Assume a company's Income Statement for Year 12 is as follows:Income Statement DataNet Revenues from Footwear SalesCost of Pairs SoldWarehouse ExpensesMarketing ExpensesAdministrative ExpensesOperating Profit (Loss)Interest Income (Expense)Pre-tax Profit (Loss)Income TaxesNet Profit (Loss)Year 12(in 000s)5.50.4.50.3.15.2.2053.0.$530,000340,00040,00080,00015,00055,000(10,000)45,00013,500$31,500Based on the above income statement data and the formula for calculating the interestcoverage ratio described in the Help section for p. 5 of the Footwear Industry Report, thecompany's interest coverage ratio is

The interest coverage ratio measures how well a company can pay the interest due on outstanding…

Answered: Assume a company's Income Statement for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Below are the Income Statement of ABC Company for two consecutive years. ABC Company Net Sales Cost of Goods Soldxs3 Year 1 P 5,000,000 880,000 Year 2 P 6,500,000 950,000
Consider the following given information below: Total Income P1,321,000 Total Distribution Cost 268,900 Total Administrative Cost 250,200 Other Expenses 8,000 Interest Expense 9,000 Total Expenses 536,100 Income Tax Expense 235,500 What is the amount of income before tax to be reflected in the income statement?
Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc. Income statement For the year ended December 31, 2021 net sales $240 Cost of goods sold $150 gross profit $90 Operating expenses $65 Net income $25 Using vertical analysis, what percentage is assigned to operating expenses? a. 27,1% b. 43.3% c. 72.2% d. 260.0%
Refer to the following selected financial information from Gomez Electronics. Compute the company's profit margin for Year 2. Net sales Cost of goods sold Interest expense Net income before tax Net income after tax Total assets Total liabilities Total equity Year 2 Year 1 $485,000 $427,550 277,600 251,420 11,000 12,000 68,550 53,980 47,350 41, 200 319,700 295,800 174,900 144, 800 168, 600 127, 200
Assume a company's Income Statement for Year 12 is as follows: Year 12 (in 000s) Income Statement Data Net Revenues from Footwear Sales Cost of Pairs Sold $ 560,000 340,000 45,000 Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (Expense) Pre-tax Profit (Loss) 85,000 15,000 75,000 (25,000) 50,000 15,000 $ 35,000 Income Taxes Net Profit (Loss) Based on the above income statement data and the formula for calculating the interest coverage ratio presented on the Help section for p. 5 of the Footwear Industry Řeport, the company's interest coverage ratio is Copyright O by Glo-Bus Software, Inc. Copying, distributing, ar 3rd party website posting isexpressly prohibited and constitutes copyright vialation. O 1.40. O 2.00. O 22.4. 4.00. O 3.00.
Income statements for Fanning Company for Year 3 and Year 4 follow. FANNING COMPANY Income Statements. Sales Cost of goods sold. Selling expenses Administrative expenses. Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $200,200 143,800 20,500 12,500 3,500 $180, 300 19,900 5,900 $14,000 Year 3 $180, 200 121,800 18,500 14,500 5,500 $160,300 19,900 3,100 $16,800 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Sales. Costs and expenses Cost of goods sold. Operating expenses. Interest expense... Income before income taxes. Income tax expense.. Net income.. Statement of Income For the Year Ended December 31, 2020 $1,140,000 $1,700,000 364,800 37,800 1,542,600 157,400 55,090 $ 102,310 GEORGE INDUSTRIES Statement of Financial Position December 31, 2020 Total assets. Total liabilities.. Total shareholders' equity... 2020 2019 $842,110 $717,800 329,600 279,600 512,510 438,200 Calculate the Net profit margin ratio (use up to 2 decimal places and do not use a % sign)
1. Utilize the comparative income statement for the amounts needed. Al-Can Products, Inc. Comparative Income Statement For Years Ended December 31, 20xx and 20xx Net Sales Cost of Merchandise Sold Gross Profit on Operations Total Operating Expenses Net Income Before Federal Income Tax Federal Income Tax Expense Net Income After Federal Income Tax Total Stockholders' Equity Net Sales Net Income After Tax Stockholders' Equity CURRENT YEAR Amount $426,500.00 $268,700.00 $157,800.00 $110,800.00 $47,000.00 $7,100.00 $39,900.00 $195,000.00 2. Calculate the amount and percent of increase or decrease from the prior year to the current in the table below. State whether the trend is favorable or unfavorable. Increase (Decrease) PRIOR YEAR Percent $346,800.00 $245,200.00 $101,600.00 $85,200.00 $16,400.00 $2,500.00 $13,900.00 $186,000.00 Trend
Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes. Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Sin Comparative Income Statements For Years Ended December 31 2021 $ 420,027 252,856 167,171 59,644 37,802 97,446 69,725 12,969 $ 56,756 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity Assets Current assets Long-term investments Plant assets, net. Total assets Liabilities and Equity Current liabaties Common stock Other paid-in capital Retained earnings Total liabilities and equity 2020 $ 321,775 202,718 KORBIN COMPANY Comparative Balance Sheets December 31 2021 119,057 44,405 28,316 72,721 46,336 9,499 $ 36,837 $ 55,286 0 102,674 $ 157,960 2020 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as answers to 2 decimal places.) 111.77 % 0.00 $ 37,003 700…
Crane Ltd. reported the following for the fiscal year 2021: Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Gain on sale of land Profit before income tax Income tax expense Profit Additional information: 1. 2. CRANE LTD. Income Statement Year Ended September 30, 2021 3. 4. 5. 6. $ 109,000 34,000 (44,000) $583,000 338,000 245,000 99,000 146,000 36,500 $109,500 Accounts receivable decreased by $16,300 during the year. Inventory increased by $7,800 during the year. Prepaid expenses decreased by $5,800 during the year. Accounts payable to suppliers increased by $11,300 during the year. Accrued expenses payable increased by $5,300 during the year. Income tax payable decreased by $7,100 during the year.
Compute for Net Profit Margin for Year 1: The Derkins Corporation had the following information available: Year 3 Year 2 Year 1 Income Statement Revenue Cost of goods sold Selling & admin. expenses Interest expense Net Income 30,848 23,122 6,082 504 1,140 27,433 20,938 5,053 458 984 25,512 19,875 4,672 350 615 Balance Sheet Assets Cash Accounts receivable Inventory Property and equip. (net) Total Assets 681 506 3,200 3,281 7,668 354 587 2,627 2,810 6,378 589 412 2,245 2,514 5,760 Liabilities Accounts payable Unredeemed gift cards Long-term liabilities 373 469 358 410 280 385 2,643 3,234 2,824 Stockholders' Equity Common stock Retained earnings Total Liabilities and Equity 985 985 985 2,607 7,668 1,801 6,378 1,467 5,760 Note: Use two Decimal Points and use Percent (%) if Necessary
Find the Net Sales

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