Maynard Company's Balance Sheet and Income Statement Are Provided Below
Question 151
Question 151
Essay
Maynard Company's balance sheet and income statement are provided below: Maynard Company Balance Sheet As of December 31 , Cash Accounts receivable Inventory Plant and equipment, net Land Total assets Liabilities and Stockholders’Equity Accounts payable Notes payable Capital stock, no par Retained earnings Total liabilities and stockholders’ equity $83,50094,00062,500500,000150,000$890,000$73,000115,000440,000262,000$890,000$92,00090,00060,000525,000150,000$917,000$62,000160,000400,000295,000$917,000 Maynard Company Income Statement Years Ended December 31 Sales Less cost of goods sold Gross margin Less operating expenses Income before taxes Income taxes Net income Year 2$549,000360,000189,00086,500102,50018,500$84,000 Year 1$468,150289,500178,65055,450123,20016,600$106,600 The company paid cash dividends of $2.00 per share during Year 2.On December 31,Year 2,the stock was listed on the stock exchange at a price of $78.25 per share. Required: Compute the following ratios for Year 2: (a)Accounts receivable turnover (b)Average days to collect receivables (c)Inventory turnover (d)Average days to sell inventory (e)Debt to assets ratio (f)Debt to equity ratio (g)Net margin (h)Asset turnover (i)Return on investment (j)Dividend yield Round your answers to one decimal place.
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