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Comprehenaive Problem TLC Company wus eatablished on January 1. 2015 and a engaged in the manufacture of farm toolu. Thhe cumpany makes une of 365 daye in its computation for some of the ratios. You will find below their cuaiparative SFP & SCI for two years TLC Company Comparative Finaneial Statement Eor Yenr 2015. and 2016 2016 2015 Assets Cash Accounts Receivahle Trailing Securities Inventories Prepaid Expenses 400,000 100,000 20,000 80.000 290,000 120,000 40,000 60,000 10.000 520,000 20,000 620,000 Total Current Assets Total Non-Current Assets 300,000 920,000 200,000 720,000 Total Asseta Liabilities 18 50,000 450,000 Total Current Liabilities 100,000 Tatal Non-Current Linhilities Owner's Equity 350,000 Total Owner's 420.000 a00.000

Comprehenaive Problem TLC Company wus eatablished on January 1. 2015 and a engaged in the manufacture of farm toolu. Thhe cumpany makes une of 365 daye in its computation for some of the ratios. You will find below their cuaiparative SFP & SCI for two years TLC Company Comparative Finaneial Statement Eor Yenr 2015. and 2016 2016 2015 Assets Cash Accounts Receivahle Trailing Securities Inventories Prepaid Expenses 400,000 100,000 20,000 80.000 290,000 120,000 40,000 60,000 10.000 520,000 20,000 620,000 Total Current Assets Total Non-Current Assets 300,000 920,000 200,000 720,000 Total Asseta Liabilities 18 50,000 450,000 Total Current Liabilities 100,000 Tatal Non-Current Linhilities Owner's Equity 350,000 Total Owner's 420.000 a00.000

FINANCIAL ACCOUNTING
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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Comprehensive Problem TLC Company wus eatablishied on January 1, 2015 and is enguged in the manufacture of farm toolu. The company makes une of 365 days in its computation for some of the ratios. You will find below their eumparative SFP & SCI for two years TLC Company Comparative Financial Statement For Year 2015 and 2016 2016 2015 Anseta Cash Accounts Receivahle Trailing Securitien Inventaries 400,000 100,000 20,000 290,000 120,000 40,000 60,000 10,000 80,000 Prepaid Expenes 20,00) Total Current Assets 620,000 520,000 Tatal Non-Current Assets 300,000 200,000 720,000 Total Asseta 920,000 Liabilities 18 Total Current Liabilities Tutal Non-Current Liahities Owner's Equity 50,000 450,000 100,000 350,000 Total Owner's Equity Total Liahilities and Owner's Equity 420,000 300,000 920,000 720,000
Transcribed Image Text:Comprehensive Problem TLC Company wus eatablishied on January 1, 2015 and is enguged in the manufacture of farm toolu. The company makes une of 365 days in its computation for some of the ratios. You will find below their eumparative SFP & SCI for two years TLC Company Comparative Financial Statement For Year 2015 and 2016 2016 2015 Anseta Cash Accounts Receivahle Trailing Securitien Inventaries 400,000 100,000 20,000 290,000 120,000 40,000 60,000 10,000 80,000 Prepaid Expenes 20,00) Total Current Assets 620,000 520,000 Tatal Non-Current Assets 300,000 200,000 720,000 Total Asseta 920,000 Liabilities 18 Total Current Liabilities Tutal Non-Current Liahities Owner's Equity 50,000 450,000 100,000 350,000 Total Owner's Equity Total Liahilities and Owner's Equity 420,000 300,000 920,000 720,000
TLC Campany Companatiie Statement of Comprehensitve Income For Year 2015 and 2016 2016 2015 Net Sales 700,000 900,000 Less Cont of Goods Sold (100.000) 600,000 (80.000) 820,000 Gross Profit Less Operuting Expenses Earnings Before Interest and Taxen Less Interest Expense Net Income Before Tax Less Income Tax (50,000) (120,000) 550,000 700,000 (10,000) (50,000) 540,000 (162,000) 378,000 650,000 (195.000) Net Income 455,000 Ansuer on a separate sheet. Pad paper or any paper availabie in your hame. Write your NAME: FARM2/uection DATE Deepen W7:M14-Fin TRation Compute the ration linted below for 2016 and tell if it is good or bad. Show solution. 1. Working Capital 2. Current Ratio 13. Profit Margin Ratio 14. Return on Assets 15. Return on Equity 16. Asset Turnover Ratio 3. Quick/Acid Teat Ratio 4. A/R Turnover Ratio 5. Average Collection Period 6. Iniventory Turmover Ratio 7. Average Days in Inventory 8. Number of Days in OC 9. Debt to Total Assets Ratio 10. Debt to Equity Ratio 11. Times Interest Earned Rutio 12. Gros Profit Ratio
Transcribed Image Text:TLC Campany Companatiie Statement of Comprehensitve Income For Year 2015 and 2016 2016 2015 Net Sales 700,000 900,000 Less Cont of Goods Sold (100.000) 600,000 (80.000) 820,000 Gross Profit Less Operuting Expenses Earnings Before Interest and Taxen Less Interest Expense Net Income Before Tax Less Income Tax (50,000) (120,000) 550,000 700,000 (10,000) (50,000) 540,000 (162,000) 378,000 650,000 (195.000) Net Income 455,000 Ansuer on a separate sheet. Pad paper or any paper availabie in your hame. Write your NAME: FARM2/uection DATE Deepen W7:M14-Fin TRation Compute the ration linted below for 2016 and tell if it is good or bad. Show solution. 1. Working Capital 2. Current Ratio 13. Profit Margin Ratio 14. Return on Assets 15. Return on Equity 16. Asset Turnover Ratio 3. Quick/Acid Teat Ratio 4. A/R Turnover Ratio 5. Average Collection Period 6. Iniventory Turmover Ratio 7. Average Days in Inventory 8. Number of Days in OC 9. Debt to Total Assets Ratio 10. Debt to Equity Ratio 11. Times Interest Earned Rutio 12. Gros Profit Ratio
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