classified balance sheet
1. Alleg, Inc.
Balance Sheet
December 31, 2012 Assets
Current Assets
Cash And Cash Equivalents
14,000
Marketable securities
17,000
Accounts Receivables, Net
26,000
Inventory
33,000
90,000
Total Long Term Assets
Land and Buildings
57,000
Machinery and equipment
120,000
Accumulated Depreciation
61,000
Goodwill
13,000
Intangible Assets
9,000
Other Assets
45,000
183,000
Total Assets
273,000
Liabilities and Stockholder's Equity
Current Liabilities
Accounts Payable
16,000
Current maturities of long-term debt
11,000
Total Current Liabilities
27,000
Long Term Liabilities
Deferred income taxes (long Term Liability)
18,000
Bonds Payable
65,000
Mortgages payable
80,000
163,000
Total Liabilities
190,000
Stockholders' Equity
Additional paid-in capital
38,000
Common stock, authorized 21,000 share
At $1 par value, issued 12,000 shares
12,000
Retained Earnings
33,000
83,000
Total Liability & Stockholder Equity
273,000
2.
Total Asset Turnover Rate
Total Revenue (Numerator)
682,500
Average Total Assets (Denominator)
273,000
Total Asset Turnover Rate
2.50
3. The total asset turnover rate “measures the activity of the assets and the ability of the firm to generate sales through use of the assets” (Gibson, 2013). This total asset turnover rate for Alleg, Inc. is 2.50 while their competitor’s total asset turnover rate is 2.12. Alleg, Inc. has a better rate which proves that their management of their assets is more effective than their competition.
References
Gibson, C. H. (2013). Financial Reporting & Analysis. Mason, OH: South- Western, Cengage Learning.
Balance Sheet
December 31, 2012 Assets
Current Assets
Cash And Cash Equivalents
14,000
Marketable securities
17,000
Accounts Receivables, Net
26,000
Inventory
33,000
90,000
Total Long Term Assets
Land and Buildings
57,000
Machinery and equipment
120,000
Accumulated Depreciation
61,000
Goodwill
13,000
Intangible Assets
9,000
Other Assets
45,000
183,000
Total Assets
273,000
Liabilities and Stockholder's Equity
Current Liabilities
Accounts Payable
16,000
Current maturities of long-term debt
11,000
Total Current Liabilities
27,000
Long Term Liabilities
Deferred income taxes (long Term Liability)
18,000
Bonds Payable
65,000
Mortgages payable
80,000
163,000
Total Liabilities
190,000
Stockholders' Equity
Additional paid-in capital
38,000
Common stock, authorized 21,000 share
At $1 par value, issued 12,000 shares
12,000
Retained Earnings
33,000
83,000
Total Liability & Stockholder Equity
273,000
2.
Total Asset Turnover Rate
Total Revenue (Numerator)
682,500
Average Total Assets (Denominator)
273,000
Total Asset Turnover Rate
2.50
3. The total asset turnover rate “measures the activity of the assets and the ability of the firm to generate sales through use of the assets” (Gibson, 2013). This total asset turnover rate for Alleg, Inc. is 2.50 while their competitor’s total asset turnover rate is 2.12. Alleg, Inc. has a better rate which proves that their management of their assets is more effective than their competition.
References
Gibson, C. H. (2013). Financial Reporting & Analysis. Mason, OH: South- Western, Cengage Learning.