3. A common-size income statement for Palomer would report (amounts rounded)a. Net income of 19%b. Sales of 100%c. Cost of sales at 34%d. All of the above4. A common-size balance sheet for Palomer would report (amounts rounded)a. Current liabilities as 28% of total assetsb. Owner's capital is 53% of total liabilities and equityc. Receivables is 7% of total liabilities and equityd. All of the above5. Trend analysis will show which of the following?a. 15% increase in Current Liabilitiesb. 33% increase in Owner's Capitalc. 19% increase in Long Term Liabilitiesd. All of the above The financial statements of PalomerTrading Ltd. are given below:2019Cash and Cash Equivalents P 12,2502018P 10,470Receivables9,0658,055Inventory6,6205,300Prepaid Expenses8,54510,600Total Current Assets36,48034,425Other Assets92,500P 128,980 P 113,11078,685Total AssetsTotal current liabilities36,15042,335Long-term liabilities23,99018,960Psalm Palomer, Capital68,84051,815Total Liabilities and Equity P 128,980 P 113,1102019P 104,705Net SalesCost of Goods Sold32,275Gross Profit69,430Selling Expenses35,325Administrative Expenses12,815Operating Income21,290Interest Expense1,050Net IncomeP 20,240Required: Prepare a horizontal and vertical analysis for Palomer Trading financialstatements. Choose the correct answer in each of the following.1. Horizontal analysis of 2019 Palomer's balance sheet would reporta. Cash as 9.50% of total assetsb. 19% decrease in Prepaid Expensesc. 19% increase in Cashd. All of the above2. Vertical analysis of 2019 Palomer's balance sheet would reporta. Cash as 9.50% of total assetsb. 17% increase in Prepaid Expensesc. 19% increase in Cashd. All of the above

The analysis of financial statements helps to measure the result of two years with comparison of…

Answered: 3. A common-size income statement for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following condensed information is reported by Sporting Collectibles. Income Statement Information Sales revenue Cost of goods sold Net income Balance Sheet Information Current assets Long-term assets Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity Profitability Ratios a. Gross profit ratio b. Return on assets c. Profit margin d. Asset turnover e. Return on equity % % % The amount of dividends paid Required: 1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.) times % 2021 $10,440,000 6,827,760 360,000 2. Determine the amount of dividends paid to shareholders in 2021. 2020 $8,400,000 5,900,000 248,000 $ 1,600,000 2,200,000 $ 3,800,000 $ 1,200,000 1,500,000 800,000 $ 900,000 1,500,000 800,000 300,000 200,000 $ 3,800,000 $3,400,000 $1,500,000 1,900,000 $3,400,000
Selected data from Decco Company are presented below: Total assets $1,600,000 Average assets 2,000,000 Net income 380,000 Net sales 1,500,000 Average common stockholders' equity 1,000,000 Instructions Calculate the following profitability ratios from the above information. 1. Profit margin. 2. Asset turnover. 3. Return on assets.
5 )
Compute the following ratio analysis: Return on Equity Return on Assets Gross Profit Margin Write your interpretation after the computation.
Problem no 19, (Ref. 3) The following are the financial statements of Bagmati Bitumin Limited. Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Sales Cost of goods sold Depreciation Bagmati Bitumin Limited Balance Sheet as of December 31, 2016 and 2017 2016 Rs 650 2,382 4,408 Rs 7,440 2017 Liabilities and Equity Rs 710 Accounts payable 2,106 Notes payable 4,982 Other Rs 7,798 Rs 13,992 Rs 18,584 Total debt Total current liabilities Long-term debt Owners' equity (1,250 shares outstanding) Rs 21,432 Rs 26,382 Total liabilities and equity Earnings before interest and taxes Interest paid Taxable income Taxes @ 35% Net Income Dividends Addition to retained earnings Market price for a share of stock 2016 Rs 987 640 90 Rs 1,717 4,318 Rs 6,035 Rs 15,397 Bagmati Bitumin Limited Income Statement for the Year Ended December 31, 2017 2017 Rs 1215 718 230 Rs 2,163 4,190 Rs 6,353 Rs 20,029 Rs 21,432 Rs 26,382 Rs 28,000 11,600 2,140 Rs 14,260 980 Rs 13,280…
4-10)Assume the following relationships for Brauer Corp.:Sales/Total Assets 1.5XReturn on Assets (ROA) 3.0%Return on Equity (ROE) 5.0%Calculate Brauer’s profit margin and debt-to-asset ratio assuming the firm uses only debt and common equity.
Edison Company reported the following for the current year: $ 84,000 59,000 21,080 63,000 77,080 Net sales Cost of goods sold Net income Beginning balance of total assets Ending balance of total assets Compute (a) profit margin and (b) return on total assets. Complete this question by entering your answers in the tabs below. Profit Margin Ratio Compute the return on total assets. Return On Total Assets Numerator: 7 7 7 Return On Total Assets Denominator: = Return On Total Assets Return on total assets II =
stark company most recent balance sheet reported total assets of 2.02 million and total liabilitie of 0.74 million and total equity of 1.28 million its debit equity to ratio is A. 0.37 B. 0.63 C. 1.73 D. 0.58 E. 1.00
The following financial statements apply to Finch Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets. Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $219, 100 124,400 101, 100 19,700 17,700 10,000 9,000 1,700 1,700 20, 100 16,900 175,900 146,400 $ 43,200 $36,400 $ 4,800 $ 7,200 2,800 2,800 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 $38,500 15,800 Year 1 $182, 800 54,300 64,300 118,600 114,900 44, 100 159,000 $277,600 31, 100 94, 100 2,900 138, 100 106,400 0…
Amir Company’s net income and net sales are $18,000 and $1,100,000, respectively,and average total assets are $100,000. What is Amir’s return on assets?a. 20.0%b. 18.0%c. 3.7%d. 7.0%
Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.7 Return on assets (ROA) 4% Return on equity (ROE) 6% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %
Compute Return on equity ratio if Net Income:2.026 ; Sales:17.193 ;Total Assets: 31.483 ; Total Equity: 12.804. a) 17.82%b) 11.78%c) 15.82%d) 6.44%

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