Chapter 14 Financial Statement Analysis 673
Instructions
Determine the following measures for 2007, rounding to one decimal place:
- Working capital
- Current ratio
- Quick ratio
- Accounts receivable turnover
- Number of days’ sales in receivables
- Inventory turnover
- Number of days’ sales in inventory
- Ratio of fixed assets to long-term liabilities
- Ratio of liabilities to stockholders’ equity
- Number of times interest charges earned
- Asset turnover
- Rate earned on total assets
- Rate earned on stockholders’ equity
- Earnings per share on common stock
- Price-earnings ratio
- Dividends per share of common stock
- Dividend yield
- DuPont formula
- Leverage formula
Vision International, Inc.
Comparative Balance Sheet
December 31, 2007 and 2006Dec. 31, 2007 Dec. 31, 2006
Assets
Current assets:
Cash $ 165,000 $ 126,000
Marketable securities 398,000 254,000
Accounts receivable (net) 199,000 165,000
Inventories 84,000 52,000
Prepaid expenses 25,000 18,000
Total current assets $ 871,000 $ 615,000
Long-term investments 300,000 200,000
Property, plant, and equipment (net) 1,040,000 760,000
Total assets $2,211,000 $1,575,000
Liabilities
Current liabilities $ 290,000 $ 250,000
Long-term liabilities:
Mortgage note payable, 8%, due 2012 $ 300,000 —
Bonds payable, 12%, due 2016 600,000 $ 400,000
Total long-term liabilities $ 900,000 $ 400,000
Total liabilities $1,190,000 $ 650,000
Stockholders’ Equity
Preferred $6 stock, $100 par $ 250,000 $ 200,000
Common stock, $10 par 350,000 350,000
Retained earnings 421,000 375,000
Total stockholders’ equity $1,021,000 $ 925,000
Total liabilities and stockholders’ equity $2,211,000 $1,575,000