{"id":27672,"date":"2022-01-25T14:50:05","date_gmt":"2022-01-25T14:50:05","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/the-comparative-statements-of-beulah-company-are-presented-below\/"},"modified":"2022-01-25T14:50:05","modified_gmt":"2022-01-25T14:50:05","slug":"the-comparative-statements-of-beulah-company-are-presented-below","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/the-comparative-statements-of-beulah-company-are-presented-below\/","title":{"rendered":"The comparative statements of beulah company are presented below."},"content":{"rendered":"
\n

Problem 14-6A<\/span><\/strong> The comparative statements of Beulah Company are presented below.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

BEULAH COMPANY
Income Statement
For the Years Ended December 31<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

2014<\/span><\/strong><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

2013<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Net sales (all on account)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$500,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$420,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Expenses<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0Cost of goods sold<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

315,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

254,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Selling and administrative<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

120,800<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

114,800<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Interest expense<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

7,500<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

6,500<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Income tax expense<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

20,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

15,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total expenses<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

463,300<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

390,300<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net income<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$\u00a036,700<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$\u00a029,700<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

BEULAH COMPANY
Balance Sheets
December 31<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Assets<\/span><\/strong><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

2014<\/span><\/strong><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

2013<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Current assets<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0Cash<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$\u00a021,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$\u00a018,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Short-term investments<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

18,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

15,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Accounts receivable (net)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

85,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

75,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Inventory<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

80,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

60,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current assets<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

204,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

168,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Plant assets (net)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

423,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

383,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total assets<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$627,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$551,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Liabilities and Stockholders\u2019 Equity<\/span><\/strong><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

Current liabilities<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0Accounts payable<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$122,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$110,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Income taxes payable<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

12,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

11,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current liabilities<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

134,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

121,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Long-term liabilities<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0Bonds payable<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

120,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

80,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total liabilities<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

254,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

201,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0Common stock ($5 par)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

150,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

150,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Retained earnings<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

223,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

200,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

373,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

350,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total liabilities and stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$627,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$551,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/p>\n

Additional data: <\/span><\/p>\n

The common stock recently sold at $19.50\u00a0per share.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Compute the following ratios for 2014. <\/span>(Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)<\/span><\/em><\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

(a)<\/span><\/p>\n<\/td>\n

\n

Current ratio<\/span><\/p>\n<\/td>\n

\n

\u00a0:1<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(b)<\/span><\/p>\n<\/td>\n

\n

Acid-test ratio<\/span><\/p>\n<\/td>\n

\n

\u00a0:1<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(c)<\/span><\/p>\n<\/td>\n

\n

Accounts receivable turnover<\/span><\/p>\n<\/td>\n

\n

\u00a0times<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(d)<\/span><\/p>\n<\/td>\n

\n

Inventory turnover<\/span><\/p>\n<\/td>\n

\n

\u00a0times<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(e)<\/span><\/p>\n<\/td>\n

\n

Profit margin<\/span><\/p>\n<\/td>\n

\n

\u00a0%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(f)<\/span><\/p>\n<\/td>\n

\n

Asset turnover<\/span><\/p>\n<\/td>\n

\n

\u00a0times<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(g)<\/span><\/p>\n<\/td>\n

\n

Return on assets<\/span><\/p>\n<\/td>\n

\n

\u00a0%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(h)<\/span><\/p>\n<\/td>\n

\n

Return on common stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\n

\u00a0%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(i)<\/span><\/p>\n<\/td>\n

\n

Earnings per share<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
\n

(j)<\/span><\/p>\n<\/td>\n

\n

Price-earnings ratio<\/span><\/p>\n<\/td>\n

\n

\u00a0times<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(k)<\/span><\/p>\n<\/td>\n

\n

Payout ratio<\/span><\/p>\n<\/td>\n

\n

\u00a0%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(l)<\/span><\/p>\n<\/td>\n

\n

Debt to total assets<\/span><\/p>\n<\/td>\n

\n

\u00a0%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(m)<\/span><\/p>\n<\/td>\n

\n

Times interest earned<\/span><\/p>\n<\/td>\n

\n

\u00a0times<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/em><\/strong><\/p>\n

Don’t show me this message again for the assignment<\/span><\/p>\n

\u00a0<\/p>\n

Click if you would like to Show Work for this question:<\/span><\/strong>Open Show Work<\/span><\/a><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Problem 14-6A The comparative statements of Beulah Company are presented below. \u00a0 BEULAH COMPANYIncome StatementFor the Years Ended December 31 \u00a0 \u00a0 2014 \u00a0 2013 Net sales (all on account) \u00a0 $500,000 \u00a0 $420,000 Expenses \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0\u00a0\u00a0Cost of goods sold \u00a0 315,000 \u00a0 254,000 \u00a0\u00a0\u00a0\u00a0Selling and administrative \u00a0 120,800 \u00a0 114,800 \u00a0\u00a0\u00a0\u00a0Interest […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-27672","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/27672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=27672"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/27672\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=27672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=27672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=27672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}