Ch16 - Student Name: Class: Problem 16-12 Requirement 1:...

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Student Name: Class: Problem 16-12 Requirement 1: SABIN ELECTRONICS Ratios This Year Last Year Working capital Current ratio Acid-test ratio Accounts receivable turnover Average collection period Inventory turnover Average sales period Debt-to-equity ratio Times interest earned
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Student Name: Class: Problem 16-12 Requirement 2a: SABIN ELECTRONICS Common-Size Balance Sheets This Year Last Year Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Current liabilities Bonds payable, 12% Total liabilities Stockholders' equity: Preferred stock, $25 par, 8% Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and equity Requirement 2b: SABIN ELECTRONICS Common-Size Income Statements This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income
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Given Data P16-12: Requested loan amount $500,000 SABIN ELECTRONICS Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $70,000 $150,000 Marketable securities - 18,000 Accounts receivable, net 480,000 300,000 Inventory 950,000 600,000 Prepaid expenses 20,000 22,000 Total current assets 1,520,000 1,090,000 Plant and equipment, net 1,480,000 1,370,000 Total assets $3,000,000 $2,460,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $800,000 $430,000 Bonds payable, 12% 600,000 600,000 Total liabilities 1,400,000 1,030,000 Stockholders' equity: Preferred stock, $25 par, 8% 250,000 250,000 Common stock, $10 par 500,000 500,000 Retained earnings 850,000 680,000 Total stockholders' equity 1,600,000 1,430,000 Total liabilities and stockholders' equity $3,000,000 $2,460,000 SABIN ELECTRONICS Comparative Income Statement This Year Last Year Sales $5,000,000 $4,350,000 Cost of goods sold 3,875,000 3,450,000 Gross margin 1,125,000 900,000 Selling and administrative expenses 653,000 548,000 Net operating income 472,000 352,000 Interest expense 72,000 72,000 Net income before taxes 400,000 280,000 Income taxes (40%)
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Ch16 - Student Name: Class: Problem 16-12 Requirement 1:...

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