P15-6 - 145,000 130,000 Long-term liabilities Bonds payable...

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P15-6 (H - M) P15-6 The comparative statements of Dillon Company are presented below. DILLON COMPANY Income Statement For Year Ended December 31 2009 2008 Net sales (all on account) 600,000 520,000 Expenses Cost of goods sold 415,000 354,000 Selling and administrative 120,800 114,800 Interest expense 7,800 6,000 Income tax expense 18,000 14,000 Total expenses 561,600 488,800 Net income 38,400 31,200 DILLON COMPANY Balance Sheets December 31 Assets 2009 2008 Current assets Cash 21,000 18,000 Short-term investments 18,000 15,000 Accounts receivable (net) 86,000 74,000 Inventory 90,000 70,000 Total current assets 215,000 177,000 Plant assets (net) 423,000 383,000 Total assets 638,000 560,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable 122,000 110,000 Income taxes payable 23,000 20,000 Total current liabilities
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Unformatted text preview: 145,000 130,000 Long-term liabilities Bonds payable 120,000 80,000 Total liabilities 265,000 210,000 Stockholders' equity Common stock ($5 par) 150,000 150,000 (23,000) Retained earnings 223,000 200,000 15,400 Total stockholders' equity 373,000 350,000 Total liabilities and stockholders' eq 638,000 560,000 Additional data: The common stock recently sold at $19.50 per share. The year-end balance in the allowance for doubtful accounts was $3,000 for 2009 and $2,400 for 2008. Instructions Compute the following ratios for 2009. (h) Return on common stockholders' equity. 38,400 373,000 + 350,000 = 10.6% 2 (i) Earnings per share. 38,400 = $0.26 150,000 (j) Price-earnings. 19.50 = 76.2 times 0.26 (k) Payout. 15,400 = 40.1% 38,400 (l) Debt to assets. 265,000 = 41.5% 638,000 (m) Times interest earned. 64,200 = 8.2 times 7,800...
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