Brass Corporation declared and paid $4,700 of cash dividends during the current year ended December 31. Its financial statementsalso reported the following summarized data:Income StatementSales revenueCost of goods soldGross profitOperating expensesInterest expense.Income before income taxes.Income tax expenseNet incomeBalance SheetCashCashAccounts receivable (net)InventoryProperty and equipment (net)Total assetsCurrent liabilitiesNotes payable (long-term)Common stock (par $5)Additional paid-in capitalRetained earnings.Total liabilities and stockholders'equityRequired:Current$ 265,000144,000121,00070,3004,40046,30013,890$ 32,410Required 1$ 8,21036,00057,00062,000$ 163,210Required 2 Required 31-a. Current Year1-a. Previous Year1-b. Current year gross profit percentage is:Previous1. Compute the gross profit percentage for the current and previous years. Are the current-year results better, or worse, than those forthe previous year?$ 233,000134,00099,00064,0004,30030,7002. Compute the net profit margin for the current and previous years. Are the current-year results better, or worse, than those for theprevious year?3. Compute the earnings per share for the current and previous years. Are the current-year results better, or worse, than those for theprevious year? TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. CommonStock equals the par value per share times the number of shares.4. Stockholders' equity totaled $40,200 at the beginning of the previous year. Compute the return on equity (ROE) ratios for thecurrent and previous years. Are the current-year results better, or worse, than those for the previous year?5. Net property and equipment totaled $43,500 at the beginning of the previous year. Compute the fixed asset turnover ratios for thecurrent and previous years. Are the current-year results better, or worse, than those for the previous year?6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion ofthe company's asset growth?7. Compute the times interest earned ratios for the current and previous years. Are the current-year results better, or worse, than thosefor the previous year?4,70026,000$ 16,50062,000$ 30,90062,00040,20040,2008,4006,7008,40036,110$ 163,210 $ 148,2008. After Brass released its current year's financial statements, the company's stock was trading at $47. After the release of its previousyear's financial statements, the company's stock price was $35 per share. Compute the P/E ratios for both years. Does it appear thatinvestors have become more (or less) optimistic about Brass's future success?$ 9,70031,50052,00055,000$ 148,200Complete this question by entering your answers in the tabs below.Required 4%%Required 5 Required 6Required 71-a. Compute the gross profit percentage for the current and previous years. (Round percentage values to 1 decimal place.)1-b. Are the current-year results better, or worse, than those for the previous year?Required 8

The question is based on the concept of Financial Accounting. As per the Bartleyby guidelines we are…

Brass Corporation declared and paid $4,700 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Interest expense Income before income taxes Income tax expense Net income Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities Notes payable (long-term) Current $ 265,000 144,000 121,000 70,300 4,400 46,300 13,890 $ 32,410 $ 8,210 36,000 57,000 62,000 $ 163,210 $ 16,500 62,000 Previous $ 233,000 134,000 99,000 64,000 4,300 30,700 4,700 $ 26,000 $ 9,700 31,500 52,000 55,000 $ 148,200 $ 30,900 62,000

Brass Corporation declared and paid $4,700 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Interest expense Income before income taxes Income tax expense Net income Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities Notes payable (long-term) Current $ 265,000 144,000 121,000 70,300 4,400 46,300 13,890 $ 32,410 $ 8,210 36,000 57,000 62,000 $ 163,210 $ 16,500 62,000 Previous $ 233,000 134,000 99,000 64,000 4,300 30,700 4,700 $ 26,000 $ 9,700 31,500 52,000 55,000 $ 148,200 $ 30,900 62,000

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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