BMAL 530 WK3 homework

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Use the following information to compute profit margin for each separate company athrough e. (Round your answers to 1 decimal place) @ Answer is complete and correct. Eomp-ny Netincome | NetSales | Profit Margin (%) a s 6883 |s 54200 126% @ b 109,500 482,380 27%@Q < 113381 308,940 36.7% @ [ 9159 | 1761500 52%Q e 93,562 525,740 176% @ Which of the five companies is the most profitable according to the profit margin ratio? Company a Company b Company c @ Company d Company e
cash 5 6,200 Accounts receivable 16,500 office supplies 2,008 Trucks 183,000 Accunulated cepreciation-Trucks s 37,608 Lang 75,000 Accounts payable 10,200 Interest payable 3,000 Long-term notes payable 58,000 K. Wilson, Capital 172,073 K. uilson, Withdrawals 19,800 Trucking revenue 115,500 Depreciation expense-Trucks 2,315 Salaries expense 54,170 Office supplies expense 6,353 Repairs expense 9,533 Totals (&) Calculate the current ratio for Wilson Trucking {b) Assuming Spalding (a competitor) has a current ratio of 1.5, which company is better able to pay its short-term obligations? © Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Show less & Required A | Required B Calculate the current ratio for Wilson Trucking. Current Ratio e - e e Current assets ©| 1 |curentabittes ©|- | curentraio 5 w1 s 1200 w2 Requi
2 225 points awarded Use the information in the following adjusted trial balance for the Wilson Trucking Company. Aecount Title vebit credit Cash $ 6,200 Scored Accounts receivable 16,500 Office suppiies Sro00 Tocks 183,000 Recumilated depreciation-Trucks 5 37,608 Land 75,000 hetounts payable 10,200 Tnterest peyable Sr000 Long-tern nbtes payable 551000 ® K. WiLson, Capital Saen - K. \ilaon, vithranals 19,000 i Trevense 115,500 Scpreciation expense-Trucks 20,315 ST s frigedt Ofice suppiics expense paev Repatns expense oo $ 396,471 5 395,471 o Totals References (a) Calculate the current ratio for Wilson Trucking. (b) Assuming Spalding (a competitor) has a current ratio of 1.5, which company is better able to pay its short-term obligations? Complete this question by entering your answers in the tabs below. Show less & Required A | Required B Calculate the current ratio for Wilson Trucking. Current Ratio | Choose Numerator / Choose Denominator - | CurrentRatio | Current assets ~| 1 [Current liabilties -] = Current ratio s 24700 1 [s 1200l = 187
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- PR 12 December 31 Il Assets Current assets [ Accounts receivable [] s 4750@ cash [ 15.250 @ Merchandise inventory [ 5750 @ Prepaid insurance [] 5,000 Total current assets 30750 Long-term investments [] Notes receivable [] 19,500 @ Tota long-term investments assets 19,500 Plantassets ) Machinery Qs 2600Q |Accumulated depreciation-Machinery [} 19,000 @ 7,000 Tota plant assets 7,000 Total assets 57,250 Liabilties Current liabilities [ Accounts payable [] s 12500 @ Salaries payable [] 1750 @ Total current izbilties 14,250 Long-term labilities [ Notes payable ] 3500 Q Tota long-term liabiies 35,000 Total liabilties 49,250 Equity S Andrea, Capital [] 54,000 @ Total labilties and equity 03,250
Required information @ Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required 1 | Required 2 Prepare the income statement for the year ended December 31. WILSON TRUCKING COMPANY Income Statement For Year Ended December 31 o Revenues Trucking revenue Q s 144,000 @ Expenses Depreciation expense—Trucks @ |5 24,900 @ Salaries expense Q| 6520Q Office supplies expense Q 9,400 @ Interest expense Q| 1340Q Total expenses 112,900 Netincome 5 31100
The K_Wilson, Capital account balance was $184,000 at December 31 of the prior year, and there were no owner investments durir the year. (1) Prepare the income statement for the year ended December 31 (2) Prepare the statement of owner's equity for the year ended December 31 @ Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required 1 | Required 2 Prepare the statement of owner’s equity for the year ended December 31. WILSON TRUCKING COMPANY B Statement of Owner’s Equity B [ For Year Ended December 31 b K. Wilson, Capital, December 31 prior year 5184‘000 Y 'Add: Investments by owner 0 Add: Netincome Q| 311000 215,100 Less: Withdrawals by owner Q| 2140Q K Wison, Capita, December 31 currentyear 193 700
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Camaro 1o Torino cash $ 2,300 $ 210 $ 1,200 Short-term investments o o s00 Current receivables 220 as0 00 Inventory 2,125 1,980 2,950 Prepaid expenses 300 600 900 Total current assets Current lisbilities a. Compute the acid-test ratio for each of the separate cases above. b. Which company is in the best position to meet short-term obligations? @ Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required A | Required B Compute the acid-test ratio for each of the separate cases above. [ Acid-Test Ratio & Choose Numerator: Choose Denominator: = Quick assets @ |/ |Currentliabilities Q|- Camaro [$ 250@|/ s 2180@ |= GTO s 700@|/ s 1300@ = Torino s 210@|/ s 3450 @ = For each ratio, select the building block of financial statement analysis to which it best relates. @ Answer is complete and correct. 1 Price-eamings ratio Market prospects o 2 Return on total assets Profitability o 3 Debt-to-equity ratio Solvency o 4. | Gross margin ratio Profitability Q 5 Times interest eamned Solvency o 6 Inventory turnover Liquidity and efficiency o 7 Profit margin ratio Profitability o 8 Debt ratio Solvency o 9 Current ratio Liquidity and efficiency o
7 Part10f2 25 points Earning: Required information < per share Additional information about the company follows, Conmon Common Annual Annual stock market price, December 31, Current Year Stock market price, December 31, 1 Year Ago cash dividends per share in Current Year cash dividends per share 1 Year Ago s » e 32.00 30.00 0.34 0.17 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders’ equity. 2. Dividend yield. 3a. Price-eamings ratio on December 31 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? © Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 | Required 2 | Required 3A | Required 38 Compute the return on common stockholders' equity for each year. [ Retum On C Equity L Numerator: Denominator: E Return On CDIE::]D.':IY Stockholders Netincome ~ @|- |Preferred divi ’;‘;i"@ge common stockholders’ @) |_ | Retyrn on common stockholders' equity CurrentYear: |5 39630 |- @ |s 179,086 @ |= 21 [% 1 Year Ago: s 6900 @ |s 155301 @ |= 28 |% Required2 >
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Required information sertiors Common stock market price, December 31, Current Year s 32.00 Common stock market price, December 31, 1 Year Ago 30.00 f— Annual cash dividends per share in Current Year 0.34 Annual cash dividends per share 1 Year Ago 0.17 \51 For both the current year and one year ago, compute the following ratios: oints 1. Return on common stockholders' equity. 2. Dividend yield 3a. Price-earnings ratio on December 31 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? © Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 = Required 2 I Required 3A Required 38 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Eamings Ratio Numerator: i Denominator: - | Pricefamings Market price per common @/ | Earmings per share Q- | Piessamings 5:;;?"‘ ® 20@ |5 214@|- P 1 Year Ago: & 3000@| s 221@|= 132 < Required 2 Required 38 > ; °Req d information Net income 5 39,638 5 36,910 arnings per share 2.00 2.27 Part1of2 B e h g 2 Additional information about the company follows, 25 Common stock market price, December 31, Current Year 5 32.00 points Common stock market price, December 31, 1 Year Ago 30.00 Annual cash dividends per share in Current Year 034 Annual cash dividends per share 1 Year Ago 017 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Dividend yield. 3a. Price-eamings ratio on December 31 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? © Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 | Required 2 | Required 3A : Required 38 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? h ich company has higher market expectations for future growth? [ simon Company < Required 3A
8 Simon Company's year-end balance sheets follow, At December 31 Current Year 1 Year Ago 2 Years Ago hssets Part20f2 Cash $ 35,979 $ 42,057 $ 41,245 == Accounts receivable, net 102,194 75,071 55,560 Merchandize inventory 133734 100,172 61,599 Prepaid expenses 11,471 10,925 4725 25 Plant assets, net 326,443 207477 266,371 points Total assets 5 609,821 3 525,708 5 429,500 Lisbilities and Equity Accounts payable s1sa82 $o0,e2 557,82 Long-term notes payable 112]353 117,285 92072 Common stock, $10 par value 163,500 162,500 162,500 Retained carnings 179,086 155,501 117,100 Total lisbilities and equity 5 609,821 3 525,708 3 429,500 The company’s income statements for the current year and one year ago, follow. For Year Ended December 31 Current Year 1 vear Ago Sales $ 792,767 $ 625,503 Cost of goods sold $ 483,588 $ 406,635 Other operating expenses 205,755 158,275 Interest expense 13,477 14,389 Income tax expense 10,306 9,380 Total costs and expenses 753,120 538,653 Net income s 39,638 s 36,910 Earnings per share 5 2.44 s 2.27 For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. (2) Debt-to-equity ratio. (3-8) Times interest eamed. (3-b) Based on times interest eamed, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? (3-8) Times interest eamed. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Q Answes not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute debt and equity ratio for the current year and one year ago. Debt Ratio [ Numerator: I Denominator: [= Debt Ratio | Total liabilities @|/ |Total assets Q- Debt ratio S:;f"‘ S 267235@ |/ |8 609,821 @ |= 38 |% 1YearAgo: S 207907@|1 s 525,708 @ |= 395 |% L Equity Ratio B B | Numerator: 1 Denominator: - Equity Ratio N Total equity Q| Total assets Q= Equity ratio 5:;‘:’“' s 342586 @ |/ |5 609,821 @ |= 562 |% 1YearAgo: [ 317801@[/ s 525,708 @ |= 605 |%
Net income $ 39,638 $ 36,910 Required information Earnings per share $ 2.44 $ 2.27 For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. (2) Debt-to-equity ratio. (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? © Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A | Required 38 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio B Numerator: I Denominator: L i Total liabilities @ |/ |Total equity Q= Debt-to-equity ratio Current Year: (5 267235@| |5 342,586 @ |= 078 [to1 1 Year Ago: s 207907 @ |5 317.801 @ 065 [to1 RN T © Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 | Required 2 i Required 3A Required 38 Compute times interest earned for the current year and one year ago. Times Interest Farned . . E Times Interest Numerator: i Denominator: - e Income before interest and income tax @ |/ |Interest expense Q|- Times interest Current Year: [$ 63421@|/ |5 13477 @ 47 |times 1 Year Ago: s 60683@|/ |5 14,389 @ 42 |times < Required 2 [CE L Y
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Ratio| Formul Liquidity and Efficiency Current assets Current ratio —_— Current liabilities Acid-test ratio _ Cash + Short-term investments + Current receivables Current liabilities Net sales ~ Average accounts receivable, net Cost of goods sold Average inventory Accounts receivable, net Days'sales uncollected — Accounts receivable, net , 365 - Net sales _ Ending inventory _ Cost of goods sold Net sales ‘Average total assets Accounts receivable turnover Inventory turnover 365 Days’ sales in inventory Total asset tunover Solvency Total liabiliies Dest ratio o o Total assets Total equity equity ratio s & Total assets Debt-to-equity ratio = Dot Al = “Total equity Income before inferest expense and income taxes Times interest eamed = Tnterest expense Profitability Net income Profit margin ratio e Net sales Net sales — Cost of goods sold Gross margin ratio Bt = SR Net sales Net income Retum on total assets =S Average total assets " Net income etum on equ e quity Average total equity Net income — Preferred dividends Basic earmings per share = e Weighted-average common shares outstanding Market Prospects Market price per common share " Eamingspershae Annual cash dividends per share " Market price per share Price-eamnings ratio = Dividend yield Measure of Short-term debt-paying ability. Immediate short-term debt-paying ability Eficiency of collection Eficiency of inventory management Liquidity of receivables, Liquidity of inventory Eficiency of assets in producing sales Creditor financing and leverage Owner financing Debt versus equity financing Protection in meeting interest payments Net income in each sales dollar Gross margin in each sales dollar Overall profitability of assets Profitability of owner investment Net income per common share Market value relative to eamings Cash return per common share

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Using your P&L account and Balance sheet above complete the following calculations:   Gross Profit margin Gross Profit Percentage margin Net Profit margin Net Profit Percentage margin Current Ratio Acid Test ROCE   In addition to these calculations, please make analysis and interpretations of the data determined.
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How do you find the profit margin when given this information?  Revenue: $1000 Expenses: $900 Total Assets: $1500 Total Liabilites: $500   Is there a specific formula?
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