Appendix B Organizational Char Minitrex VP Marketing (Jon Bettman) Director Sales (Georges Degas) VP Insurance (Harold Blumfen) VP Financing (Mariella Hopkins) CFO Director IT (Denny Khan) Exercise 13-13 The condensed financial statements of Elliott Company for the years 2013 and 2014 are presented below. ELLIOTT COMPANY Balance Sheets December 31 (in thousands) 2014 2013 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 506 436 Inventory 519 449 Prepaid expenses 130 160 Total current assets 1,485 1,405 Property, plant, and equipment (net) 410 380 Investments 46 46 Intangibles and other assets 530 510 Total assets $2,471 $2,341 Current liabilities $856 $826 Long-term liabilities 539 439 Stockholders’ equity—common 1,076 1,076 Total liabilities and stockholders’ equity $2,471 $2,341 ELLIOTT COMPANY Income Statements For the Year Ended December 31 (in thousands) 2014 2013 Sales revenue $3,859 $3,519 Costs and expenses Cost of goods sold 1,006 926 Selling & administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,416 3,276 Income before income taxes 443 243 Income tax expense 177 97 Net income $ 266 $ 146 Compute the following ratios for 2014 and 2013. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2012, was $430.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2012, were $2,790.) (e) Return on common stockholders’ equity. (Equity on December 31, 2012, was $970.) (f) Debt to assets ratio. (g) Times interest earned. 2014 2013 Current ratio. :1 :1 Inventory turnover. Profit margin. % % Return on assets. % % Return on common stockholders’ equity. % % Debt to assets ratio. % % Times interest earned. times times Click if you would like to Show Work for this question: Open Show Work Exercise 13-9 Kinder Company has these comparative balance sheet data: KINDER COMPANY Balance Sheets December 31 2014 2013 Cash $ 36,210 $ 72,420 Accounts receivable (net) 168,980 144,840 Inventory 144,840 120,700 Plant assets (net) 482,800 434,520 $832,830 $772,480 Accounts payable $ 120,700 $ 144,840 Mortgage payable (15%) 241,400 241,400 Common stock, $10 par 337,960 289,680 Retained earnings 132,770 96,560 $832,830 $772,480 Additional information for 2014: 1. Net income was $32,000. 2. Sales on account were $386,100. Sales returns and allowances amounted to $28,100. 3. Cost of goods sold was $228,200. 4. Net cash provided by operating activities was $57,600. 5. Capital expenditures were $28,600, and cash dividends were $20,900. Compute the following ratios at December 31, 2014. (Round all answers to 2 decimal places, e.g. 1.83.) (a) Current ratio. :1 (b) Accounts receivable turnover. times (c) Avera.