Current Attempt in ProgressCullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet andincome statement for 2019 and 2020 follow.AssetsCurrent assetsCashAccounts receivable, netInventoryOther current assetsTotal current assetsProperty, plant, & equipment, netTotal assetsLiabilities and Stockholders' EquityCurrent liabilitiesLong-term debtTotal liabilitiesSales revenue (all on account)Cost of goods soldGross profitOperating expensesNet operating incomeCullumber MedicalComparative Balance SheetAs of December 31Interest expenseNet income before taxesIncome taxes (30%)Net incomeDividends paidPreferred dividendsCommon dividendsTotal dividends paid.Net income retainedRetained earnings, beginning of yearRetained earnings, end of yeara. Gross margin percentageb. Return on assets2020$397,0001,089,000733,000381,4002,600,4008,616,295Preferred stock, $5 par valueCommon stock, $0.25 par valueRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equity $11,216,695 $10,561,8302020$3,156,0003,702,6006,858,600C. Return on common stockholders' equity8,439,830$11,216,695 $10.561.83058,950104,6504,194,4954.358,095Cullumber MedicalComparative Income Statement and Statement of Retained EarningsFor the Year$10,177,3005,612,300300,3001,424,450427,335$997,1152019$417,450776,400433,450462,950681,050534,115247,1002,122,000$2,846,0503,892,6006,738,650201958,950103,8504,565,000 4.315,2502,840,2502,634,2001,724,750 1,681,0503,660,3803,823,180$9,613,9505,298,700308,6501,372,400411,720$960,68029,500413,100442,600Calculate the following profitability ratios for 2020. (Round answers to 1 decimal place, e.g. 50.1%.)518,0803,660,380 3,142,300$4,194,495 $3,660,380%%%

Gross margin percentage. Formula: Gross Margin % = Gross Profit/Sales Revenue x100 Return on Asset…

Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balan income statement for 2019 and 2020 follow. Cullumber Medical Comparative Balance Sheet As of December 31 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets Sales revenue (all on account) Cost of goods cold 2020 $397,000 1,089,000 733,000 381,400 Liabilities and Stockholders' Equity Current liabilities $3,156,000 Long-term debt 3,702,600 Total liabilities 6,858,600 Preferred stock, $5 par value 58,950 Common stock, $0.25 par value 104,650 Retained earnings 4,194,495 Total stockholders' equity 4,358,095 Total liabilities and stockholders' equity $11,216,695 2,600,400 2,122,000 8,616,295 8,439,830 $11,216,695 $10,561,830 2020 Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2019 $10,177,300 $417,450 776,400 681,050 247,100 5.612.200 $2,846,050 3,892,600 6,738,650 58,950 103,850 3,660,380 3,823,180 $10,561,830 2019 $9,613,950 5 709 700

Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balan income statement for 2019 and 2020 follow. Cullumber Medical Comparative Balance Sheet As of December 31 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets Sales revenue (all on account) Cost of goods cold 2020 $397,000 1,089,000 733,000 381,400 Liabilities and Stockholders' Equity Current liabilities $3,156,000 Long-term debt 3,702,600 Total liabilities 6,858,600 Preferred stock, $5 par value 58,950 Common stock, $0.25 par value 104,650 Retained earnings 4,194,495 Total stockholders' equity 4,358,095 Total liabilities and stockholders' equity $11,216,695 2,600,400 2,122,000 8,616,295 8,439,830 $11,216,695 $10,561,830 2020 Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2019 $10,177,300 $417,450 776,400 681,050 247,100 5.612.200 $2,846,050 3,892,600 6,738,650 58,950 103,850 3,660,380 3,823,180 $10,561,830 2019 $9,613,950 5 709 700

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

Current Attempt in Progress
Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and
income statement for 2019 and 2020 follow.
Assets
Current assets
Cash
Accounts receivable, net
Inventory
Other current assets
Total current assets
Property, plant, & equipment, net
Total assets
Liabilities and Stockholders' Equity
Current liabilities
Long-term debt
Total liabilities
Sales revenue (all on account)
Cost of goods sold
Gross profit
Operating expenses
Net operating income
Cullumber Medical
Comparative Balance Sheet
As of December 31
Interest expense
Net income before taxes
Income taxes (30%)
Net income
Dividends paid
Preferred dividends
Common dividends
Total dividends paid.
Net income retained
Retained earnings, beginning of year
Retained earnings, end of year
a. Gross margin percentage
b. Return on assets
2020
$397,000
1,089,000
733,000
381,400
2,600,400
8,616,295
Preferred stock, $5 par value
Common stock, $0.25 par value
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity $11,216,695 $10,561,830
2020
$3,156,000
3,702,600
6,858,600
C. Return on common stockholders' equity
8,439,830
$11,216,695 $10.561.830
58,950
104,650
4,194,495
4.358,095
Cullumber Medical
Comparative Income Statement and Statement of Retained Earnings
For the Year
$10,177,300
5,612,300
300,300
1,424,450
427,335
$997,115
2019
$417,450
776,400
433,450
462,950
681,050
534,115
247,100
2,122,000
$2,846,050
3,892,600
6,738,650
2019
58,950
103,850
4,565,000 4.315,250
2,840,250
2,634,200
1,724,750 1,681,050
3,660,380
3,823,180
$9,613,950
5,298,700
308,650
1,372,400
411,720
$960,680
29,500
413,100
442,600
Calculate the following profitability ratios for 2020. (Round answers to 1 decimal place, e.g. 50.1%.)
518,080
3,660,380 3,142,300
$4,194,495 $3,660,380
%
%
%

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