Solved

Financial Ratios
Shown Below Are Some Key Figures from the Balance

Question 34

Essay

Financial ratios
Shown below are some key figures from the balance sheets of Minuteman Gas Company for two successive years:
 December 31,2010 December 31,2009 Total assets (of which 30% are current) $2,820,000$2,220,000 Current liabilities $336,000$372,000 Bonds payable (long term) $1,080,000$840,000 Capital stock, $6 par value $660,0004660,000 Retained Earnings $828,000$480,000\begin{array} { | l | r | r | } \hline & \text { December } 31,2010 & \text { December } 31,2009 \\\hline \text { Total assets (of which } 30 \% \text { are current) } & \$ 2,820,000 & \$ 2,220,000 \\\hline \text { Current liabilities } & \$ 336,000 & \$ 372,000 \\\hline \text { Bonds payable (long term) } & \$ 1,080,000 & \$ 840,000 \\\hline \text { Capital stock, } \$ 6 \text { par value } & \$ 660,000 & 4660,000 \\\hline \text { Retained Earnings } & \$ 828,000 & \$ 480,000 \\\hline\end{array}
Dividends of $96,000 were declared and paid in 2010. Compute the following:
 Current ratio at end of 2009 Current ratio at end of 2010 Working capital at end of 2009 Working capital at end of 2010 Debt ratio at end of 2009 Debt ratio at end of 2010 Earnings per share for 2010\begin{array}{|l|l|l|}\hline \text { Current ratio at end of } 2009 &\quad\quad\quad&\quad\quad\\\hline \text { Current ratio at end of } 2010 \\\hline \text { Working capital at end of } 2009 \\\hline \text { Working capital at end of } 2010 \\\hline \text { Debt ratio at end of } 2009 \\\hline \text { Debt ratio at end of } 2010 \\\hline \text { Earnings per share for } 2010 \\\hline\end{array}

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions