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"The comparative financial statements of Optical S...

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"The comparative financial statements of Optical Solutions Inc. are as follows. The market price of Optical Solutions Inc. common stock was $60.00 on December 31, 2010. Optical Solutions Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Retained earnings, January 1 $ 604,000 $306,000 Add net income for year 428,000 314,000 Total $1,032,000 $620,000 Deduct dividends: On preferred stock $ 4,000 $ 4,000 On common stock 12,000 12,000 Total $ 16,000 $ 16,000 Retained earnings, December 31 $1,016,000 $604,000 Optical Solutions Inc. Comparative Income Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Sales $1,608,000 $1,481,600 Sales returns and allowances 5,920 6,000 Net sales $1,602,080 $1,475,600 Cost of goods sold 480,200 499,200 Gross profit $1,121,880 $ 976,400 Selling expenses $ 324,000 $ 352,000 Administrative expenses 234,000 211,200 Total operating expenses $ 558,000 $ 563,200 Income from operations $ 563,880 $ 413,200 Other income 24,000 19,200 $ 587,880 $ 432,400 Other expense (interest) 110,720 80,000 Income before income tax $ 477,160 $ 352,400 Income tax expense 49,160 38,400 Net income $ 428,000 $ 314,000 Dec. 31, 2010 Dec. 31, 2009 Assets Current assets: Cash $ 240,000 $ 162,400 Temporary investments 364,000 328,800 Accounts receivable (net) 260,000 211,200 Inventories 208,000 66,400 Prepaid expenses 44,000 23,200 Total current assets $1,116,000 $ 792,000 Long-term investments 204,800 256,000 Property, plant, and equipment (net). 1,539,200 976,000 Total assets. $2,860,000 $2,024,000 Liabilities Current liabilities $ 360,000 $ 320,000 Long-term liabilities: Mortgage note payable, 8%, due 2015 $ 384,000 ? Bonds payable, 10%, due 2019 800,000 $ 800,000 Total long-term liabilities $1,184,000 $ 800,000 Total liabilities. $1,544,000 $1,120,000 Stockholders? Equity Preferred $2.00 stock, $50 par $ 100,000 $ 100,000 Common stock, $5 par 200,000 200,000 Retained earnings 1,016,000 604,000 Total stockholders? equity $1,316,000 $ 904,000 Total liabilities and stockholders? equity. $2,860,000 $2,024,000 Instructions Determine the following measures for 2010, rounding to one decimal place: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days? sales in receivables 6. Inventory turnover 7. Number of days? sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders? equity 10. Number of times interest charges earned 11. Number of times preferred dividends earned 12. Ratio of net sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders? equity 15. Rate earned on common stockholders? equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield",Disregard I will re-submit

 

Paper#10712 | Written in 18-Jul-2015

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