Balance Sheet as of December 31, 2018 2018 $ 125,000 $ 375,000 550,000 $ 1,050,000 2,750,000 (1,200,000) $1,550,000 $2,600,000 Assets Cash Accounts receivable Inventory Total current assets Grossfixed assets Accumulated depreciation Net fixed assets TOTAL ASSETS Debt (Liabilities) and Equity $ 150,000 150,000 $ 300,000 Accounts payable Short-term notes Total current liabilities Long-tem debt Total debt 600,000 $ 900,000 $ 900,000 800,000 $1,700,000 $ 2,600,000 Common stock Retained earnings Total owners' equity TOTAL DEBT AND EQUITY Income Statement for the Year ending December 31, 2018 $1,450,000 (850,000) $ 600,000 (240,000) $ 360,000 (64,000) $ 296,000 (118,000) $ 178.000 Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Profits beforetaxes Тахes Net profits Industry Norms Current ratio 3.25 Retum on assets 15.0% Operating profit margin 20.0% Total asset turnover 0.75 Debt ratio 0.20 Retum on equity 9.0%
Balance Sheet as of December 31, 2018 2018 $ 125,000 $ 375,000 550,000 $ 1,050,000 2,750,000 (1,200,000) $1,550,000 $2,600,000 Assets Cash Accounts receivable Inventory Total current assets Grossfixed assets Accumulated depreciation Net fixed assets TOTAL ASSETS Debt (Liabilities) and Equity $ 150,000 150,000 $ 300,000 Accounts payable Short-term notes Total current liabilities Long-tem debt Total debt 600,000 $ 900,000 $ 900,000 800,000 $1,700,000 $ 2,600,000 Common stock Retained earnings Total owners' equity TOTAL DEBT AND EQUITY Income Statement for the Year ending December 31, 2018 $1,450,000 (850,000) $ 600,000 (240,000) $ 360,000 (64,000) $ 296,000 (118,000) $ 178.000 Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Profits beforetaxes Тахes Net profits Industry Norms Current ratio 3.25 Retum on assets 15.0% Operating profit margin 20.0% Total asset turnover 0.75 Debt ratio 0.20 Retum on equity 9.0%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
Related questions
Question
Is the company doing a good job of earning a return on its assets? Explain.
![Balance Sheet as of December 31, 2018
2018
$ 125,000
$ 375,000
550,000
$ 1,050,000
2,750,000
(1,200,000)
$1,550,000
$2,600,000
Assets
Cash
Accounts receivable
Inventory
Total current assets
Grossfixed assets
Accumulated depreciation
Net fixed assets
TOTAL ASSETS
Debt (Liabilities) and Equity
$ 150,000
150,000
$ 300,000
Accounts payable
Short-term notes
Total current liabilities
Long-tem debt
Total debt
600,000
$ 900,000
$ 900,000
800,000
$1,700,000
$ 2,600,000
Common stock
Retained earnings
Total owners' equity
TOTAL DEBT AND EQUITY
Income Statement for the Year ending December 31, 2018
$1,450,000
(850,000)
$ 600,000
(240,000)
$ 360,000
(64,000)
$ 296,000
(118,000)
$ 178.000
Sales
Cost of goods sold
Gross profits
Operating expenses
Operating profits
Interest expense
Profits beforetaxes
Тахes
Net profits
Industry Norms
Current ratio
3.25
Retum on assets
15.0%
Operating profit margin
20.0%
Total asset turnover
0.75
Debt ratio
0.20
Retum on equity
9.0%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe58662ff-957c-484b-8c77-a60fa660e3d4%2F5d498e0d-373d-476b-9f6b-672d75385ad8%2Fdjihb73.png&w=3840&q=75)
Transcribed Image Text:Balance Sheet as of December 31, 2018
2018
$ 125,000
$ 375,000
550,000
$ 1,050,000
2,750,000
(1,200,000)
$1,550,000
$2,600,000
Assets
Cash
Accounts receivable
Inventory
Total current assets
Grossfixed assets
Accumulated depreciation
Net fixed assets
TOTAL ASSETS
Debt (Liabilities) and Equity
$ 150,000
150,000
$ 300,000
Accounts payable
Short-term notes
Total current liabilities
Long-tem debt
Total debt
600,000
$ 900,000
$ 900,000
800,000
$1,700,000
$ 2,600,000
Common stock
Retained earnings
Total owners' equity
TOTAL DEBT AND EQUITY
Income Statement for the Year ending December 31, 2018
$1,450,000
(850,000)
$ 600,000
(240,000)
$ 360,000
(64,000)
$ 296,000
(118,000)
$ 178.000
Sales
Cost of goods sold
Gross profits
Operating expenses
Operating profits
Interest expense
Profits beforetaxes
Тахes
Net profits
Industry Norms
Current ratio
3.25
Retum on assets
15.0%
Operating profit margin
20.0%
Total asset turnover
0.75
Debt ratio
0.20
Retum on equity
9.0%
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