Less: Cost of Goods Sold Less: Administrative Expenses Less: Depreciation Earnings Before Interest and Taxes Less: Interest Expense Taxable Income Less: Texas Net Income RBL Paving Company Income Statement for Year Ending December 31, 2021 Dividends Addition to Retained Earnings a. Return on equity b. Total assets turnover C. Return on assets d. Current ratio e. 3,400,000 2,700,000 700,000 682,000 (682,000) 120,000 (802,000) (280,000) (522,000) Required: Evaluate the performance of RBL Paving Company using the below ratios. Define each ratio, perform the calculation, and provide an explanation of the result. Receivables turnover 0 (522,000) Analysis of Financial Statements There was a bit of concern about one of RBL's newer entities - RBL Paving Company. Management wants you to review the two financial statements below and give your analysis of the company's performance. Current Assets: Cash Assets Accounts Receivable Inventory Total Current Assets Fixed Assets: Property, Plant & Equipment Less: Accumulated Depreciation Net Fixed Assets Total Assets RBL Paving Company Liabilities 200,000 300,000 800,000 1,300,000 2,200,000 600,000 1,600,000 2,900,000 Current Liabilities: Accounts Payable Notes Payable Total Current Liabilities Owner's Equity: Common Stock ($1 Par) Capital Surplus Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity 700,000 600,000 1,300,000 600,000 100,000 100,000 800,000 2,900,000
Less: Cost of Goods Sold Less: Administrative Expenses Less: Depreciation Earnings Before Interest and Taxes Less: Interest Expense Taxable Income Less: Texas Net Income RBL Paving Company Income Statement for Year Ending December 31, 2021 Dividends Addition to Retained Earnings a. Return on equity b. Total assets turnover C. Return on assets d. Current ratio e. 3,400,000 2,700,000 700,000 682,000 (682,000) 120,000 (802,000) (280,000) (522,000) Required: Evaluate the performance of RBL Paving Company using the below ratios. Define each ratio, perform the calculation, and provide an explanation of the result. Receivables turnover 0 (522,000) Analysis of Financial Statements There was a bit of concern about one of RBL's newer entities - RBL Paving Company. Management wants you to review the two financial statements below and give your analysis of the company's performance. Current Assets: Cash Assets Accounts Receivable Inventory Total Current Assets Fixed Assets: Property, Plant & Equipment Less: Accumulated Depreciation Net Fixed Assets Total Assets RBL Paving Company Liabilities 200,000 300,000 800,000 1,300,000 2,200,000 600,000 1,600,000 2,900,000 Current Liabilities: Accounts Payable Notes Payable Total Current Liabilities Owner's Equity: Common Stock ($1 Par) Capital Surplus Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity 700,000 600,000 1,300,000 600,000 100,000 100,000 800,000 2,900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please see atttached Question starting with image one and concludes with image two.
Thank you.
Transcribed Image Text:Less: Cost of Goods Sold
Less: Administrative Expenses
Less: Depreciation
Earnings Before Interest and Taxes
Less: Interest Expense
Taxable Income
Less: Texas
Net Income
RBL Paving Company
Income Statement for Year Ending December 31, 2021
Dividends
Addition to Retained Earnings
a. Return on equity
b. Total assets turnover
C. Return on assets
d. Current ratio
e.
3,400,000
2,700,000
700,000
682,000
(682,000)
120,000
(802,000)
(280,000)
(522,000)
Required: Evaluate the performance of RBL Paving Company using the below ratios. Define each ratio,
perform the calculation, and provide an explanation of the result.
Receivables turnover
0
(522,000)
Transcribed Image Text:Analysis of Financial Statements
There was a bit of concern about one of RBL's newer entities - RBL Paving Company. Management
wants you to review the two financial statements below and give your analysis of the company's
performance.
Current Assets:
Cash
Assets
Accounts Receivable
Inventory
Total Current Assets
Fixed Assets:
Property, Plant & Equipment
Less: Accumulated Depreciation
Net Fixed Assets
Total Assets
RBL Paving Company
Liabilities
200,000
300,000
800,000
1,300,000
2,200,000
600,000
1,600,000
2,900,000
Current Liabilities:
Accounts Payable
Notes Payable
Total Current Liabilities
Owner's Equity:
Common Stock ($1 Par)
Capital Surplus
Retained Earnings
Total Owners' Equity
Total Liabilities and
Owners' Equity
700,000
600,000
1,300,000
600,000
100,000
100,000
800,000
2,900,000
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Step 1: Defining each ratios along with formula:
VIEWStep 2: Calculation of Return on Equity:
VIEWStep 3: Calculation of Total Assets Turnover Ratio:
VIEWStep 4: Calculation of Return on Assets Ratio:
VIEWStep 5: Calculation of Current Ratio:
VIEWStep 6: Calculation of Receivable Turnover Ratio:
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