Problem 14-5A Condensed statement of financial position and income statement data for Speedway Corpo

Problem 14-5A Condensed statement of financial position and income statement data for Speedway Corporation follow: 2016 $17,9SPEEDWAY CORPORATION Income Statement Year Ended December 31 2018 Sales Less: Sales returns and allowances Net sales Cost ofCalculate the following ratios for 2017 and 2018: (Round answers to 1 decimal place, e.g. 5.2:1 or 5.29 or 5.2. Enter negativIdentify whether each ratio calculated in the above part was better, worse, or unchanged between 2017 and 2018. 1. Current ra

Problem 14-5A Condensed statement of financial position and income statement data for Speedway Corporation follow: 2016 $17,900 48,100 63,700 129,700 SPEEDWAY CORPORATION Statement of Financial Position December 31 2018 2017 Assets Current assets Cash $25,200 $20,100 Accounts receivable (net) 55,300 45,300 Inventory 100,000 85,100 Total current assets 180,500 150,500 Long-term investments 57,500 69,700 Property, plant, and equipment (net) 498,900 371,800 Total assets $736,900 $592,000 Liabilities and Shareholders' Equity Liabilities Current liabilities $85,700 $79,600 Non-current liabilities 155,700 85,400 Total liabilities 241,400 165,000 Shareholders' equity Common shares 329,700 302,700 Retained earnings 165,800 124,300 Total shareholders' equity 495,500 427,000 Total liabilities and shareholders' equity $736,900 $592,000 256,000 $431,600 $30,100 19,900 50,000 299,100 82,500 381,600 $431,600 SPEEDWAY CORPORATION Income Statement Year Ended December 31 2018 Sales $747,100 Less: Sales returns and allowances 40,400 Net sales 706,700 Cost of goods sold 448,700 Gross profit 258,000 Operating expenses 150,000 Income from operations 108,000 2017 $509,900 49,900 460,000 300,800 159,200 83,400 75,800 SPEEDWAY CORPORATION Income Statement Year Ended December 31 2018 Sales Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense $747,100 40,400 706,700 448,700 258,000 150,000 108,000 10,100 97,900 19,580 $78,320 2017 $509,900 49,900 460,000 300,800 159,200 83,400 75,800 3,950 71,850 14,370 $57,480 Net Income Additional information: 1. The allowance for doubtful accounts was $4,800 in 2016, $4,500 in 2017, and $5,000 in 2018. 2. All sales were credit sales. 3. Net cash provided by operating activities was $120,100 in 2017 and $102,200 in 2018. 4. Net capital expenditures were $159,200 for 2017 and $180,500 for 2018. Calculate the following ratios for 2017 and 2018: (Round answers to 1 decimal place, e.g. 5.2:1 or 5.29 or 5.2. Enter negative answers preceeding either 2018 2017 1. Current ratio :1 2. Receivables turnover times times 3. Inventory turnover times times 4. Debt to total assets 5. Times interest earned times times 6. Free cash flow 7. Gross profit margin 8. Profit margin 9. Asset turnover times times 10. Return on assets Identify whether each ratio calculated in the above part was better, worse, or unchanged between 2017 and 2018. 1. Current ratio 2. Receivables turnover 3. Inventory turnover 4. Debt to total assets 5. Times interest earned Identify whether each ratio calculated in the above part was better, worse, or unchanged between 2017 and 2018. 1. Current ratio 2. Receivables turnover 3. Inventory turnover 4. Debt to total assets 5. Times interest earned 6. Free cash flow 7. Gross profit margin 8. Profit margin 9. Asset turnover 10. Return on assets Indicate whether overall (1) liquidity, (2) solvency, and (3) profitability improved, deteriorated, or remained the same between 2017 and 2018. (1) Liquidity (2) Solvency (3) Profitability

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