Homework Help is Here – Start Your Trial Now!
Business
Accounting
Comment on the performance of Bart D’Souza’s company. How is the company doing? He is working at this business part-time.  Should he quit his other job and work at this full-time?  Should he do the opposite – and exit the business?  Or, should he stay the course and see how things unfold?  What other kinds of information might you want to know to answer these questions?

Comment on the performance of Bart D’Souza’s company. How is the company doing? He is working at this business part-time.  Should he quit his other job and work at this full-time?  Should he do the opposite – and exit the business?  Or, should he stay the course and see how things unfold?  What other kinds of information might you want to know to answer these questions?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
  1. Comment on the performance of Bart D’Souza’s company. How is the company doing? He is working at this business part-time.  Should he quit his other job and work at this full-time?  Should he do the opposite – and exit the business?  Or, should he stay the course and see how things unfold?  What other kinds of information might you want to know to answer these questions? 
ANNETILIA ML. ναιιανιαιινιωιωι WINES Comparative Income Statement ($M) For the Years Ended Dec 31, 2009 to 2014 Sales Cost of Goods Sold Gross Profit Selling and Administration Depreciation Operating Profit Interest Earnings Before Taxes Taxes Net Income 2011 2012 2013 2014 $725.45 $793.34 $814.55 $856.00 2009 2010 $287.14 $299.45 $209.69 $210.45 $506.91 $559.53 $595.34 $629.43 $ 77.45 $ 89.00 $218.54 $233.81 $219.21 $226.57 $ 57.34 $60.06 $104.14 $125.53 $136.57 $160.23 $7.53 $13.54 $21.54 $ 20.89 $21.22 $26.54 $ 12.58 $15.40 $ 92.86 $ 87.39 $61.42 $ 39.80 $9.41 $ 12.53 $35.51 $24.67 $17.96 $13.01 $ 3.17 $2.87 $57.35 $ 62.72 $ 43.46 $26.79 1.01 $0.92 $18.35 $20.07 $13.91 $ 8.57 $ 2.16 $ 1.95 $39.00 $42.65 $29.55 $18.22 $ tax rate 32% 1 - tax rate 68% Net Income +1(1-tax rate) $ 8.57 Cash A/R Inventory Appendix A2: Canadian Motorbikes Comparative Balance Sheet ($M) For the Years Ended Dec 31, 2009 to 2014 2009 Total Current Assets Land, Plant and Equipment Other Assets Total Assets 32% 68% $10.46 $ 63.15 A/P Current Portion of LT Debt Total Current Liabilities Long-term Debt Total Liabilities Shareholders' Equity Total Liabilities and Equities 32% 68% 32% 32% 32% 68% 68% 68% $59.43 $ 41.76 $ 27.07 2011 2014 2010 2012 2013 $ 10.76 $ 20.56 $ 25.78 $ 38.55 $ 34.21 $ 29.75 $ 45.01 $ 48.54 $ 84.89 $ 85.39 $ 95.32 $ 99.23 $ 17.12 $79.66 $ 82.69 $ 79.30 $ 53.88 $ 75.33 $72.89 $148.76 $193.36 $203.24 $183.41 $204.31 $ 54.32 $ 162.28 $184.18 $ 178.01 $ 182.74 $211.48 $ 2.47 $ 5.39 $ 8.38 $ 8.82 $9.49 $ 11.65 $129.68 $316.43 $385.92 $390.07 $375.64 $427.44 $ 53.77 $ 90.73 $112.15 $109.96 $129.04 $189.84 $ 2.88 $ 18.09 $ 18.77 $ 14.32 $ 8.56 $ 6.22 $ 52.82 $185.45 $193.84 $161.98 $109.47 $294.27 $324.76 $286.26 $ 20.21 $ 22.16 $ 61.16 $ 103.81 $129.68 $316.43 $385.92 $390.07 $ 56.65 $108.82 $130.92 $124.28 $137.60 $ 196.06 $104.68 $ 79.80 $242.28 $275.86 $ 133.36 $ 151.58 $375.64 $427.44
Transcribed Image Text:ANNETILIA ML. ναιιανιαιινιωιωι WINES Comparative Income Statement ($M) For the Years Ended Dec 31, 2009 to 2014 Sales Cost of Goods Sold Gross Profit Selling and Administration Depreciation Operating Profit Interest Earnings Before Taxes Taxes Net Income 2011 2012 2013 2014 $725.45 $793.34 $814.55 $856.00 2009 2010 $287.14 $299.45 $209.69 $210.45 $506.91 $559.53 $595.34 $629.43 $ 77.45 $ 89.00 $218.54 $233.81 $219.21 $226.57 $ 57.34 $60.06 $104.14 $125.53 $136.57 $160.23 $7.53 $13.54 $21.54 $ 20.89 $21.22 $26.54 $ 12.58 $15.40 $ 92.86 $ 87.39 $61.42 $ 39.80 $9.41 $ 12.53 $35.51 $24.67 $17.96 $13.01 $ 3.17 $2.87 $57.35 $ 62.72 $ 43.46 $26.79 1.01 $0.92 $18.35 $20.07 $13.91 $ 8.57 $ 2.16 $ 1.95 $39.00 $42.65 $29.55 $18.22 $ tax rate 32% 1 - tax rate 68% Net Income +1(1-tax rate) $ 8.57 Cash A/R Inventory Appendix A2: Canadian Motorbikes Comparative Balance Sheet ($M) For the Years Ended Dec 31, 2009 to 2014 2009 Total Current Assets Land, Plant and Equipment Other Assets Total Assets 32% 68% $10.46 $ 63.15 A/P Current Portion of LT Debt Total Current Liabilities Long-term Debt Total Liabilities Shareholders' Equity Total Liabilities and Equities 32% 68% 32% 32% 32% 68% 68% 68% $59.43 $ 41.76 $ 27.07 2011 2014 2010 2012 2013 $ 10.76 $ 20.56 $ 25.78 $ 38.55 $ 34.21 $ 29.75 $ 45.01 $ 48.54 $ 84.89 $ 85.39 $ 95.32 $ 99.23 $ 17.12 $79.66 $ 82.69 $ 79.30 $ 53.88 $ 75.33 $72.89 $148.76 $193.36 $203.24 $183.41 $204.31 $ 54.32 $ 162.28 $184.18 $ 178.01 $ 182.74 $211.48 $ 2.47 $ 5.39 $ 8.38 $ 8.82 $9.49 $ 11.65 $129.68 $316.43 $385.92 $390.07 $375.64 $427.44 $ 53.77 $ 90.73 $112.15 $109.96 $129.04 $189.84 $ 2.88 $ 18.09 $ 18.77 $ 14.32 $ 8.56 $ 6.22 $ 52.82 $185.45 $193.84 $161.98 $109.47 $294.27 $324.76 $286.26 $ 20.21 $ 22.16 $ 61.16 $ 103.81 $129.68 $316.43 $385.92 $390.07 $ 56.65 $108.82 $130.92 $124.28 $137.60 $ 196.06 $104.68 $ 79.80 $242.28 $275.86 $ 133.36 $ 151.58 $375.64 $427.44
Appendix A3: Canadian Motorbikes Industry Averages Current Ratio Cash Ratio Inventory Turnover (days) A/R Turnover (days) A/P Turnover (days) Cash Conversion Cycle Fixed Assets Turnover Total Assets Turnover Debt Ratio Times Interest Earned Gross Profit Margin Operating Profit Margin Net Profit Margin Retum on Assets Retum on Equity 1.25 0.27 44.12 32.45 60.23 16.35 3.72 2.05 0.54 9.33 32.00% 14.00% 8.50% 17.46% 38.25%
Transcribed Image Text:Appendix A3: Canadian Motorbikes Industry Averages Current Ratio Cash Ratio Inventory Turnover (days) A/R Turnover (days) A/P Turnover (days) Cash Conversion Cycle Fixed Assets Turnover Total Assets Turnover Debt Ratio Times Interest Earned Gross Profit Margin Operating Profit Margin Net Profit Margin Retum on Assets Retum on Equity 1.25 0.27 44.12 32.45 60.23 16.35 3.72 2.05 0.54 9.33 32.00% 14.00% 8.50% 17.46% 38.25%
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting profession
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS