Purpose: (L.O. 5) This exercise will give you practice in developing key ratios.
The balance sheets at December 31, 2014 and December 31, 2013 and the income statement and statement of cash flows for 2014 for the M.F. Specie Corporation are presented below:
Additional information: Dividends of $.50 per share were paid in 2014 to common stockholders. All sales during 2014 were on credit. The market value per share of common stock was $30 at December 31, 2014. The marketable securities are classified as available-for-sale securities. No disposals of plant assets occurred during the year.
(a) Fill in the blanks below with the appropriate amounts to develop ratios for the M.F. Specie Corporation (you do not have to compute the ratios, but a full solution is provided if you choose to do so):
$_________________________ by $_________________________.
$_________________________ by $_________________________ .
$_________________________ by ...