The following (given in scrambled order) are accounts and balances from the accounting records of Alleg, Inc., as of December 31, 2012, after the books were closed for the year.
|
Common stock, authorized 21,000 share
At $1 par value, issued 12,000 shares
|
$12,000
|
|
Additional paid-in capital
|
38,000
|
|
Cash
|
14,000
|
|
Marketable securities
|
17,000
|
|
Accounts receivable
|
26,000
|
|
Accounts Payable
|
16,000
|
|
Current maturities of long-term debt
|
11,000
|
|
Mortgages payable
|
80,000
|
|
Bonds payable
|
65,000
|
|
Inventory
|
33,000
|
|
Land and buildings
|
57,000
|
|
Machinery and equipment
|
120,000
|
|
Goodwill
|
13,000
|
|
Patents
|
9,000
|
|
Other assets
|
45,000
|
|
Deferred income taxes (long-term liability)
|
18,000
|
|
Retained earnings
|
33,000
|
|
Accumulated depreciation
|
61,000
|
Bonds and mortgages generally have 10-30 years until maturity. Marketable securities are short-term investments that can be converted to cash in a matter of minutes.
Required:
- Prepare a classified balance sheet with a proper heading on a spreadsheet. For assets, use the classifications of current assets, plant and equipment, intangibles, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.
- Compute the total asset turnover rate assuming that total revenues in 2012 were $682,500. Round to the nearest hundredth, e.g. 3.33.
- Assume that Alleg s primary competitor has an asset turnover of 2.12. What does this tell you about Alleg s asset management?