Ratios from Comparative and Common-Size Data 14f Ratios from Comparative...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Ratios from Comparative and Common-Size Data 14f
Ratios from Comparative and Common-Size Data Consider the following financial statements for Vega Company. During the year, management obtained additional bond financing to enlarge its production facilities. The plant addition produced a new high-margin product, which is supposed to improve the average rate of gross profit and return on sales. As a potential investor, you decide to analyze the financial statements: VEGA COMPANY Balance Sheets (Thousands of Dollars) Dec. 31, 2013 Dec. 31, 2012 Assets Cash $16,100 $21,000 39,000 Accounts receivable (net) 21,400 105,000 72,000 Inventory 3,000 Prepaid expenses 1,500 427,500 463,500 Plant and other assets (net) $630,000 $540,000 Total Assets Liabilities and Stockholders' Equity Current liabilities $77,000 $46,000 9% Bonds payable 188,500 151,000 61,000 8% Preferred stock, $50 Par Value 61,000 226,000 226,000 Common stock, $10 Par Value 82,500 61,000 Retained earnings $630,000 $540,000 Total Liabilities and Stockholders' Equity
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
