Changes in Various RatiosPresented below is selected information for Turner Company:Sales revenueCost of goods soldInterest expenseIncome tax expenseNet incomeCash flow from operating activitiesCapital expendituresAccounts receivable (net), December 31Inventory, December 31Stockholders' equity, December 31Total assets, December 3120192018$950,000 $850,000575,000 545,00020,00020,00027,00030,00065,00055,00070,00060,00045,00045,000126,000 120,000196,000 160,000450,000 400,000750,000675,000RequiredCalculate the following ratios for 2019. The 2018 results are given for comparative purposes.Round answers to one decimal place. Use 365 days in a year.201835.9%8.3%6.5%1. Gross profit percentage2. Return on assets3. Return on sales4. Return on common stockholders' equity(no preferred stock was outstanding)5. Accounts receivable turnover6. Average collection period13.9%8.045.6 days20190 %0 %0 %0 %00 days Accounts payableAccrued liabilitiesTotal Current Liabilities10% Bonds payableTotal LiabilitiesCommon stock, $10 par value (12,500,000 shares) 125,000Retained earningsTotal Stockholders' EquityTotal Liabilities and Stockholders' Equity27,600 23,00025,100 24,80084,100 72,800150,000 150,000234,100 222,800125,00086,800 53,800211,800178,800$445,900 $401,600Requireda. Using the given data, calculate items 1 through 8 below for 2019. Compare the performance of Adams Plastics, Inc., with the following industry averages and comment on its operations.Round all answer to two decimal places.1. Quick ratio:2. Current ratio:3. Accounts Receivable Turnover:4. Inventory turnover:5. Debt-to-equity ratio:6. Gross profit percentage7. Return on sales8. Return on assets:Median Ratios forManufacturers of Plastic andSynthetic Products1.201.907.907,800.9532.70 %3.50 %6.30 %Ratios forAdams Plastics000000 %0%0 %b. Calculate the dividends paid per share of common stock. (Note: Number of shares shown on balance sheet is not shown in thousands. The number of shares "in thousands" is12.500)

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Changes in Various Ratios Presented below is selected information for Turner Company: Sales revenue Cost of goods sold Interest expense Income tax expense Net income Cash flow from operating activities Capital expenditures Accounts receivable (net), December 31 Inventory, December 31 Stockholders' equity, December 31 Total assets, December 31 2019 2018 $950,000 $850,000 575,000 545,000 20,000 20,000 27,000 30,000 65,000 55,000 70,000 60,000 45,000 45,000 126,000 120,000 196,000 160,000 450,000 400,000 750,000 675,000 Required Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. Round answers to one decimal place. Use 365 days in a year. 1. Gross profit percentage 2. Return on assets 3. Return on sales 4. Return on common stockholders' equity (no preferred stock was outstanding) 5. Accounts receivable turnover 6. Average collection period 2018 35.9% 8.3% 6.5% 13.9% 8.0 45.6 days 2019 0 % 0 % 0 % 0 % 0 0 days

Changes in Various Ratios Presented below is selected information for Turner Company: Sales revenue Cost of goods sold Interest expense Income tax expense Net income Cash flow from operating activities Capital expenditures Accounts receivable (net), December 31 Inventory, December 31 Stockholders' equity, December 31 Total assets, December 31 2019 2018 $950,000 $850,000 575,000 545,000 20,000 20,000 27,000 30,000 65,000 55,000 70,000 60,000 45,000 45,000 126,000 120,000 196,000 160,000 450,000 400,000 750,000 675,000 Required Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. Round answers to one decimal place. Use 365 days in a year. 1. Gross profit percentage 2. Return on assets 3. Return on sales 4. Return on common stockholders' equity (no preferred stock was outstanding) 5. Accounts receivable turnover 6. Average collection period 2018 35.9% 8.3% 6.5% 13.9% 8.0 45.6 days 2019 0 % 0 % 0 % 0 % 0 0 days

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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Selected comparative financial statements of Korbin Company follow. Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Assets Current assets Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities Assets Current assets Long-term investments Plant assets, net Total assets 2021 2020 2019 $ 483,981 $ 370,769 $ 257,300 291,357 234,326 164,672 192,624 136,443 92,628 68,725 33,964 43,558 21,356 112,283 80,341 14,943 $ 65,398 $ 41,856 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 2021 $ 57,843 0 51,166 32,628 83,794 52,649 10,793 $ 23,890 66,000 $ 20,253 Common stock 66,000 Other paid-in capital 8,250 Retained earnings 41,423 Total liabilities and equity $…
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Ross Company Comparative Income Statements Sales revenue Cost of goods sold Gross profit on sales Operating expenses Selling expenses Administrative expenses Total Income before income taxes Income tax expense Net income $ Current Year Prior Year (Decrease) 0 $ 0 0 0 0 0 0 0 0$ Increase Percent 0$ 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 Change 0 0 a 0 0 0 0 0 0
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