Analysis of Financial Statements.The market value of Farmington Corp.'s common shares was quoted at $54 per share at December 31, 2015, and 2014. Planetarium 's balance sheet at December 31, 2015, and 2014, and statement of income and retained earnings for the years then ended are presented below:
InstructionsBased on the above information, compute the following (for the year 2015 only): (Show supporting computations in good form.)
(a) Current ratio.
(b) Acid-test (quick) ratio.
(c) Receivables turnover.(d) Inventory turnover.(e) Book value per share of common stock.(f) Earnings per share on common stock.(g) Price-earnings ratio on common stock.(h) Payout ratio on common stock.

Question

Analysis of Financial Statements.The market value of Farmington Corp.'s common shares was quoted at $54 per share at December 31, 2015, and 2014. Planetarium 's balance sheet at December 31, 2015, and 2014, and statement of income and retained earnings for the years then ended are presented below:   
InstructionsBased on the above information, compute the following (for the year 2015 only): (Show supporting computations in good form.)
(a) Current ratio.
(b) Acid-test (quick) ratio.
(c) Receivables turnover.(d) Inventory turnover.(e) Book value per share of common stock.(f) Earnings per share on common stock.(g) Price-earnings ratio on common stock.(h) Payout ratio on common stock.

Quizplus · Accepted Answer

The Answer of Analysis of Financial Statements.The market value of Farmington Corp.'s common shares was quoted at $54 per share at December 31, 2015, and 2014. Planetarium 's balance sheet at December 31, 2015, and 2014, and statement of income and retained earnings for the years then ended are presented below:   
InstructionsBased on the above information, compute the following (for the year 2015 only): (Show supporting computations in good form.)
(a) Current ratio.
(b) Acid-test (quick) ratio.
(c) Receivables turnover.(d) Inventory turnover.(e) Book value per share of common stock.(f) Earnings per share on common stock.(g) Price-earnings ratio on common stock.(h) Payout ratio on common stock.