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    Financial statements for Bernard Company

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    1. Use the financial statements for Bernard Company from Problem 9-22 to calculate the following from 2012 and 2011.

    Bernard Company
    Balance Sheet
    As of December 31
    2012 2011

    Assets
    Current assets
    Cash $16,000 $12,000
    Marketable securities 20,000 6,000
    Accounts receivable (net) 54,000 46,000
    Inventories 135,000 143,000
    Prepaid items 25,000 10,000
    Total current assets 250,000 217,000
    Investments 27,000 20,000
    Plant (net) 270,000 255,000
    Land 29,000 24,000
    Total assets $576,000 $516,000
    Liabilities and Stockholders Equity
    Liabilities
    Current Liabilities
    Notes payable $17,000 $6,000
    Accounts payable 113,800 100,000
    Salaries payable 21,000 15,000
    Total current liabilities 151,800 121,000
    Noncurrent liabilities
    Bonds payable 100,000 100,000
    Other 32,000 27,000
    Total noncurrent liabilities 132,000 127,000
    Total liabilities 283,800 248,000
    Stockholders' equity
    Preferred stock, par value $10, 4% cumulative, non-
    participating; 8,000 shares authorized and issued 80,000 80,000
    Common stock, no par; 50,000 shares authorized;
    10,000 shares issued 80,000 80,000
    Retained earnings 132,200 108,000
    Total stockholders' equity 292,200 268,000
    Total liabilities and stockholders' equity $576,000 $516,000

    Bernard Company
    Statement of Income and Retained Earnings
    For the Years Ended December 31
    2012 2011

    Revenues
    Sales (net) $230,000 $210,000
    Other revenues 8,000 5,000
    Total revenues 238,000 215,000
    Expenses 120,000 103,000
    Selling, general, and administrative expenses 55,000 50,000
    Interest expense 8,000 7,200
    Income tax expense 23,000 22,000
    Total expenses 206,000 182,200
    Net earnings (net income) 32,000 32,800
    Retained earnings, January 1 108,000 83,000
    Less: Preferred stock dividends 2,800 2,800
    Common stock dividends 5,000 5,000
    Retained earnings, December 31 $132,000 $108,000

    a. Working capital =

    b. Current Ratio =

    c. Quick Ratio =

    d. Accounts receivable turnover (beginning receivables at 01/01/2011, was $47,000) =

    e. Average number of days to collect accounts receivable =

    f. Inventory turnover (beginning inventory at 01/01/2011, was $140,000) =

    g. Average number of days to sell inventory =

    h. Debt to asset ratio =

    i. Debt to equity ratio =

    j. Times interest earned =

    k. Plant assets to long-term debt =

    l. Net margin =

    m. Asset turnover =

    n. Return on investment (ROI) =

    o. Return on Equity (ROE) =

    p. Earnings per share =

    q. Book value per share of common stock =

    r. Price-earnings ratio (market price per share, 2011, $11.75; 2012, $12.50) =

    s. Dividend yield on common stock =

    2. The following transactions pertain to 2012 the first year operations of Hall Company. All inventory was started and completed during 2012. Assume that transactions are cash transactions.

    1. Acquired $4,000 cash by issuing common stock.
    2. Paid $720 for materials used to produce inventory.
    3. Paid $1,800 to production workers.
    4. Paid $540 rental fee for production equipment.
    5. Paid $180 to administrative employees.
    6. Paid $144 rental fee for administrative office equipment.
    7. Produced 300 units of inventory of which 200 units were sold at a price of $12 each.

    Required:
    Prepare an income statement, balance sheet and statement of cash flows.

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    1. Use the financial statements for Bernard Company from Problem 9-22 to calculate the following from 2012 and 2011.

    Bernard Company
    Balance Sheet
    As of December 31
    2012 2011

    Assets
    Current assets
    Cash $16,000 $12,000
    Marketable securities 20,000 6,000
    Accounts receivable (net) 54,000 46,000 ...

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