《financial Accouning, 9e财务会计 Warren》ch17.pptVIP

Lincoln CompanyComparative Balance SheetDecember 31, 2006 and 2005 Assets Current assets $ 550,000 $ 533,000 $ 17,000 3.2% Long-term investments 95,000 177,500 (82,500) (46.5%) Fixed assets (net) 444,500 470,000 (25,500) (5.4%) Intangible assets 50,000 50,000 — Total assets $1,139,500 $1,230,500 $ (91,000) (7.4%) Liabilities Current liabilities $ 210,000 $ 243,000 $ (33,000) (13.6%) Long-term liabilities 100,000 200,000 (100,000) (50.0%) Total liabilities $ 310,000 $ 443,000 $(133,000) (30.0%) Stockholders’ Equity Preferred 6% stock, $100 par $ 150,000 $ 150,000 — Common stock, $10 par 500,000 500,000 — Retained earnings 179,500 137,500 $42,000 30.5% Total stockholders’ equity $ 829,500 $ 787,500 $42,000 5.3% Total liab. SE $1,139,500 $1230,500 $(91,000) (7.4%) Lincoln CompanyComparative Balance SheetDecember 31, 2006 and 2005 Lincoln CompanyComparative Income StatementDecember 31, 2006 and 2005 Lincoln CompanyComparative Balance Sheet Assets Current assets $ 550,000 48.3% $ 533,000 43.3% Long-term investments 95,000 8.3 177,500 14.4 Property, plant, equip. (net) 444,500 39.0 470,000 38.2 Intangible assets 50,000 4.4 50,000 4.1 Total assets $1,139,500 100.0% $1,230,500 100.0% Liabilities Current liabilities $ 210,000 18.4% $ 243,000 19.7% Long-term liabilities 100,000 8.8 200,000 16.3 Total liabilities $ 310,000 27.2% $ 443,000 36.0% Stockholders’ Equity Preferred stock, 6%, $100 par $ 150,000 13.2% $ 150,000 12.2% Common stock, $10 par 500,000 43.9 500,000 40.6 Retained earnings 179,500 15.7 137,500 11.2 Total stockholders’ equity $ 829,500 72.8% $ 787,500 64.0% Total liab. SE $1,139,500 100.0% $1,230,500 100.0% Solvency is the ability of a business to meet its financial obligations (debts) as they are due. Solvency analysis focuses on the ability of a business to pay or otherwise satisfy its current and noncurrent liabilities. This ability is normally assess