9 8 pts A ...
1 answer
Part 3 and 4 a,b,c part 6, 7 need done asap! All work must be completed...
part 3 and 4 a,b,c part 6, 7 need done asap! All work must be completed using this Excel spreadsheet. Al journal extries, financial statements, etc. must be prepared in cean, proper form. Reference your textbook and past courses for examples or templates to model Use the current year for dating...
1 answer
Are dissolved in 250ml How many moles of Cacla of a 0.204 Cacla solution?
are dissolved in 250ml How many moles of Cacla of a 0.204 Cacla solution?...
1 answer
You are to conduct a wind tunnel testing of a new football design. It is known...
You are to conduct a wind tunnel testing of a new football design. It is known that you need to maintain Reynold’s number, Re, and Strovhal Number, St, similarity for the testing. Based on a standard college quarterback, prototype velocity, V = 40mph and rotation, ω = 300rpm. The prototy...
1 answer
The following data from the just completed year are taken from the accounting records of Mason...
The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $ 660,000 $ 89,000 $ 1...
1 answer
Find the maturity value of an investment of $25000 that earns 4% per year for 225...
Find the maturity value of an investment of $25000 that earns 4% per year for 225 days. Please show your work......
1 answer
Barbituric acid (1) is the backbone for common central nervous system depressants with anesthetic anxiolytic, and...
Barbituric acid (1) is the backbone for common central nervous system depressants with anesthetic anxiolytic, and hypnotic properties. If the active allosteric pharmacophore is present as HA. calculate the a) pH and b) percentage of 2 in 10-M barbituric acid....
1 answer
Hg(OA), H20; NaBH HO
Hg(OA), H20; NaBH HO...
1 answer
1. Observe the microstructure of three given cast irons samples (1, 2 and 3) using optical...
1. Observe the microstructure of three given cast irons samples (1, 2 and 3) using optical microscopy and then a) Identify each of them from their key microstructural features from micrograph. b) Specify your reasons for identification and compare their mechanical properties. c) Schematically draw t...
1 answer
7. Define a Markov Chain on S-0,1,2,3,... with transition probabilities Pi,i+1 with 0<p < 1/2. Prove...
7. Define a Markov Chain on S-0,1,2,3,... with transition probabilities Pi,i+1 with 0<p < 1/2. Prove that the Markov Chain is reversible....
1 answer
Over the years, coal miners inhale large quantities of fine coal dust that irritates their alveolar...
Over the years, coal miners inhale large quantities of fine coal dust that irritates their alveolar surfaces and results in inflammation and then development of scar-tissue (a tough-fibrous tissue) within their alveolar walls and on alveolar surfaces. (a) Define compliance. (b) Would coal miners hav...