Purchase Solution

Financial Statement Analysis of the Gaines Company

Not what you're looking for?

Ask Custom Question

The following information has been taken from the financial statements of the Gaines Company. Gaines Company has only issued common stock

Net Income $ 60,000
Total Assets January 1 20X9 $500,000
Total Liabilities. December 31, 20X9 $175.000
Net Sales $900.000
Interest Expense $ 20,000
Current Assets, December31, 20X9 $175,000
Current Liabilities, December 31, 20X9 $ 75,000
Income Tax Expense $ 25,000
Total Assets, December31, 20X9 $ 575,000
Stockholders' Equity, January 2, 20X9 $ 300,000
Stockholders' Equity, December 31, 20X9 $ 400,000
Common shares outstanding for 20X9 $ 100,000

Use the given data for the Gaines Company to calculate the following
ratios for 20X9.
a) rate of return on total assets
b) rate of return on common stockholders' equity.
c) rate of return on net sales.
d) times-interest?earned ratio.
e) debt ratio, December 31, 20X9.
f) current ratio, December31, 20X9.
g) earnings per share of common stock.

Purchase this Solution

Solution Summary

This solution is comprised of a detailed explanation to prepare Financial Statement Analysis of the Gaines Company through financial ratios.

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Motivation

This tests some key elements of major motivation theories.