2-a. By what amount did working capital change? 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) 2-c. What was the amount of cash collections from customers in year 2?
2-a. By what amount did working capital change? 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) 2-c. What was the amount of cash collections from customers in year 2?
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 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...
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Question
2-a. By what amount did
2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.)
2-c. What was the amount of cash collections from customers in year 2?
2-d. What was the percentage change for the markup realized on sales? (Round intermediate calculations and final answer to 1 decimal place.)
![The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data:
Statement of Earnings
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
Net earnings
Statement of Financial Position
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Current liabilities (no interest)
Non-current liabilities (10% interest)
Common shares (6,000 shares)
Retained earningst
Year 2
$336,240*
285,560
50, 680
33,460
17, 220
5,510
$ 11,710
4,380
18, 280
52,460
34,270
$109,390
$ 12,550
39,830
30,000
27,010
$109,390
Year 1
$285,000
241,000
44,000
30, 200
13,800
4,200
$ 9,600
$ 8,800
22,000
46,000
29,000
$105,800
$ 15,200
38,800
30,000
21,800
$105,800
*One-third was credit sales.
+During Year 2, cash dividends amounting to $6,500 were declared and paid.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F019f4a82-820c-47b3-bddc-1cc34b6d09f8%2Fbadf2ff7-339d-4a2b-9f75-d43239c409f7%2Faq53jle_processed.png&w=3840&q=75)
Transcribed Image Text:The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data:
Statement of Earnings
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
Net earnings
Statement of Financial Position
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Current liabilities (no interest)
Non-current liabilities (10% interest)
Common shares (6,000 shares)
Retained earningst
Year 2
$336,240*
285,560
50, 680
33,460
17, 220
5,510
$ 11,710
4,380
18, 280
52,460
34,270
$109,390
$ 12,550
39,830
30,000
27,010
$109,390
Year 1
$285,000
241,000
44,000
30, 200
13,800
4,200
$ 9,600
$ 8,800
22,000
46,000
29,000
$105,800
$ 15,200
38,800
30,000
21,800
$105,800
*One-third was credit sales.
+During Year 2, cash dividends amounting to $6,500 were declared and paid.
![Required:
1. Complete the following columns for each item in the preceding comparative financial statements (Negative answers should be
indicated by a minus sign. Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).):
Statement of earnings:
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
Net earnings
Statement of financial position:
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Current liabilities
Long-term debt
Common shares
Retained earnings
$
$
$
$
Increase (Decrease)
Year 2 over Year 1
Amount
51,240
44,560
6,680
3,260
3,420
1,310
2,110
(4,420)
(3,720)
6,460
5,270
3,590
(2,650)
1,030
0
5,210
3,590
Percentage
17.98
18.49
15.18
10.79
24.78
31.19
21.98
(50.23)
(16.91)
14.04
18.17
3.39
(17.43)
2.65
0.00
23.90
3.39](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F019f4a82-820c-47b3-bddc-1cc34b6d09f8%2Fbadf2ff7-339d-4a2b-9f75-d43239c409f7%2F3ts32n_processed.png&w=3840&q=75)
Transcribed Image Text:Required:
1. Complete the following columns for each item in the preceding comparative financial statements (Negative answers should be
indicated by a minus sign. Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).):
Statement of earnings:
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
Net earnings
Statement of financial position:
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Current liabilities
Long-term debt
Common shares
Retained earnings
$
$
$
$
Increase (Decrease)
Year 2 over Year 1
Amount
51,240
44,560
6,680
3,260
3,420
1,310
2,110
(4,420)
(3,720)
6,460
5,270
3,590
(2,650)
1,030
0
5,210
3,590
Percentage
17.98
18.49
15.18
10.79
24.78
31.19
21.98
(50.23)
(16.91)
14.04
18.17
3.39
(17.43)
2.65
0.00
23.90
3.39
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