QS 17-10 (Algo) Analyzing effect of transactions on current ratio LO P3 At Its prior year-end, VPN Company reported current assets of $60,500 and current liabilities of $55,200. 1. Acquired Inventory for $220 cash. 2. Sold a long-term asset (equipment) for $4,100 cash. 3. Accrued wages payable of $1,600. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction 1. 2. 3. Current Assets Current Liabilities Current Ratio
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- Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.jDL Coroproation Selected Financial Data as at december 21,2016 Current asset 2,50,000$ Current Liabilities 1,50,000$ Inventories 60,000$ Accounts Receivable 45,000$ Revenue 9,50,000$ Cost of Good Sold 6,75,000$ Note: Ignore averaging for this question JDL's Quick ratio is: 1 0.8 2.45 1.27 JDL's average collection period is: 8 days 11 days 17 days 20 days JDL's inventory turnover is: 9.50 times 11.25 times 4.50 times 5.43 times JDL's receivables turnover is: 24.34 times 22.56 times 21.11 times 20.11 times
- Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $661,910Interest expense 116,810Average total assets 6,280,000Determine the return on total assets. If required, round the answer to one decimal place.fill in the blank 1 %Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $418,290 Interest expense 73,810 Average total assets 3,700,000 Determine the return on total assets. If required, round the answer to one decimal place.fill in the blank 1 %Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements. For Years Ended December 31 2021 Sales: Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets 2020 $436,580 $ 334,456 262,821 173,759 61,994 39,292 Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 212,045 122,411 46, 155 101,286 72,473 13,480 $ 58,993 $ 37,225 29,432 75,587 46,824 9,599 2021 $ 54,789 0 100, 200 $154,989 $ 22,628 72,000 9,000 51,361 2019 $ 232,100 148,544 83,556 30,637 19,264 49,901 33,655 6,832 $ 26,823 2020 $36,670 900 91,178…
- wo years. EXERCISE 15-2 Financial Ratios for Assessing Liquidity LO15-2 ending December 31 appear below. The company did not issue any new common stock during the payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was this year was $18. All of the company’s sales are on account. year Deceof 800,000 shares of common stock were outstanding, The interest rate on the bond year. $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash .... $ 1,280 $ 1,560 Accounts receivable, net 12,300 9,100 Inventory .... 9,700 8,200 Prepaid expenses 1,800 2,100 Total current assets 25,080 20,960 Property and equipment: Land ..... 6,000 6,000 Buildings and equipment, net .. 19,200 19,000 epeA Total property and equipment ... 25,200 25,000 Total assets $50,280 $45,960 Liabilities and Stockholders' Equity Current…1. Use ratios to analyze a company's liquidity and solvency. Calculate Select Ratios - Excel FILE НОМE INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 A A % Alignment Number Conditional Format as Formatting - Table - Paste I Cell Cells Styles - Clipboard Font Styles B36 fx A B C D 1 Condensed financial statements for Games Galore are summarized below: 2 3 Balance Sheet 2016 2015 185,000 $ 80,000 4 Cash $ 143,000 59,000 134,000 5 Accounts Receivable, Net 6 Inventory 104,000 7 Prepaid Insurance 11,900 5,880 Total Current Assets 380,900 341,880 9 Property and Equipment, Net 514,500 407,000 10 Total Assets $ 895,400 $ 748,880 11 12 Current Liabilities 2$ 85,300 $ 96,800 13 Long-term Liabilities 284,000 224,000 Total Liabilities 369,300 299,000 320,800 299,000 14 15 Contributed Capital 16 Retained Earnings Total Stockholders' Equity 227,100 129,080 428,080 17 526,100 18 Total Liabilities and Stockholders' Equity $ 895,400 $ 748,880 19 20 Income Statement $ 3,031,000…Total assets turnover: 1.1x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 3.75x Fixed assets turnover: 2.5x Current ratio: 2.0x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. 1 Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash Accounts receivable Inventories Fixed assets Total assets Sales $ $ $330,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ $ $ 49,500 115,500 Check My Work (2 remaini
- TEST YOUR UNDERSTANDING A Review of Ratio Analysis Activity 10 Y ORACLE CORPORATION Ear the fiscal year ended. Current ratio 5/31/97 5/31/98 1.74 5/31/99 (PAL/S) 1.79 1.70 (P/L/S) Debt ratio 0.491 0.492 0.488 (P/L/S) Return on sales 0.15 0.11 ´ 0.14 (РLIS) Return on assets 0.18 0.14 0.18 Source: Disclosure, Ina, Compact D/SEC, 2000. 1. In the left-hand margin above, circle whether the ratio measures (P)rofitability, short-term (L)iquidity - the ability to pay current debt, or long-term (S)ölvency - the ability to pay long-term debt. 2. For each short-term liquidity ratio above, circle the ratio indicating the greatest ability to pay current liabilities for the `three years of information presented. This company appears to (have / not have) the ability to pay current debt. 3. For each long-term solvency ratio above, circle the ratio indicating the least amount of debt financing for the three years of information presented. This company relies more heavily on (debt / equity) to finance…PE.17-09B - Return on total assets A company reports the following income statement and balance sheet information for the current year: Net income Interest expense Average total assets $410,000 90,000 5,000,000 Determine the return on total assets. I %Suppose the 2017 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.40 billion at the beginning of the year and $3.54 billion at the end of the year. Compute 3M Company's receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.) times Accounts receivable turnover ratio SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL Compute 3M Company's average collection period for accounts receivable in days. (Round answer to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Average collection period days