2) For the FY 2016, Alpha Company

had net sales of $950,000 and net income of $65,000, paid income taxes of $30,000, and had before tax interest expense of $15,000. Use this information to determine the: (Round & enter your answers to one decimal place and enter the value.)

1. Times Interest Earned Ratio

2. Profit Margin

Question 3

The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):   

Item/Account

2017

2016

Cash

$26,000

$16,000

Accounts Receivable

40,000

50,000

Inventory

30,000

22,000

Current Liabilities

76,000

42,000

Net Sales (all credit)

390,000

360,000

Cost of Goods Sold

250,000

260,000

Use this information to determine for FY 2017: (Round & enter your answers to one decimal place and enter the value.)

1. the inventory turnover ratio

2. number of days of inventory

3. Gross Profit Margin

Question 4

Here are comparative balance sheets for Alpha Company.

ALPHA COMPANY

Comparative Balance Sheets

December 31

Assets

2014

2013

Cash

$72,710

$22,001

Accounts receivable

85,652

76,161

Inventories

169,800

188,601

Land

75,070

100,300

Equipment

259,540

200,580

Accumulated depreciation

(65,861)

(32,198)

    Total

$596,911

$555,445

Liabilities and Stockholders’ Equity

Accounts payable

$39,209

$46,636

Bonds payable

151,530

203,230

Common stock ($1 par)

214,140

175,750

Retained earnings

192,032

129,829

    Total

$596,911

$555,445

Additional information:

1. Net income for 2014 was $101,690, depreciation was $33,663.
2. Cash dividends of $39,487 were declared and paid.
3. Bonds payable amounting to $51,700 were redeemed for cash $51,700.
4. Common stock was issued for $38,390 cash.
5. Land was sold for $25,230 cash, there was no loss.
6. Equipment was purchased for $58,960 cash.

statement of cash flows for 2014 using the indirect method. 

 

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