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FRIZELL COMPANY Balance Sheets December 31 Assets 2014 2013 $ 69,100 $ 64,400 54

ID: 2499142 • Letter: F

Question

FRIZELL COMPANY
Balance Sheets
December 31

Assets

2014

2013

$ 69,100

$ 64,400

54,300

39,700

105,900

90,300

238,700

165,400

28,300

28,600

133,900

133,900

263,000

184,400

$893,200

$706,700

Liabilities and Stockholders’ Equity

$170,700

$101,600

64,700

54,500

40,200

40,200

250,800

170,600

201,900

201,900

164,900

137,900

$893,200

$706,700

FRIZELL COMPANY
Income Statements
For the Years Ended December 31

2014

2013

$895,500

$799,400

640,900

575,700

254,600

223,700

191,500

159,600

$ 63,100

$ 64,100

(a1)

2013

2014

% Change

LIQUIDITY

2013

2014

% Change

PROFITABILITY

(b)

Situation

Ratio

2014

2015

% Change

The following financial information is for Frizell Company.

FRIZELL COMPANY
Balance Sheets
December 31

Assets

2014

2013

Cash

$ 69,100

$ 64,400

Debt investments (short-term)

54,300

39,700

Accounts receivable

105,900

90,300

Inventory

238,700

165,400

Prepaid expenses

28,300

28,600

Land

133,900

133,900

Building and equipment (net)

263,000

184,400

Total assets

$893,200

$706,700

Liabilities and Stockholders’ Equity

Notes payable

$170,700

$101,600

Accounts payable

64,700

54,500

Accrued liabilities

40,200

40,200

Bonds payable, due 2017

250,800

170,600

Common stock, $10 par

201,900

201,900

Retained earnings

164,900

137,900

Total liabilities and stockholders’ equity

$893,200

$706,700

FRIZELL COMPANY
Income Statements
For the Years Ended December 31

2014

2013

Sales revenue

$895,500

$799,400

Cost of goods sold

640,900

575,700

Gross profit

254,600

223,700

Operating expenses

191,500

159,600

Net income

$ 63,100

$ 64,100


Additional information:
1. Inventory at the beginning of 2013 was $115,200. 2. Accounts receivable (net) at the beginning of 2013 were $88,800. 3. Total assets at the beginning of 2013 were $635,400. 4. No common stock transactions occurred during 2013 or 2014. 5. All sales were on account.

Explanation / Answer

Particulars 2014 2013 Perentage change Current Assets (A) 496300 388400 Current Laibilities (B) 275600 196300 Current Ratio (A/B) 1.80079826 1.97860418 -0.17780592 Sales (A) 895500 799400 Average accounts receivable (B) 98100 89550 Accounts Receivable turnover (A/B) 9.12844037 8.9268565 0.201583862 Sales (A) 895500 799400 Average Inventory (B) 202050 140300 Inventory Turnover (A/B) 4.43207127 5.69779045 -1.26571918 Net Income (A) 63100 64100 Sales (B) 895500 799400 Gross margin (A/B) 0.07046343 0.08018514 Sales (A) 895500 799400 Total Assets (B) 893200 706700 Assets turnover (A/B) 1.00257501 1.13117306 -0.12859805 Net Income (A) 63100 64100 Total Assets (B) 893200 706700 Return on Assets (A/B) 0.07064487 0.09070327 -0.0200584 Net Income (A) 63100 64100 Outstanding shares (B) 20190 20190 Earning Per Share (A/B) 3.12530956 3.17483903 -0.04952947