Accounting Assignment | Custom Assignment Help

The following items are taken from the financial statements of Grove Company for 2017:

•           Accounts payable                                           $18,500
•           Accounts receivable                                            8,000
•           Accumulated depreciation-equipment             4,800
•           Bonds payable                                                  18,000
•           Cash                                                                   24,000
•           Common stock                                                  25,000
•           Cost of goods sold                                            27,000
•           Depreciation expense                                         4,800
•           Dividends                                                           5,300
•           Equipment                                                         44,000
•           Interest expense                                                  2,500
•           Patents                                                                 7,500
•           Retained earnings, January 1                          16,000
•           Salaries and wages expense                              5,200
•           Sales revenue                                                    50,500
•           Supplies                                                               4,500

Instructions

(a) Prepare an income statement and a classified balance sheet for Grove Company.

(b)    Compute the following ratios and values:

1. Current ratio

2. Debt to assets ratio

3. Working capital

4. Earnings per share (Grove’s average number of shares outstanding during the year was 5,000.)