Refer to the Financial Statement Data for Patriot Corp

question 39

Essay

Refer to the financial statement data for Patriot Corp.for 2011 and 2010.Complete the table by computing the ratios.
$\begin{array}{lrr}\text { Patiot Corp.}\\\text { Balance Sheet}\\\text { As of December 31}&2011&2010\\\text { Assets: }\\\text { Cash and Cash Equivalents } & \$ 69,000 & \$ 55,250 \\\text { Accounts Receivable } & 126,500 & 80,750 \\\text { Inventory } &\underline{ 92,000} & \underline{63,750}\\\text { Current Assets }&287,500&199,750\\\\\text { Equipment } & 194,063 & 148,750 \\\text { Less: Accumulated depreciation } & \underline{-38,813 }& \underline{-29,750}\\\text { Equipment-Net } & 155,250 & 119,000 \\\text { Land } & 132,250 & 106,250\\\\\text { Total assets:}& \underline{\underline{\$ 575,000}}&\underline{\underline{ \$ 425,001}} \\\\\text { Liabilities: }\\\text { Accounts Payable } & \$ 69,000 & \$ 42,500 \\\text { Accrued Salaries Payable } & 51,750 & 42,500 \\\text { Rent Expense Payable } & 35,750 & 28,500 \\\text { Income Tax Payable } &\underline{ 4,788} & \underline{1,250}\\\text { Current Liabilities }&161,288&114,750\\\\\text { Long-term note payable}&\underline{172,500}&\underline{102,000}\\\text { Total Liabilities}&333,788&216,750\\\\\text { Stockholders' Equity: }\\\text { Common stock } & 115,000 & 89,250 \\\text { Retained earnings } & \underline{126,212} & \underline{119,000}\\\\\text { Total liabilities and stockholders' equity: }&\underline{\underline{\$ 575,000}}&\underline{\underline{\$ 425,000}}\end{array}$
$\begin{array} { l l l l } \text {Patriot Corp.}\\\text {Income statement}\\\text {For the year ended December 31, 2011}\\\\ \\\text { Revenues } & \$ 373,750 \\ \text { Cast of gouds suld } &\underline{ ( 224,250 ) }& \\ \text { Grass Prafit } & & \$ 149500\\\\ \\\text { Operating Expenses }\\\text { Depreciation expense } & (9,062) \\\text { Salary expense } & (56,063) \\\text { Insurance Expense } & (44,850) \\\text { Rent Expense } & (18,688) \\\text { Interest Expense } & \underline{(6,120)}\\\text { Total Operating Expenses }&&\underline{(134.783)}\\\\\text {Income from Operations } &&14,717 \\\text {Income Tax Expense}&&\underline{(4415)} \\\\\text { Net income }&&\underline{\underline{\$ 10,302}}\\\\\text { Dividends paid to Common Shareholders }&\$ 3.090\end{array}$
Financial Ratio to be calculated:
$\begin{array}{|l|l|l|}\hline&2011&2010\\\hline \text { Current Ratio}& & \\\hline \text { Quick Ratio}&& \\\hline \text { Days Accounts Receivable}&& \mathrm{N} / \mathrm{A} \\\hline \text { Days Inventory}&& \mathrm{N} / \mathrm{A} \\\hline \text { Days Accounts Payable}&& \mathrm{N} / \mathrm{A} \\\hline \text { Net Days Working Capital}&& \mathrm{N} / \mathrm{A} \\\hline \text { Long-term Debt to Long-term Capital Ratio}&& \\\hline \text { Long-term Debt to Shareholders' Equity ratio}&& \\\hline \text { Liabilities to Total Assets}&& \\\hline \text { Interest Coverage ratio}&& \mathrm{N} / \mathrm{A} \\\hline \text { N/A - Not Applicable for the given year}&& \\\hline\end{array}$

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