Current Attempt in ProgressYou are considering investing in the grocery sector and have identified two companies for further analysis. Financial information forthe two companies is as follows:(in thousands)CompanyCraneCompanyCullumberSales$1,940,000$1,750,000Cost of goods sold1,746,0001,505,000Net income103,00099,000Average inventory151,000218,000Average total assets786,000755,476(a) Calculate and compare the following ratios for the two companies: (Round inventory turnover to 2 decimal places, e.g. 15.25 and otheranswers to 1 decimal place, e.g. 18.4 or 15.3%.)i.Return on assetsHomework AssignmentQuestion 10 of 30>Company CraneCompany CullumberReturn on assets%Gross marginProfit marginInventory turnover%%times%di%%timesDays to sell inventorydaysdays-/1

To calculate and compare the return on assets (ROA) for Company Crane and Company Cullumber, we will…

Answered: Current Attempt in Progress You are…

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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The following information is taken from the financial statements of Down Home Deli for the last three years. The owner, John Walton is quite pleased to see that his sales are growing steadily. 2018 2017 2016 Sales $ 61,500 $ 50,400 $ 42,000 Cost of goods sold 27,670 21,170 16,800 Operating income 7,530 6,050 4,620 Net income 3,075 4,030 2,940 Instructions: (a) Calculate gross profit margin, profit margin, and profit margin using operating income. (b) Comment on whether the Deli is, in fact, doing better over the three years as John believes.
Olly Company is a merchandising business that sells dog food. Based on the following information, what is the gross margin for Olly Company? Sales Revenue Cash $500,000 100,000 Accounts Receivable 50,000 Inventory 25,000 Cost of goods sold 300,000 Operating expenses 40,000 O $135,000 $160,000 $200,000 $285,000
Supply the missing dollar amounts for the income statement of Williamson Company for each of the following independent cases: Sales Revenues, gross Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit $ Case A 8,500 200 6,000
Assume a merchandising company had credit sales of $380,000, cost of goods sold of $187,000, and net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 39,000 $ 44,000 Income taxes payable $ 13,000 $ 10,000 If the company purchases its merchandise inventory on account, then based solely on the information provided, the company’s cash paid for inventory purchases would be: Garrison 17e Rechecks 2020-10-02 Multiple Choice $189,000. $185,000. $195,000. $179,000.
! Required information Use the following information for the Quick Studies below. (Algo) ($ thousands) Net sales Current Year $ 803,470 394,775 Prior Year $ 455,095 135,878 Cost of goods sold QS 17-7 (Algo) Trend percents LO P1 Determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. (Enter the answers in thousands of dollars.) Current Year: Prior Year: Numerator: Trend Percent for Net Sales: 1 1 1 1 Denominator: = = = Trend Percent 0 % 0 %
Sisyphus Inc. records total sales of $657,500 in the current period, with a cost of goods sold of $389,000 . Sisyphus expects 4% of sales to be returned. How much in net sales will Sisyphus recognize for the current period? Group of answer choices $373,400 $268,500 $631,200 $657,500 $257,760 The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflow
Income statement information for Lucy Company is provided below. Sales $175,000 Cost of goods sold 105,000 Gross profit $ 70,000 Required: Prepare a vertical analysis of the income statement for Lucy Company. Lucy Company Vertical Analysis of the Income Statement Amount Percentage Sales $175,000 fill in the blank 1% Cost of goods sold 105,000 fill in the blank 2% Gross profit $70,000 fill in the blank 3%
A company reported the following: Cost of Goods Sold General, Selling, and Administrative Expenses Income Tax Expense Inventory Net Income Sales Revenue Sales Discounts Sales Returns & Allowances What is the amount of gross profit? Multiple Choice $108,360 $98,950 $121,000 $203, 200 53,120 3,920 16,500 26,080 292,000 3,040 2,640
! Required information [The following information applies to the questions displayed below.] The Slumber Store (TSS) is a national wholesaler of beds, mattresses, pillows, and sheets. Key totals from TSS's most recent and forecasted financial statements are presented in the table below. From the income statement Sales Revenue Cost of Goods Sold Gross Profit From the balance sheet Inventories Last Year $ 560,000 346,500 213,500 This Year $ 615,000 405, 250 209,750 Last Year This Year $ 88,000 $ 101,808 Next Year $ 770,000 556,300 213,700 Next Year $ 179,825 Required: 1. Use the financial statement totals to compute the company's actual inventory turnover ratio for this year and its forecasted inventory turnover ratio for next year. Also compute the days-to-sell for this year (actual) and next year (forecasted). Is inventory turnover expected to improve or worsen next year? 2. Use the financial statement totals to compute the company's actual gross profit percentage for this year and its…
Complete the following data taken from the condensed income statements for merchandising Companies A, B, and C. Company A Company B Company C Net income $385 $235 Sales 875 530 Gross profit 425 315 Operating expenses 45 Cost of goods sold 550 335 %24
Sales Sales discounts Sales returns and allowances Cost of goods sold Carrier $ 165,000 4,000 17,000 95,760 Net sales Gross profit Gross margin ratio Carrier Lennox $ 850,000 19,500 6,000 507,892 Complete this question by entering your answers in the tabs below. (a) Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. (b) Which company has the better gross margin ratio? Lennox Trane $ 53,000
Use the following selected information from Corolla to determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base. Year 2 Year 1 Net sales $ 277,700 $ 231,700 Cost of goods sold 151,600 129,890 Operating expenses 54,940 52,940 Net earnings 28,320 20,120 Multiple Choice 116.7% for Year 2 and 100.0% for Year 1. 54.6% for Year 2 and 56.1% for Year 1. 36.2% for Year 2 and 40.8% for Year 1. 65.6% for Year 2 and 64.6% for Year 1. 119.9% for Year 2 and 100.0% for Year 1.

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