Student Name: Marcie DeGiovine Class: BA511 6/1 - 9/30/13 Problem 16-19 TANNER COMPANY Computations Earnings before

interest & taxes Interest expense Times interest earned Earnings before interest & taxes Interest expense Net income before taxes Income tax expense Net income Sales on account Average accounts receivable balance Accounts receivable turnover Ending accounts receivable balance Quick assets Current liabilities Acid-test ratio Cash Current assets Current liabilities Current ratio Inventory Cost of goods sold Average inventory Inventory turnover Gross margin Gross margin Net operating income Operating expenses Interest expense Interest rate Bonds payable Current liabilities Bonds payable Total liabilities Net income, less preferred stock Common shares outstanding Earnings per share Total common stock $315,000 $45,000 7.0 Correct! $315,000 $45,000 $270,000 $108,000 $162,000 Correct! $2,700,000 $180,000 15.0 $200,000 Correct! $280,000 $250,000 1.12 $80,000 Correct! $600,000 $250,000 2.40 $320,000 Correct! $1,800,000 $300,000 6.0 Correct! $900,000 Correct! $900,000 $315,000 $585,000 Correct! $45,000 10% $450,000 Correct! $250,000 $450,000 $700,000 Correct! $162,000 $40,000 $4.05 $100,000 Correct!

15

1.12

2.4

Student Name: Marcie DeGiovine Class: BA511 6/1 - 9/30/13 Problem 16-19 Total liabilities Stockholders' equity Debt-to-equity ratio Total stockholders' equity Common stock Retained earnings Liabilities Stockholders' equity Total assets Total assets Current assets Plant & equipment $700,000 $800,000 0.875 Correct! $600,000 $100,000 $700,000 Correct! $700,000 $800,000 $1,500,000 Correct! $1,500,000 $600,000 $900,000 Correct!

TANNER COMPANY Income Statement For the Year Ended December 31 Sales Less cost of goods sold Gross margin Less operating expenses Net operating income Less interest expense Net income before taxes Less income taxes Net income $2,700,000 1,800,000 900,000 585,000 315,000 45,000 270,000 108,000 $162,000 Correct!

TANNER COMPANY Balance Sheet 31-Dec Current assets: Cash Accounts receivable, net Inventory Total current assets Plant and equipment Total assets Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $2.50 par value Retained earnings Total stockholders' equity Total liabilities and equity

$80,000 200,000 320,000 600,000 $1,500,000 $250,000 450,000 700,000 100,000 700,000 800,000 $1,500,000 Correct!

Given Data P16-19 TANNER COMPANY Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (40%) Net income $2,700,000 ? ? ? ? 45,000 ? ? ?

TANNER COMPANY Balance Sheet December 31 Current assets: Cash Accounts receivable, net Inventory Total current assets Plant and equipment Total assets Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and equity Tax rate Typical ratios: Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Times interest earned Earnings per share Return on total assets Balances at beginning of current year: Accounts receivable Inventory Total assets Check figures: Total assets 2.40 1.12 15.0 6.0 0.875 7.0 4.05 14% to 1 to 1 times times to 1 times

? ? ? ? ? ? $250,000 ? ? ? ? ? ? 40%

$160,000 280,000 1,200,000

$1,500,000

Net income

$162,000