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B. For the year 200B - Lim Company's return on common stockholders' equituy was 12.5 %.
Its average stockholders' equity for the same period was 500,000 ,
inclusive of 50,000 par value preferred stock with a dividend rate of 8% .
C. The following information was taken from last year's financial statements
D Industries :
Current liabilities 60,000
Long-term liabilities 180,000
Preferred stocks 50,000
Number of common shares outstanding 10,000
The company has a debt-to-equity ratio of .96 to 1 as at the end of last year .
What was the book value per share at the end of last year ?
20x3 20x2
Assets
Current Assets
Cash 2,030.50 1,191.00
Marketable Securities 2,636.00 4,002.00
Accounts Receivable 4,704.00 4,383.50
Allowance for doubtful account (224.00) (208.50)
Inventories 23,520.50 18,384.50
Prepaid expenses 256.00 379.50
Total Current Assets 32,923.00 28,132.00
Current Liabilities
Accounts Payable 7,147.00 3,795.50
Notes payable -banks 2,807.00 3,006.00
Current maturities of long-term debt 942.00 758.00
Accrued liabilities 2,834.50 2,656.50
Total current liabilities 13,730.50 10,216.00
Deferred Income taxes 421.50 317.50
20x3 20x2
Cash Flows from operating activities -Direct Method
Cash received from customers 107,495.00 74,830.50
Interest Received 211.00 419.00
Cash paid to suppliers for inventories - 66,466.50 - 49,968.00
Cash paid to employees ( S & A expense ) - 16,332.00 - 13,191.00
Cash paid for other operating expenses - 14,864.00 - 10,675.00
Interest paid - 1,292.50 - 1,138.50
Taxes paid - 3,739.00 - 2,160.50
Net cash provided(used) by operating activities 5,012.00 - 1,883.50
Current Ratio
Formula: Current Assets
Current Liabilities
20x2
Current Assets 28,132
Current Liabilities 10,216
Current Ratio 2.75
20x3
Net Sales 107,800
Average Accounts Receivable Balance (4,480 + 4,175) / 2
Accounts Receivable Turnover 24.91
Accounts Receivable Turnover
Formula: Net sales
Average Accounts Receivable Balance
20x2
Net Sales 76,500
Average Accounts Receivable Balance 4,175
Accounts Receivable Turnover ###
20x3
365 days 365
Accounts Receivable Turnover 24.9
Average Collection Period 14.6 or 15 days
Average Collection Period
Formula: 365 days
Accounts Receivable Turnover
20x2
365 days 365
Accounts Receivable Turnover 18.32
Average Collection Period 19.9 days or 20 days
Inventory Turnover
Formula Cost of good sold
Average inventory
Balance
20x3
Cost of good sold 64,682
Average inventory balance (23,520 + 18,384.5) / 2 20952.25
Inventory Turnover 3.09
Inventory Turnover
Formula Cost of good sold
Average inventory
Balance
20x2
Cost of good sold 45,940
Average inventory balance 18,384.50
Inventory Turnover 2.50
Debt Ratio