- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 1 (92.48 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 2 (75.46 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 3 (54.13 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 4 (59.5 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 5 (54.19 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 6 (42.12 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 7 (95.21 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 8 (77.61 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 9 (49.63 KiB) Viewed 39 times
- Merry Time Lighting Income Statement For The Year Ended December 31 2021 100 000 20 000 120 000 12 000 12 000 2 000 10 (26.64 KiB) Viewed 39 times
Merry Time Lighting Comparative Balance Sheet December 31, 2021 Assets 2021 $ Current Assets: Cash Accounts Receivable Merchandise Inventory Total Current Assets Noncurrent Assets: Equity Investments P,P,&E Acc. Dep.-P,P,&E Total Noncurrent Assets Total Assets Current Liabilities: Accounts Payable Accrued Liabilities Total Current Liabilities Long-term Debt: Notes Payable Total Liabilities Common Stock-No Par Retained Earnings Treasury Stock Total Stockholders' Equity Total Liabilities & S.E. $ Liabilities $ 90,000 $ 20,000 54,000 164,000 50,000 260,000 (60,000) 250,000 414,000 $ 50,000 $ 25,000 75,000 100,000 175,000 201,000 44,000 (6,000) Stockholders' Equity $ 239,000 414,000 $ 2020 40,000 34,000 50,000 124,000 200,000 (40,000) 160,000 284,000 34,000 26,000 60,000 40,000 100,000 168,000 24,000 (8,000) 184,000 284,000
During the period, Merry Time Lighting disposed of property, plant, equipment. Merry Time simply discarded these assets by placing them in the dumpster and thusly did not receive any cash for their disposition. These assets had a book value of $12,000 at the time of their disposition and Merry Time recorded a loss on their disposal. Merry Time did not make any payments on outstanding notes payable during the period but they signed a new note to obtain financing. Merry Time Lighting sold some of their existing shares in treasury during the period and did so at the exact same price they paid to purchase them. Merry Time Lighting also paid cash dividends to its common shareholders during the period. Use the templates below to determine the amount of cash Merry Time Lighting paid to acquire P,P, & E during the period and the amount of cash the firm transferred to shareholders in the form of dividends. The amounts reported on the statement of cash flows regarding the increase in notes payable, the decrease in treasury stock, the issuance of common stock, and the payment for equity investments should simply be for the difference in these accounts reported on the company's comparative balance sheet.
Cash Paid for Plant Asset Acquisition 3 4 Beginning Balance of P,P,&E 5 Less: Book Value of Disposed P,P,& E 6 Book Value of Beginning Assets Still in Service 7 3 Ending Balance of P,P,&E Less: Book Value of Beginning P,P, & E Still in Service 0 Cash Paid to Acquire Plant Assets 1 2 3 Beginning Retained Earnings 4 Add: Net Income 5 6 Less: Cash Dividends Paid 7 Ending Retained Earnings. Cash Paid for Dividend Payments
Merry Time Lighting Statement of Cash Flows Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments: Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Net Cash Used for Investing Activities Cash Flows from Financing Activities: Net Cash Used for Financing Activities Net Increase or Decrease in Cash Cash Balance, 12-31-20 Cash Balance, 12-31-21
Using the information provided (or obtained) on the previous financial statements, compute the following financial ratios for Merry Time Lighting. Information which is necessary for these calculations but not found on the firm's financial statements has been provided for you below. Accounts Receivable Balance, End of 2019 $ 36,000 Inventory Balance, End of 2019 47,000 Market Price Per Share, End of 2021 10.00 Weighted Average Shares Outstanding, 2021 30,000 Preferred Dividends, 2021 Sales Revenue, 2020 790,000 Cost of Goods Sold, 2020 444,000
Formula Reference Table Cash Ratio - Cash/Total Current Liabilities Current Ratio - Total Current Assets/Total Current Liabilities A/R Turnover Ratio - Sales Revenue / ((Current A/R + Prior A/R)/2) Days Sales in Receivables - 365/ AR Turnover Ratio Inventory Turnover Ratio - COGS/ ((Current Inventory + Prior Inventory) / 2) Days Sales in Inventory - 365/ Inventory Turnover Ratio Debt Ratio - Total Liabilities/Total Assets Debt to Equity Ratio - Total Liabilities/ Total Equity Gross Profit Percentage - Gross Profit/ Sales Revenue Profit Margin Ratio - Net Income/ Sales Revenue Earnings Per Share- (Net Income-Preferred Dividends) / Weighted Average Shares Outstanding Price to Earnings Ratio - Market Price of Common Stock/ Earnings per Share
Cash Ratio Merry Time Lighting 2020 Current Ratio Merry Time Lighting 2020 Accounts Receivable Turnover Ratio Merry Time Lighting 2020 Days Sales in Receivables Merry Time Lighting 2020 Inventory Turnover Ratio Merry Time Lighting 2020 Days Sales in Inventory Merry Time Lighting 2020 Debt Ratio Merry Time Lighting 2020 Debt to Equity Ratio Merry Time Lighting 2020 Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Industry Average 2021 0.80 Industry Average 2021 2.30 Industry Average 2021 18.18 Industry Average 2021 20.08 Industry Average 2021 14.29 Industry Average 2021 25.54 Industry Average 2021 0.70 Industry Average 2021 1.10
Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Merry Time Lighting 2021 Gross Profit Percentage Industry Average 2021 0.35 Profit Margin Ratio Industry Average 2021 0.09 Earnings per Share Industry Average 2021 2.75 Price to Earnings Ratio Industry Average 2021 4.50
In the space below express your thoughts on Merry Time Lighting's current financial position. Discussion should focus on how the company's financial ratios compare to their previous ratios as well as the industry average.