Following are the summarised Balance sheet of ABC Ltd.:Liabilities20092010Assets20092010$$$$Share Capital3,00,000 4,50,000 Machinery5,00,000 6,00,000Debentures1,00,000 1,50,0001,00,000 1,00,000 Furniture80,000 StockSundry Creditors75,00050,00060,000Reserves and Surplus1,50,000 1,75,000 Debtors10,00050,000Profit and Loss A/c1,60,000 1,85,000Cash50,000 50,000Bank50,000 60,000Discount on issue of shares25,000 20,0007,85,000 9,90,0007,85,000 9,90,000You are required to give possible reasons for changes in operational profits andcomment on its operational efficiency, if operating profits for the year 2009 were$ 40,000 and sales for the years 2009 and 2010 were $ 2,50,000 and $ 4,50,000respectively.

Ratio is the indicated quotient of two mathematical expressions and as the relationship between two…

Following are the summarised Balance sheet of ABC Ltd.: Liabilities 2009 2010 Assets 2009 2010 $ $ 3,00,000 4,50,000 Machinery 5,00,000 6,00,000 Share Capital Debentures 1,00,000 1,00,000 Furniture 1,00,000 1,50,000 Sundry Creditors 75,000 80,000 Stock 50,000 60,000 10,000 50,000 Reserves and Surplus Profit and Loss A/c 1,50,000 1,75,000 Debtors 1,60,000 1,85,000 Cash Bank 50,000 50,000 50,000 60,000 Discount on issue of shares 25,000 20,000 7,85,000 9,90,000 7,85,000 9,90,000 You are required to give possible reasons for changes in operational profits and comment on its operational efficiency, if operating profits for the year 2009 were $ 40,000 and sales for the years 2009 and 2010 were $ 2,50,000 and $ 4,50,000 respectively.

Following are the summarised Balance sheet of ABC Ltd.: Liabilities 2009 2010 Assets 2009 2010 $ $ 3,00,000 4,50,000 Machinery 5,00,000 6,00,000 Share Capital Debentures 1,00,000 1,00,000 Furniture 1,00,000 1,50,000 Sundry Creditors 75,000 80,000 Stock 50,000 60,000 10,000 50,000 Reserves and Surplus Profit and Loss A/c 1,50,000 1,75,000 Debtors 1,60,000 1,85,000 Cash Bank 50,000 50,000 50,000 60,000 Discount on issue of shares 25,000 20,000 7,85,000 9,90,000 7,85,000 9,90,000 You are required to give possible reasons for changes in operational profits and comment on its operational efficiency, if operating profits for the year 2009 were $ 40,000 and sales for the years 2009 and 2010 were $ 2,50,000 and $ 4,50,000 respectively.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: he condensed balance sheet and income statement data for Symbiosis Corporation are presented below.…

A: Horizontal analysis The purpose of preparing the Horizontal analysis to analyze the details of two…

Q: ngs per share a. Construct the statement of stockholders' equity for December 31, 2021. No common…

A: Stockholders' equity refers to the value of the business that is owned by the stockholders of the…

Q: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable…

A: Through ratio analysis, companies can evaluate both their financial strengths and weaknesses.…

Q: prepare Common Size Balance sheet:

A: A common-size statement is such where each line item is expressed as a percentage of the top/bottom…

Q: H Company provided the following information at the end of 2016: Common stock Paid-in surplus Total…

A: Shareholders' equity is the amount of money invested by the owners in the business. It is reported…

Q: Some selected financial statement items belonging to MNO Company are given in the table below.…

A: Return on assets is the ratio of net income with average assets invested in the business.

Q: Austin Technology Co. had the following current assets and liabilities for two comparative years:…

A: Current assets means those assets which will be converted in to cash in near future generally one…

Q: A comparative balance sheet for Gena Company appears below: GENA COMPANY Comparative Balance Sheet…

A: A cash flow statement provides data regarding all cash inflows that a company receives from its…

Q: Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below.…

A: Preparation of Comparative Balance Sheet It provides the information about the total percentage…

Q: Below are the financial statements for Aspirations Pty Ltd. Statement of Financial Position at 30…

A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Q: Comparitive balance sheet of Hillard Co. as of Dec 31, Assets 2020 2021 Cash Accounts Receivable…

A: A cash flow statement indicates cash inflow and cash outflow information for a particular time…

Q: Condensed financial data of Martinez Company for 2020 and 2019 are presented below. MARTINEZ…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Suppose the Crane Ltd's 2020 financial statements contain the following selected data (in millions).…

A: The ratio analysis is the analysis of various elements of the financial statements. The ratio…

Q: Presented below is the balance sheet for HHD, Inc., at December 31, 2021. Current assets Investments…

A: Balance sheet is one of the important financial statement of business, which shows financial…

Q: (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash…

A: Introduction: A statement of cash flows is a financial statement that describes how much money comes…

Q: Balance Sheet as at December Current Assets Cash Accounts Receivable Inventory Total Current Assets…

A: Cash Flow statement - a statement that depicts the cash inflows and cash outflows of the entity in…

Question

Following are the summarised Balance sheet of ABC Ltd.:
Liabilities
2009
2010
Assets
2009
2010
$
$
$
$
Share Capital
3,00,000 4,50,000 Machinery
5,00,000 6,00,000
Debentures
1,00,000 1,50,000
1,00,000 1,00,000 Furniture
80,000 Stock
Sundry Creditors
75,000
50,000
60,000
Reserves and Surplus
1,50,000 1,75,000 Debtors
10,000
50,000
Profit and Loss A/c
1,60,000 1,85,000
Cash
50,000 50,000
Bank
50,000 60,000
Discount on issue of shares
25,000 20,000
7,85,000 9,90,000
7,85,000 9,90,000
You are required to give possible reasons for changes in operational profits and
comment on its operational efficiency, if operating profits for the year 2009 were
$ 40,000 and sales for the years 2009 and 2010 were $ 2,50,000 and $ 4,50,000
respectively.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Selected data from the Carmen Company at year-end are as follows: Total assets Average total assets Net income Sales Average common stockholders' equity Net cash provided by operating activities Shares of common stock outstanding Long-term investments $2,000,000 $2,200,000 $250,000 $1,300,000 $1,000,000 $275,000 10,000 $400,000 Required: Compute the (a) asset turnover, (b) return on total assets, (c) return on common stockholders' equity, and (d) earnings per share on common stock. Assume the company had no preferred stock or interest expense. Round dol values to the nearest cent and other final answers to one decimal place. a. Asset turnover ratio b. Return on total assets c. Return on common stockholders' equity d. Earnings per share on common stock 1000 % % per share K
Given the following information, what is the ratio of liabilities to stockholders’ equity?
Cash Accounts receivable (net) Other current assets Investments Property, plant, and equipment (net) Current liabilities Long-term debt Common stock, $10 par Retained earnings Blue Corporation Balance Sheets December 31 Net income 2025 $31,000 $21,000 51,000 95,000 60,000 500,000 $86,000 150,000 370,000 $737,000 $612,000 $81,000 325,000 176,000 $737,000 Blue Corporation Income Statements For the Years Ended December 31 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) 2024 46,000 100.000 2025 75,000 90,000 315,000 $745,000 41,000 704,000 430,000 2023 $19,000 49,000 126,000 114,000 $612,000 $545,000 69,000 2024 50,000 358,000 $545,000 $71,000 55,000 305,000 $605,000 31,000 574,000 355,000 219,000 151,000 274,000 181,000 $93,000 $68,000
Consider the following abbreviated financial statements for Raines Corp: Current Assets Net fixed assets Raines Corp 2018 and 2019 Partial Balance Sheet Assets 2018 $4,810 2019 $5,930 13,650 16,800 -$3,848.8 -$1,165.8 $381.2 $4,562.8 Liabilities and Owners' Equity 2018 2019 $2,900 $3,150 Current liabilities Common Stock 8,310 8,700 Raines Corp 2019 Income Statement Sales Costs Depreciation Interest paid $25,800 16,050 4,050 The tax rate for 2019 was 34%. Dividends paid during 2019 were $1,300. What is the cash flow from assets for 2019? 1,880
Comparative balance sheets for Hamilton Company are presented below. Hamilton Company Comparative Balance Sheet Decemebr 31 Assets 2017 2016 Cash 78000 12000 Accoutns Receivable 93000 76000 Inventory 180000 189000 Land 75000 100000 Equipemnt 250000 210000 Accu Dep - Equipment (66,000) (42,000) Total 610000 545000 Liability and Equity Accounts Payable 34000 47000 Bonds Payable 150000 200000 Common Stock ($1 Par ) 214000 164000 Retained Earnings 212000 134000 Total 610000 545000 Additional information: 1. Net income for 2017 was $134000 2. Cash dividends of $65,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.…
perating data for Navarro Corporation are presented below. Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $1 par Retained earnings Instructions December 31, 2017 $125,000 396,000 91,000 133,000 161,000 136,000 December 31, 2016 $100,000 330,000 70,000 95,000 115,000 150,000 Prepare horizontal and vertical analyses. (LO 1) Prepare a schedule showing a vertical analysis for 2017 and 2016. E18-3 The comparative condensed balance sheets of Gurley Corporation