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Question: comparative financial statements for heritage antiquing services for the fiscal...

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Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company’s common stock at the end of the year was $26. All of the company’s sales are on account.

Heritage Antiquing Services Comparative Balance Sheet (dollars in thousands) Last This Year Year AssetS Current assets: Cash Accounts receivable, net Inventory Prepaid expenses 1,080 1,210 9,000 6,500 12,000 10,600 500 600 Total current assets 22,680 18,810 Property and equipment: Land Buildings and equipment, net Total property and equipment 9,000 36,800 38,000 45,800 47,000 $68,480 65,810 9,000 Total assets Liabilities and Stockholders Equity Current liabilities: Accounts payable Accrued payables Notes payable, short term $ 18,500 $17,400 700 900 Total current liabilities Long-term liabilities: 19,400 18,200 Bonds payable 8,000 8,000 27,400 26,200 Total liabilities Stockholders equity: Preferred stock Common stock Additional paid-in capital Total paid-in capital 1,0001,000 2,000 2,000 4,000 4,666 7,000 34,080 32,610 41,080 39,610 7,000 Retained earnings Total stockholders equity Total liabilities and stockholders equity $68,480 $65,810Heritage Antiquing Services Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $ 66,000 64,000 43,000 42,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to preferred stockholders Net income remaining for common stockholders Dividends to common stockholders Net income added to retained earnings Retained earnings, beginning of year 23,000 22,00e 7,400 18, 900 4,100 800 3, 300 1,320 1,980 60 1,920 450 1,470 11,500 11,000 7,000 18,000 4,000 800 3,200 1,280 1,920 400 1,520 450 1,070 52,61031,540 34,080 32,610 Retained earnings, end of yearRequired: Compute the following financial data for short-term creditors for this year: 1. Current ratio. (Round your answer to 2 decimal places.) Current ratio 2. Acid-test ratio. (Round your answer to 2 decimal places.) Acid-test ratio From Garrison: Managerial Accounting, 14e (0078111005): E15-3: Q2&3 only]

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