Question & Answer: ELCAMINO COMPANY Comparative Balance Sheet December 31, Assets Debt investments.. Inventory .. 2017 2016 Cash…$ 25,0…..

Would like to check my answers to question 1-10 against the correct answers for computing ratios. Specific questions: what’s included in a “current” asset or liability? What’s the ratio represent on return of common stockholders equity? Are the ratios (#s 3 and 9) represented as “x”:1?

ELCAMINO COMPANY Comparative Balance Sheet December 31, Assets Debt investments.. Inventory .. 2017 2016 Cash…$ 25,000 40,000 60,000 30,000 170,000 Property, plant and equipment (net) . 170,000 200,000 20,000 50,000 140,000 Total assets.. Liabilities and stockholders’ equity Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings . . 25,000 30,000 90,000 160,000 160,000 145,000 105,000 75,000 Total liabilities and stockholders’ equy5.000 $500.000 40,000 75,000 ELCAMINO COMPANY Income Statement For the Year Ended December 31, 2017 Net sales (all on credit).. Cost of goods sold Gross profit Expenses $360,000 184,000 176,000 $11,000 Interest expense Selling expenses. Administrative expenses 20,000 61,000 115,000 35,000 S 80,000 Income tax expense Net incom Additional information: a. Cash dividends of $50,000 were declared and paid on common stock in 2017. b. Weighted-average number of shares of common stock outstanding during 2017 was c. d. 50,000 shares. Market price of common stock on December 31, 2017, was $16 per share. Net cash provided by operating activities for 2017 was $70,000.