Use the following information to answer questions 50 to 55 The financial stateme

Question

Use the following information to answer questions 50 to 55 The financial statements of Belleville Corporation appear below: BELLEVILLE CORPORATION Comparative Statements of Financial Position For the Period ended December 31 Assets Cash Trading investments Accounts receivable Merchandise inventory Property, plant, and equipment 2016 2015 35,250 40,000 15,000 60,000 50,000 30,000 60,000 70,000 260,000 300,000 $420,250 $500,000 Total assets Liabilities and shareholders' equity Accounts payable Short-term bank loan payable 20,000 30,000 40,000 90,000 80,000 160,000 170,000 145,000 110,250 75,000 $400,250 $500,000 Bonds payable Common shares Retained earnings Total liabilities and shareholders' equity

Explanation / Answer

50 Accounts Receivable Increased by 66.67% ((50000/30000)-1)*100 Accounts payable decreased by 33.33% ((30000/20000)-1)*100 ANSWER:.(C) 51 Accounts Receivable Turnover=Sales/AverageAccounts receivable 10 Times (400000/(50000+30000)/2 Average Collection Period in days 36.5 (365/Accounts receivable turnover) (365/10) ANSWER:(b) 52 Accounts receivable Turnover in 2015 18 Times Accounts receivable Turnover in 2016 10 Times Accounts receivable Tirnover has deteriorated Gross Profit margin for 2015 46% Gross Profit margin for 2016 52.50% (210000/400000)*100% Gross Profit margin has improved ANSWER:(d) 53 Return on Equity in 2016 (Profit/Average Equity) Equity in the beginning=145000+75000= 220000 Equity in the end of year=170000+110250= 280250 Average Equity in 2016=(220000+280250)/2 250125 Return on Equity in 2016= 32.08% (80250/250125)*100% Earning per Share in 2016=Profit/AverageNumber of Shares $       1.34 (80250/60000 ANSWER:(a)

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