accounting questions 495193

Print by: Sadu Singh FUNDAMENTALS OF ACCOUNTING II: 352923 / Project *Problem 13-4A The following financial information is for Cheaney Company. CHEANEY COMPANY Balance Sheets December 31 Assets 2012 2011 Cash $ 71,500 $ 65,100 Short-term investments 54,800 39,200 Receivables 103,400 89,200 Inventories 238,900 168,400 Prepaid expenses 29,800 27,500 Land 134,400 134,400 Building and equipment (net) 259,100 183,300 $891,900 $707,100 Total assets Liabilities and Stockholders’ Equity Notes payable $170,600 $107,100 Accounts payable 68,600 54,100 Accrued liabilities 39,200 39,200 Bonds payable, due 2015 249,900 171,800 Common stock, $10 par 199,800 199,800 Retained earnings 163,800 135,100 $891,900 $707,100 Total liabilities and stockholders’ equity CHEANEY COMPANY Income Statements For the Years Ended December 31 2012 2011 Sales $893,300 $797,500 Cost of goods sold 644,900 575,600 Gross profit 248,400 221,900 Operating expenses 191,400 159,700 $ 57,000 $ 62,200 Net income Additional information: 1. Inventory at the beginning of 2011 was $115,500. 2. Receivables (net) at the beginning of 2011 were $89,100. 3. Total assets at the beginning of 2011 were $638,700. 4. No common stock transactions occurred during 2011 or 2012. 5. All sales were on account. *(a)Your answer is partially correct. Try again. Compute the liquidity and profitability ratios of Cheaney Company for 2011 and 2012. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%. If % change is a decrease show the numbers as negative, e.g. -12.61% or (12.61%).) 2011 2012 % Change LIQUIDITY Current :1 :1 % 1.94 1.79 -7.73 Receivables turnover times times % 8.94 9.28 -3.80 Inventory turnover times times % 4.05 3.17 -21.73 2011 2012 % Change PROFITABILITY Profit margin % % % 7.80 6.38 17.95 Asset turnover times times % 1.19 1.12 -5.88 Return on assets % % % 9.24 7.13 -22.84 Earnings per share % 3.11 2.86 8.04 $ $ Attempts: 2 of 2 used *(b) Given below are three independent situations and a ratio that…