The condensed financial statements of Westward Corporation for 2006 are presented below.
Westward CorporationWestward Corporation
Balance SheetIncome Statement
December 31, 2006For the Year Ended December 31, 2006
AssetsRevenues$2,000,000
Current assetsExpenses
Cash and temporaryCost of goods sold1,080,000
investments$30,000Selling and administrative
Accounts receivable70,000expenses495,000
Inventories120,000Interest expense30,000
Total current assets220,000Total expenses1,605,000
Property, plant, andIncome before income taxes395,000
equipment (net)780,000Income tax expense140,000
Total assets$1,000,000Net income$255,000
Liabilities and Stockholders’ Equity
Current liabilities$80,000
Long-term liabilities300,000
Common stockholders’ equity620,000
Total liabilities and
stockholders’ equity$1,000,000
Westward CorporationWestward Corporation
Balance SheetIncome Statement
December 31, 2005For the Year Ended December 31, 2005
AssetsRevenues$2,500,000
Current assetsExpenses
Cash and temporaryCost of goods sold1,750,000
investments$40,000Selling and administrative
Accounts receivable90,000expenses500,000
Inventories150,000Interest expense30,000
Total current assets280,000Total expenses2,280,000
Property, plant, andIncome before income taxes220,000
equipment (net)800,000Income tax expense77,000
Total assets$1,080,000Net income$143,000
Liabilities and Stockholders’ Equity
Current liabilities$140,000
Long-term liabilities320,000
Common stockholders’ equity620,000
Total liabilities and
stockholders’ equity$1,080,000
Additional data as of December 31, 2004: Inventory = $100,000; Total assets = $900,000; Common stockholders’ equity = $540,000.
Instructions
(a)Current ratio = ___________________________________________________________.
(b)Debt to total assets = _____________________________________________________.
(c)Times interest earned = ___________________________________________________.
(d)Inventory turnover = ______________________________________________________.
(e)Profit margin ratio = ______________________________________________________.
(f)Return on common stockholders’ equity = ____________________________________.
(g)Return on assets = _______________________________________________________.
Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…
TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…
Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…
you need to post your 2-page information flier to share with your Final Project Group.…
discussion: Discuss the methods used at your company to measure and ensure quality products and…