# Pacca Company Case 13-23a Financial Statement

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Problem 13-23A Financial statements for Pocca Company follow. (See Excel) Use the financial statements for Pocca Company from Problem 13-22A to calculate the following ratios for 2006 and 2005. Working capital Current ratio Quick ratio Accounts receivable turnover (beginning receivables at January 1, 2005, were \$47,000.) Average number of days to collect accounts receivable Inventory turnover (beginning inventory at January 1, 2005, was \$140,000.) Average number of days to sell inventory Debt to assets ratio Debt to equity ratio Times interest earned Plant assets to long-term debt Net margin Asset turnover Return on investment Return on equity Earnings per share Book value per share of common stock Price-earnings ratio…show more content…
Total liabilities ÷ Total stockholders' equity 283,800÷292,200=97.1% 248,000÷268,000 = 92.5% j. (Income before taxes+ Interest) Interest (55,000 + 8,000) ÷ 8,000 = 7.9 times (54,800 + 7,200) ÷ 7,200 = 8.6 times k. Plant assets ÷ Long-term debt 270,000 ÷ 132,000 = 2.05 : 1 255,000 ÷ 127,000 = 2.01 : 1 l. Net income ÷ Net sales 32,000 ÷ 230,000 = 13.9% 32,800 ÷ 210,000 = 15.6% m. Net sales ÷ Avg. total assets 230,000 ÷ 546,000=0.42 210,000 ÷ 516,000=0.41* n. Net income ÷ Avg. total assets OR (l.) x (m.) 32,000 ÷ 546,000 = 5.9% 32,800 ÷ 516,000 = 6.4%* o. Net income ÷ Avg. stockholders' equity 32,000 ÷ 280,100 = 11.4% 32,800 ÷ 268,000= 12.2%* p. Net income - Preferred dividend Avg. common shares outstanding 29,200 ÷ 10,000 = \$2.92 per Share 30,000 ÷ 10,000 = \$3.00 per Share q. Stockholders' equity - Preferred rights Avg. common shares outstanding (292,200 - 80,000) ÷ 10,000 = \$21.22 per Share (268,000 - 80,000) ÷ 10,000 = \$18.80 per Share r. Market price ÷ EPS 12.50 ÷ 2.92 = 4.28 11.75 ÷ 3.00 = 3.92 s. Dividends per share ÷ Market price 0.50 ÷ 12.50 = 4 % 0.50 ÷11.75 = 4.26% *Averages cannot be computed from the data provided in the