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
|Additional paid-in capital||38,000|
|Current maturities of long-term debt||11,000|
|Land and buildings||57,000|
|Machinery and equipment||120,000|
|Deferred income taxes (long-term liability)||18,000|
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.
- 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 Allegâ€™s primary competitor has an asset turnover of 2.12. What does this tell you about Allegâ€™s asset management?