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QUESTION

Analyzing financial statement assignment

The following (given in scrambled order) are accounts and balances from the accounting records of Alleg, Inc., as of December 31, 2012, after the books were closed for the year. 

Common stock, authorized 21,000 share 

At $1 par value, issued 12,000 shares $12,000

Additional paid-in capital 38,000

Cash 14,000

Marketable securities 17,000

Accounts receivable 26,000

Accounts Payable 16,000

Current maturities of long-term debt 11,000

Mortgages payable 80,000

Bonds payable 65,000

Inventory 33,000

Land and buildings 57,000

Machinery and equipment 120,000

Goodwill 13,000

Patents 9,000

Other assets 45,000

Deferred income taxes (long-term liability) 18,000

Retained earnings 33,000

Accumulated depreciation 61,000

Bonds and mortgages generally have 10-30 years until maturity. Marketable securities are short-term investments that can be converted to cash in a matter of minutes. 

Required: 

Prepare a classified balance sheet with a proper heading on a spreadsheet. For assets, use the classifications of current assets, plant and equipment, intangibles, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.

Compute the total asset turnover rate assuming that total revenues in 2012 were $682,500. Round to the nearest hundredth, e.g. 3.33.

Assume that Alleg’s primary competitor has an asset turnover of 2.12. What does this tell you about Alleg’s asset management?

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