Case 2Company ABCAssets turnoverGross SalesSales DiscountsGross ProfitOperating ProfitPermanent CapitalFinancial Leverage2%1.050.0003500018%9%345.000,0035%Acid Test ratio1,5%Fixed assets turnover4Liquid assets10%Tangible fixed assets/ Shareholders Equity30%Requirement:Prepare the Balance Sheet and Income Statement of Company ABC

Balance sheet refers to the financial statement which shows the financial position of the company…

Answered: Case 2 Company ABC Assets turnover…

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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Calculate any 5 leverage ratio
Consolidate d Balance Sheet OF PZ 2019 2018 $0 $0 Turnover 60,000 50,00 Cost of Sales 42,000 34,00 Gross Profit 18,000 16,000 Operating Expenses 15,500 13,00 2,500 03,00 Interest Payable 2,200 0 1,30 Profit before taxation 300 1,70 Taxation 350 60 (Loss) Profit after taxation…
ra subject-Accounting
7
19 - When vertical analysis is applied to the income statement of a business with net sales of TL 1,000,000 and non-operating expenses of TL 13,000, which of the following is the vertical analysis value of non-operating expenses (%)? a) 4.5 B) 2,5 NS) 5.5 D) 1.3 TO) 3.3
None
Line Item Description 20X1 20X2 Current assets: Accounts receivable $750,000 $582,500 Inventories 300,000 320,000 Current liabilities: Wages payable 700,000 515,000 Davis CompanyIncome StatementFor the Year Ended December 31, 20X2 Line Item Description Amount Amount Revenues $3,000,000 Cost of goods sold 1,920,000 Gross margin $1,080,000 Operating expenses Depreciation 270,000 Operating income $ 810,000 Other revenues and expenses Gain on sale of equipment 100,000 Interest expense 10,000 90,000 Net income $ 900,000 Required: Compute operating cash flows using the indirect method.
Fixed assets 267.5 million Sales 1,100.0 million Net Income 52.0 million Current liabilities 106.8 million Current ratio 3.10x Days sales outstanding 41.25 days Return on equity 12.50% Compute the return on assets.
calculate: Debt ratio Interest coverage ratio Dividend yield current asset- 1.170.7 million inventory- 859.9 million currant liability- 885.8 million total dedt- 1.598.8 million total assets- 2.452.3 million operating profit- 1.230.5 million interest expense- 10,700 thousand
Question on ROI DATA $ Revenue 97,000 Unearned Revenue 4000 BI 5000 El Purchases Core Current Assets Land for speculation PPE Operating assets for previous year 2500 38000 58,000 75000 260,000 185,000 Operating expenses Accrued expense ТАX RATE 24000 8000 25% DEBT USED 35% INTEREST EXPENSES 14000 DEBT 86000 REAL RATE INFLATION 4% 6% RISK PREMIUM 3.5% RISK FREE RATE 10% Training cost R & D expenses $34,000 $50,000 REQUIRED 1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY 4. CALCULATE RESIDUAL INCOME 5. CALCULATE EVA [ economic value added]
gross profit ratio
Question: Vertical Analysis of the Income statement Company A Company B Net sales 2,300,000 300,000 Cost of goods sold 1,100,000 200,000 Gross profit 1,200,000 100,000 Operating Expenses: Administrative expenses 120,000 20,000 Marketing expenses 220,000 30,000 Research and Development 500,000 10,000 Total Operating expenses 840,000 60,000 Interest expense 200,000 10,000 Net income 160,000 30,000 Required: Prepare a vertical analysis of these two companies. Compare and contrast the financial situation of these two companies assuming that they are in the same industry. Discuss fully.

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Case 2 Company ABC Assets turnover Gross Sales Sales Discounts 2% 1.050.000 35000 Gross Profit 18% Operating Profit 9% Permanent Capital 345.000,00 Financial Leverage 35% Acid Test ratio 1,5% Fixed assets turnover 4 Liquid assets 10%