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The condensed financial statements of Leeward Corporation for 2006 and 2005 are presented below.;Leeward Corporation Leeward Corporation;Balance S

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The condensed financial statements of Leeward Corporation for 2006 and 2005 are presented below.;Leeward Corporation Leeward Corporation;Balance Sheet Income Statement;December 31, 2006 For the Year Ended December 31, 2006;Assets Revenues $2,500,000;Current assets Expenses;Cash and temporary Cost of goods sold 1,080,000;investments $ 50,000 Selling and administrative;Accounts receivable 70,000 expenses 495,000;Inventories 120,000 Interest expense 30,000;Total current assets 240,000 Total expenses 1,605,000;Property, plant, and Income before income taxes 895,000;equipment (net) 780,000 Income tax expense 268,500;Total assets $1,020,000 Net income $ 626,500;Liabilities and Stockholders' Equity;Current liabilities $ 100,000;Long-term liabilities 300,000;Common stockholders' equity 620,000;Total liabilities and;stockholders' equity $1,020,000;Leeward Corporation Leeward Corporation;Balance Sheet Income Statement;December 31, 2005 For the Year Ended December 31, 2005;Assets Revenues $2,500,000;Current assets Expenses;Cash and temporary Cost of goods sold 1,750,000;investments $ 40,000 Selling and administrative;Accounts receivable 90,000 expenses 500,000;Inventories 150,000 Interest expense 30,000;Total current assets 280,000 Total expenses 2,280,000;Property, plant, and Income before income taxes 220,000;equipment (net) 800,000 Income tax expense 66,000;Total assets $1,080,000 Net income $ 154,000;Liabilities and Stockholders' Equity;Current liabilities $ 140,000;Long-term liabilities 320,000;Common stockholders' equity 620,000;Total liabilities and;stockholders' equity $1,080,000;Instructions;Compute the following listed ratios for 2006.;(a) Current ratio = ___________________________________________________________.;(b) Debt to total assets = _____________________________________________________.;(c) Profit margin ratio = ______________________________________________________.;(d) Return on common stockholders' equity = ____________________________________.;(e) Return on assets = _______________________________________________________.;Perform horizontal analysis on both the balance sheet and income statement.;Leeward Corporation;Balance Sheet;Horizontal Analysis;2006;2005;Change;Percent;Assets;Cash and temporary investments;$50,000;$40,000;Accounts receivable;$70,000;$90,000;Inventories;$120,000;$150,000;Total current assets;$240,000;$280,000;Property, plant and equipment;$780,000;$800,000;Total assets;$1,020,000;$1,080,000

 

Paper#75833 | Written in 18-Jul-2015

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