Axis Chemical Co. reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 6%. Axis Chemical Co. expects to maintain its current profit margin of 24% and dividend payout ratio of 15%. The following information was taken from Axis Chemical Co.'s balance sheet: Total assets $500,000 Accounts payable $65,000 Notes payable $40,000 Accrued liabilities $70,000 Based on the AFN equation, the firm's AFN for the current a) -133,793 b) -147,172 c) -153,862 d) -167,241 year is

Axis Chemical Co. reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 6%. Axis Chemical Co. expects to maintain its current profit margin of 24% and dividend payout ratio of 15%. The following information was taken from Axis Chemical Co.'s balance sheet: Total assets $500,000 Accounts payable $65,000 Notes payable $40,000 Accrued liabilities $70,000 Based on the AFN equation, the firm's AFN for the current a) -133,793 b) -147,172 c) -153,862 d) -167,241 year is

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.
Footfall Manufacturing Ltd. reports the following financial information at the end of the current year: Net sales $100.000 Debtors’ turnover ratio (based on sales) 2 Inventory turnover ratio 1.25 Fixed assets turnover ratio 0.8 Debt to assets ratio 0.6 Net profit margin 5% Gross profit margin 25% Return on investment 2% Use the given information to fill out the templates for the income statement and balance sheet given below: Income Statement of Footfall Manufacturing Ltd. for the year ending December 31, 20XX (in $) Sales 100,000 Cost of goods sold Gross profit Other expenses Earnings before tax Tax @ 50% Earnings after tax Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in $) Liabilities Amount Assets Amount Equity Net fixed assets Long term debt 50,000 Inventory Short term debt Debtors Cash…
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For the year ended December 31, 2022, Settles Incorporated earned an ROI of 8.8 %. Sales for the year were $9 million, and average asset turnover was 2.2. Average stockholders' equity was $2.9 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income % b. Return on equity %
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,200,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period $ 25,000 351,000 251,000 423,000 $ 1,050,000 Accounts payable Accrued taxes Liabilities and Equity times times % times days Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity $ 247,000 97,000 136,000 Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. 100,000 150,000 320,000 $ 1,050,000
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,190,000, with 75 percent of sales sold on credit. REVOLUTION CLOTHIERS Balance Sheet 20X1 Assets Cash Accounts receivable Inventory Plant and equipment Total assets $ 24,000 283,000 266,000 450,000 a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period $ 1,023,000 Accounts payable Accrued taxes Liabilities and Equity times times % times days Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. $ 279,000 107,000 130,000 100,000 150,000 257,000 $ 1,023,000
Suppose that you are given the following data for Niles Company : Note: The data and calculations are based on a 365-day year. Cash and equivalents Fixed assets Sales Net income Current liabilities Current ratio DSO ROE $225,000 $650,000 $2,500,000 $112,500 $240,000 2.5 18.25 12.00%
The balance sheet of ATLF, Inc. reports total assets of $1,950,000 and $2,050,000 at the beginning and end of the year, respectively. Net income and sales for the year are $150,000 and $1,000,000, respectively. What is ATLF's profit margin? Select one: a. 10% Ob. 8% O c. 7.5% O d. 15% e. 12%
APX Co achieved $16 million revenue in the year that has just ended and expects revenue growth of 8.4% in the next year. Cost of sales in the year that has just ended was $10.88 million and other expenses were $1.44 million. The financial statements of APX for the year that has just ended contain the following statement of financial position: $m $m Non-current assets 22.0 Current assets 2.4 Inventory 2.2 Trade Receivables 4.6 Total Assets 26.6 $m $m Equity Finance 5.0 Ordinary Shares 7.5 Reserves 12.5 Long-term bank loan 10.0 22.5 Current Liabilities 1.9 Trade Payables 2.2 Overdraft 4.1 Total equity and liabilities 26.6 The long-term bank loan has a fixed annual interest rate of 8% per year. APX pays taxation at an annual rate of 30% per year.…
For the year ended December 31, 2019, Settles Inc. earned an ROI of 9.6%. Sales for the year were $16 million, and average asset turnover was 2.4. Average stockholders' equity was $3.2 million.Required: Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.)
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,490,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period $ 38,000 Accounts payable Accrued taxes 292,000 248,000 500,000 $ 1,078,000 Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity Liabilities and Equity times times % Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. times days $ 262,000 148,000 178,000 100,000 150,000 240,000 $ 1,078,000