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

See similar textbooks

Similar questions

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 )
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. %
26. Given the following financial data for Alpha Company, calculate the ratios listed below the data. (Compute all ratios and percents to 2 decimal points.) Sales (all on credit) Cost of Goods Sold $650,000 422,500 Income before 78,000 Income Taxes Net Income 54,600 Ending Beginning Balances Balances Cash $19,500 $15,000 Accounts Receivable 65,000 59,800 (net) Merchandise 71,500 66,300 Inventory Plant and Equipment (net) 195,000 183,900 Total Assets $351,000 $325,000 Current $74,100 $100,200 Liabilities Long-Term Notes Payable 97,500 100,000 Stockholders' 179,400 124,800 Equity Total Liabilities and Stockholders' $351,000 $325,000 Equity
ssume the following relationships for the Caulder Corp.: Sales/Total assets 1.2\times Return on assets (ROA ) 5.0% Return on equity (ROE) 15.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
Company has return on assets 12.4% and debt-equity ratio is 0.25. What is ROE? Select one: a.35.43% b.9.18% c.9.3% d.15.5%

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS