Cadux Candy Company's income statement for the year ended December 31, 2024, reported interest expense of $3 million andincome tax expense of $20 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory.Property, plant, and equipment is the company's only noncurrent asset. Financial ratios for 2024 are listed below. Profitability andturnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages.Debt to equity ratioCurrent ratio0.82.0Acid-test ratio1.0Times interest earned ratio16 timesReturn on assets20%Return on equity36%Profit margin on sales10%Gross profit margin(gross profit divided by net sales)20%Inventory turnover8 timesReceivables turnover21 timesRequired:Prepare a December 31, 2024, balance sheet for the Cadux Candy Company.Note: Enter your answers in millions. Round your intermediate calculations and final answer to the nearest whole million.CADUX CANDY COMPANYBalance SheetAt December 31, 2024($ in millions)AssetsCurrent assets:CashAccounts receivable (net)InventoryTotal current assets0Property, plant, and equipment (net)Total assets$0Liabilities and Shareholders' EquityCurrent liabilitiesLong-term liabilitiesShareholders' equityTotal liabilities and shareholders' equity$0wwwPrev1 of 1Next

Balance sheet:The balance sheet is a statement showing an organization's assets, liabilities, and…

Acid-test ratio Debt to equity ratio Current ratio Times interest earned ratio Return on assets Return on equity Profit margin on sales Gross profit margin Inventory turnover Receivables turnover (gross profit divided by net sales) 8 times 21 times 0.8 2.0 1.0 16 times 20% 36% 10% 20%

Acid-test ratio Debt to equity ratio Current ratio Times interest earned ratio Return on assets Return on equity Profit margin on sales Gross profit margin Inventory turnover Receivables turnover (gross profit divided by net sales) 8 times 21 times 0.8 2.0 1.0 16 times 20% 36% 10% 20%

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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Selected XYZ financials (in dollars) 25,240,000 24,324,000 18,785,000 2,975,000 12,600,000 10,550,000 2,875,000 3,445,000 Gross income Total Sales Total Credit Sales, Net Income Cost of Goods Sold Total Assets Average Inventory Average Accounts receivable What is the inventory turover ratio for Firm XYZ. (round to 3 decimals)
DuPont Analysis If Epic, Inc. has an ROE = 29%, equity multiplier = 3.6, a profit margin of 12.4%, what is the total asset turnover ratio? (Round your answer to 4 decimal places.)
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $219,400; common stock, $86,000; and retained earnings, $31,757.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory. Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $ 14,000 8,200 30,000 38,150 2,600 149,300 $ 242, 250 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 456,600 297,750 158,850 99,000 4,600 55,250 22,257 $32,993 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 18,500 3,600 4,000…
The Saw Mill has a return on assets of 6.1 percent, a total asset turnover rate of 1.8, and a debt-equity ratio of 0.6. What is the return on equity? Group of answer choices 9.76 percent 15.86 percent 19.03 percent 4.26 percent 12.28 percent
Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements. For Years Ended December 31 2021 Sales: Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets 2020 $436,580 $ 334,456 262,821 173,759 61,994 39,292 Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 212,045 122,411 46, 155 101,286 72,473 13,480 $ 58,993 $ 37,225 29,432 75,587 46,824 9,599 2021 $ 54,789 0 100, 200 $154,989 $ 22,628 72,000 9,000 51,361 2019 $ 232,100 148,544 83,556 30,637 19,264 49,901 33,655 6,832 $ 26,823 2020 $36,670 900 91,178…
what is the profit margin ratio
Pecunious Products, Inc.'s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover Inventory turnover Dividend yield Dividend payout ratio 9.4 10.6 12.5 6.5 7.2 8.0 7.1% 6.5% 5.8% 40% 50% 60% Return on total assets 12.5% 11.0% 9.5% Return on equity Dividends paid per share 14.0% 10.0% 7.8% P1.50 P1.50 P1.50 Required: Based on the ratios presented above, discuss your analysis of Pecunious' financial results with respect to its: a. Liquidity; b. Asset management; c. Profitability; and d. Market performance
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DuPONT ANALYSIS Henderson’s Hardware has an ROA of 11%, a 6% profit margin, and anROE of 23%. What is its total assets turnover? What is its equity multiplier?
Ratios Calculated Year 1 Year 2 3.64 +Q+ Price-to-cash-flow 5.20 Inventory turnover 10.40 Debt-to-equity 0.70 8.32 0.56 Year 3 2.91 6.66 0.45 Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. Cold Goose Metal Works Inc.'s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.70 to 0.45. A decline in the inventory turnover ratio can be explained by the new Inventory management system that the company recently adopted, which led to more efficient inventory management. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A plausible reason why Cold Goose Metal Works Inc.'s price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.
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