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FINAL EXAM ACC 400

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FINAL EXAM ACC 400;FINAL EXAM: ACC/400;S. Duhn;The condensed financial statements of Westward Corporation for 2006 are presented below.;Westward Corporation Westward Corporation;Balance Sheet Income Statement;December 31, 2006 For the Year Ended December 31, 2006;Assets Revenues $2,000,000;Current assets Expenses;Cash and temporary Cost of goods sold 1,080,000;investments $ 30,000 Selling and administrative;Accounts receivable 70,000 expenses 495,000;Inventories 120,000 Interest expense 30,000;Total current assets 220,000 Total expenses 1,605,000;Property, plant, and Income before income taxes 395,000;equipment (net) 780,000 Income tax expense 140,000;Total assets $1,000,000 Net income $ 255,000;Liabilities and Stockholders' Equity;Current liabilities $ 80,000;Long-term liabilities 300,000;Common stockholders' equity 620,000;Total liabilities and;stockholders' equity $1,000,000;Westward Corporation Westward 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 77,000;Total assets $1,080,000 Net income $ 143,000;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;Additional data as of December 31, 2004: Inventory = $100,000, Total assets = $900,000, Common stockholders' equity = $540,000.;Instructions;Compute the following listed ratios for 2006 and 2005 showing supporting calculations.;(a) Current ratio = ___________________________________________________________.;(b) Debt to total assets = _____________________________________________________.;(c) Times interest earned = ___________________________________________________.;(d) Inventory turnover = ______________________________________________________.;(e) Profit margin ratio = ______________________________________________________.;(f) Return on common stockholders' equity = ____________________________________.;(g) Return on assets = _______________________________________________________.;Perform horizontal and vertical analysis on Westward both income statement and balance sheet, show your results.;Assess the financial performance of Westward, given the analysis tools used above.

 

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