, 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?