Question Details

The following ratios have been computed for Ryder Company 


Ex. 1
The following ratios have been computed for Ryder Company for 2002.
Profit margin ratio 20%
Times interest earned ratio 9 times
Receivable turnover ratio 3 times
Acid test ratio 2:1
Current ratio 3:1
Debt to total assets ratio 20%
The 2002 financial statements for Ryder Company with missing information follows:
RYDER COMPANY
Comparative Balance Sheet
December 31,
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Assets 2002 2001
Cash ......................................................................................... $ 30,000 $ 45,000
Short-term investments.............................................................. 10,000 25,000
Accounts receivable (net) ......................................................... ? (6) 40,000
Inventory ................................................................................... ? (8) 50,000
Property, plant, and equipment (net) ........................................ 200,000 160,000
Total assets ....................................................................... $ ? (9) $320,000
Liabilities and stockholders' equity
Accounts payable ..................................................................... $ ? (7) $ 30,000
Short-term notes payable ......................................................... 40,000 35,000
Bonds payable .......................................................................... ? (10) 20,000
Common stock .......................................................................... 220,000 200,000
Retained earnings .................................................................... 60,000 35,000
Total liabilities and stockholders' equity.............................. $ ? (11) $320,000
RYDER COMPANY
Income Statement
For the Year Ended December 31, 2002
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Net sales .................................................................................. $150,000
Cost of goods sold .................................................................... 75,000
Gross profit................................................................................ 75,000
Expenses:
Depreciation expense ......................................................... $ ? (5)
Interest expense ................................................................. 5,000
Selling expenses ................................................................. 8,000
Administrative expenses ..................................................... 12,000
Total expenses .............................................................. ? (4)
Income before income taxes ..................................................... ? (2)
Income tax expense ............................................................ ? (3)
Net income ............................................................................... $ ? (1)
Instructions
Use the above ratios and information from Ryder Company financial statements to fill in the
missing information on the financial statements. Follow the sequence indicated. Show
computations that support your answers.



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