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.