1. The following is located under the Stockholder’s Equity section of a balance sheet:
Preferred 3% stock, $100 par $102,000
Common stock, $50 par $549,900
A. How many shares of common stock does this corporation have?
B. How many shares of Preferred stock does this corporation have?
C. What is the total dividend that will be paid for Preferred stock?
D. If the Preferred stock listing stated $3 instead of 3% would that change the total dividend amount? Why?
2.
Balance Sheet:
Cash
2010: $27,000
2009: $33,000
Short-term investments
2010: 22,000
2009: 28,000
Net receivables
2010: 54,000
2009: 72,000
Inventory
2010: 65,000
2009:42,000
Prepaid expenses
2010: 7,000
2009: 9,000
Total current assets
2010: 175,000
2009: 184,000
Total current liabilities
2010: 87,500
2009: 92,000
Income Statement:
Net credit sales
$554,800
Cost of goods sold
331,700
1. What is the current ratio for 2010?
2. What is the quick ratio for 2010?
3. What is the inventory turnover for 2010?
4. What is the accounts receivable turnover for 2010?
Please show all your work, not just the answer.