Here are the abbreviated financial statements for Planner's Peanuts:INCOME STATEMENT, 2019SalesCost$ 9,0007,100Net income$ 1,900BALANCE SHEET, YEAR-END2018Assets$ 6,5002019$ 9,500Total$ 6,500$ 9,500DebtEquityTotal2018$ 8532019$1,0005,647$6,500 $9,5008,500a. If sales increase by 25% In 2020 and the company uses a strict percentage of sales planning model (meaning that all items on theIncome and balance sheet also increase by 25%), what must be the balancing item?b. What will be the value of this balancing item?Answer is not complete.a.Balancing itemDividendsb.Value

a).Balancing itemDividendsb).Value $250 THANK YOU

Answered: Here are the abbreviated financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 370,000 Costs 235,000 EBIT $ 135,000 Interest expense 27,000 Taxable income $ 108,000 Taxes (at 21%) 22,680 Net income $ 85,320 Dividends $ 51,192 Addition to retained earnings $ 34,128 BALANCE SHEET, YEAR-END, 2019 Assets Liabilities Current assets Current liabilities Cash $ 6,000 Accounts payable $ 13,000 Accounts receivable 11,000 Total current liabilities $ 13,000 Inventories 33,000 Long-term debt 270,000 Total current assets $ 50,000 Stockholders’ equity Net plant and equipment 310,000 Common stock plus additional paid-in capital 15,000 Retained earnings 62,000 Total assets $ 360,000 Total liabilities plus stockholders' equity $ 360,000 Sales and…
You are assessing the performance of a retail company, Alpha. The income statement and balancesheet for Alpha at the end of 2019 and 2020 are presented below. income statement 2020 2019 revenue 750 720 cost of goods sold 400 450 depreciation 50 50 operating profit 300 220 interest expenses 30 25 profit before tax 270 195 tax expenses 90 70 net profit 180 125 balance sheet 2020 2019 assets non current asset 2,000 1,800 accumulate depreciation 500 450 total non current asset 1,500 1,350 current asset inventory 400 550 trade receivables 600 550 bank 200 250 total current asset 1,200 1,350 total asset 2,700 2,700 equity and liabilities equity contributed equity 1,000 1,000 accumulated retained earnings 500 450 total equity 1,500 1,450 liabilities non current liabilities long term loans 500 400 current liabilities trade payables 550 750 other payables 150 100 total current…
The 2023 annual report for Pronghorn Industries Inc. contained the following information: Dec. 31, 2022 Dec. 31, 2023 Total assets 561,000 605,000Total liabilities 65,400 88,900Net revenue 410,000 530,000Net income 54,000 32,000 Calculate the rate of return on assets using profit margin for 2023
Use the balance sheets and information provided about revenue and expenses to answer the question. Stuart Company Balance Sheet As of December 31, 2022 (amounts in thousands) Cash Accounts Receivable Inventory Property Plant & Equipment, Gross 243,000 71,000 Accumulated Depreciation 71,000 67,000 Property Plant & Equipment, Net 172,000 235,000 28,000 302,000 Other Assets Total Assets 373,000 Total Liabilities & Equity 373,000 Stuart Company Balance Sheet As of March 31, 2023 (amounts in thousands) Cash 84,000 Accounts Payable 47,000 42,000 Accounts Receivable Debt Other Liabilities Total Liabilities Paid-In Capital Retained Earnings Total Equity 87,000 44,000 Accounts Payable Debt Other Liabilities Total Liabilities 19,000 28,000 Inventory 50,000 29,300 Property Plant & Equipment, Gross 243,000 76,300 Accumulated Depreciation 72,100 67,000 Property Plant & Equipment, Net 170,900 235,600 Other Assets 27,000 302,600 Total Assets 378,900 Total Liabilities & Equity 378,900 28,000 34,000…
Please help me with the attached problem
None
A company has the following items for the fiscal year 2020: Revenue =10 million EBIT = 5 million Net income = 2 million Total Equity = 20 million Total Assets = 40 million Calculate the company’s ROA and ROE
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.59 million. Interest expense is expected to remain unchanged at $36,000, and the firm plans to pay $66,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given LOADING... , along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why.
Calculate Return on Assets for 2021 using the following information: Net Income Net Sales Total Assets 53% 64% 20% 24% 2020 $2,500,000 $5,000,000 $10,000,000 2021 $3,000,000 $8,000,000 $15,000,000
Using Financial Statements for 2020, current ratio for the year 2020 is 1.62.
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 13% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income $ 6,800 4,900 $ 1,900 2021 Balance Sheet, Year-End 2020 Net assets $ 5,916 $ 5,500 Total $ 5,916 $ 5,500 Debt Equity Total 2021 $ 2,516 3,400 $ 5,916 2020 $ 2,433 3,067 $ 5,500 a. If the payout ratio is set at 60% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 60% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Maximum possible growth rate b. Maximum possible growth rate % %
Total Assets for Wendy's Pumpkins on 1 January 2020 was $650,000 and on 31 December 2020 was $850,000. Profit (before tax) for 2020 was $70,000, and the interest expense of the period was $20,000. What was the 2020 Rate of Return on Total Assets for Wendy's Pumpkins? formula: Rate of Return on Total Assets = Profit before Interest and Tax / Average Total Assets Select one: а. 4% O b. 9% О с. 16% O d. 12%

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

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