The following are the ledgers of XYZ Company for the year ended December 31, 2017. Net Sales 1,890,540.00 Cash 60,100.00 Cost of Goods Sold 1,058,540.00 Short-term Investments 74,000.00 Accounts Receivable Operating Expenses Interest Expense 506,000.00 107,800.00 25,000.00 Merchandise Inventory 133,000.00 Income Tax Expense 86,000.00 Machineries, net 615,300.00 Accounts Payable Income Taxes Payable Long-term Notes Payable Owner's Equity 160,000.00 43,500.00 210,000.00 576,700.00

The following are the ledgers of XYZ Company for the year ended December 31, 2017. Net Sales 1,890,540.00 Cash 60,100.00 Cost of Goods Sold 1,058,540.00 Short-term Investments 74,000.00 Accounts Receivable Operating Expenses Interest Expense 506,000.00 107,800.00 25,000.00 Merchandise Inventory 133,000.00 Income Tax Expense 86,000.00 Machineries, net 615,300.00 Accounts Payable Income Taxes Payable Long-term Notes Payable Owner's Equity 160,000.00 43,500.00 210,000.00 576,700.00

Name: A. What is the company’s gross profit margin?B. What is the company’s
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: A. What is the company’s gross profit margin?B. What is the company’s inventory turnover?C. What is the company’s current ratio?D. What is the company’s return on asset?E. What is the company’s net profit margin? F. What is the company’s days receiv

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 11E

See similar textbooks

Similar questions

The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Compare the calculations for gross margin for A76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
Inventory Analysis Singleton Inc. reported the following information for the current year: Required: Compute Singletons (a) gross profit ratio, (b) inventory turnover ratio, and (c) average days to sell inventory. (Note: Round all answers to two decimal places.)
Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
The following financial results are shown for Smith, Inc. and Jones, Inc. RatiosSmith, Inc.Jones, Inc.Current ratio2.31.9Acid test ratio1.2.9Accounts receivable turnover8.4 times6.8 timesInventory turnover4.7 times3.1 timesDays sales in inventory64 days799 daysDays sales uncollected34.2 days39.7 daysProfit margin ratio3.2% 4.8% Total asset turnover1.11.8 Return on common stockholder' equity 4.6 %6.1% Price earnings ratio18.310.7Dividend yield.89%.90Debt ratio.62.47Times interest earned2.6 times6.2 times From the above financial data, prepare two separate memos. In the first memo, determine which of the two companies would be the better short-term credit risk and explain why. In the second memo, determine which of the two companies the better investment is and explain why. Your explanations must mention the exact ratios and numbers compared to support your choice. ******Answers and memos must be logically written and no grammatical errors.******* Memo #1: The company I selected as the…
Selected information from the comparative financial statements of AppleVerse Company for the year ended December 31 appears below: 2018 2017 Php Php Accounts receivable (net) 175,000 200,000 Inventory 130,000 150,000 Total assets 1,100,000 800,000 Current liabilities 140,000 110,000 Long-term debt 410,000 300,000 Net credit sales 800,000 700,000 Cost of goods sold 600,000 530.000 Interest expense 40.000 25,000 Income tax expense 60.000 29,000 Net income 150.000 85,000 Net cash provided by operating 220,000 135,000 activities Compute for the Receivables Turnover for 2018. O 2.13 O 4.27 O 5.95 O 3.23
The following information is shown in the accounting records of ToDas Company for the current year 2020. Balances as of Jan 1 Cash 620,000; Accounts receivable 670,000; Inventory 860,000; Accounts Payable 530,000. Balances as of Dec 31 Accounts receivable 900,000; Inventory 780,000; Accounts Payable 480,000. The total sales and cost of goods sold were P7,980,000 and P5,830,000, respectively. All sales and all merchandise purchases were made on credit. Various expenses of P1,070,000 were paid on cash. Assume that there were no other pertinent transactions. The cash balance on December 31, 2020
Using these data from the comparative balance sheets of Concord Company, perform a vertical analysis. Accounts receivable (net) Inventory Total assets (Round percentages to 1 decimal place, e.g. 12.1%.) December 31, 2022 December 31, 2021 $418,320 $425,250 816,720 787,500 2,490,000 3,150,000 December 31, 2022 December 31, 2021 Amount Percentage Amount Percentage Accounts receivable (net) $418,320 % $425,250 % Inventory Total assets 816,720 % 787,500 % 2,490,000 % 3,150,000 %
The accounting records of Colton Industries, Inc., provided the data below for the year ended December31, 2020:Sales $1,000,000Cost of goods sold 500,000Depreciation expense 15,000Insurance expense 6,000Selling, general and administrative expenses 140,000Interest expense 20,000Income tax expense 125,000Net income 194,000Decrease in inventory 2,000Increase in accounts receivable 1,400Amortization of bond discount 5,000Decrease in prepaid insurance 300Cash dividends paid 20,000Required: In good form, prepare the operating activities section of the statement of cash flows for 2020using the indirect method.
The following information relates to SE10-5 through SE10-7: (in millions) Net sales... Cost of goods sold SE10-7. Gross profit. Selling and administrative expenses Income from operations Interest expense.. EVANS & SONS, INC. Income Statement For Years Ended December 31, 2019 and 2018 Income before income taxes Income tax expense. Net income (in millions) Assets Current assets Cash and cash equivalents Accounts receivable Inventory.. Other current assets. Total current assets Property, plant, & equipment (net) Other assets. Total Assets Liabilities and Stockholders' Equity Current liabilities. Long-term liabilities. Total liabilities.. EVANS & SONS, INC. Balance Sheet December 31, 2019 and 2018 Stockholders' equity - common. Total Liabilities and Stockholders' Equity.. 2019 9,800 (5,500) 4,300 (2,800) 1,500 (300) $ 1,200 2019 100 900 500 400 2018 1,900 2,600 5,700 $10,200 9,300 (5,200) 4,100 (2,700) (220) (200) $980 $950 1,400 $ (250) 1,150 2018 300 800 650 250 2,000 2,500 5,900 $10,400…
Accounts receivable (gross) Inventory Total current assets Total current liabilities Credit sales Cost of goods sold Current ratio Receivables turnover Inventory turnover 2021 1.000.000 $850,000 $750,000 $650,000 1.020,000 980,000 840,000 2,100,000 2,000,000 1,700,000 1.100.000 1,250,000 6.420.000 6.240,000 5.430.000 4,540,000 4,550,000 3,950,000 (b) Based on (1) current ratio, (2) receivables turnover ratio, and (3) inventory turnover ratio, what conclusion(s) can be drawn about the company's liquidity? 2021 21:1 2020 8.0 times 4.5 times 2020 2019 18:1 8.9 times 5.0 times.
The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…