Presented below are the comparative income and retained earnings statements for Bridgeport Inc. for the years 2020 and 2021. Sales Cost of sales Gross profit Expenses Net income Retained earnings (Jan. 1) Net income Dividends Retained earnings (Dec. 31) 2021 $373,000 193,000 1. 180,000 94,600 $85,400 $111.700 85,400 (32.800) $164,300 2020 $246,000 135,000 111.000 46,300 $64,700 $72,000 64,700 (25,000) $111,700 The following additional information is provided: In 2021, Bridgeport Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $92.500 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $27.750 on the assets purchased at the beginning of 2020) 2. In 2021, the company discovered that the ending inventory for 2020 was overstated by $23.400: ending inventory for 2021 is correctly stated. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes) BRIDGEPORT INC. Retained Earnings Statement For the Year Ended 2021 $ 2020 Stitch It

Presented below are the comparative income and retained earnings statements for Bridgeport Inc. for the years 2020 and 2021. Sales Cost of sales Gross profit Expenses Net income Retained earnings (Jan. 1) Net income Dividends Retained earnings (Dec. 31) 2021 $373,000 193,000 1. 180,000 94,600 $85,400 $111.700 85,400 (32.800) $164,300 2020 $246,000 135,000 111.000 46,300 $64,700 $72,000 64,700 (25,000) $111,700 The following additional information is provided: In 2021, Bridgeport Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $92.500 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $27.750 on the assets purchased at the beginning of 2020) 2. In 2021, the company discovered that the ending inventory for 2020 was overstated by $23.400: ending inventory for 2021 is correctly stated. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes) BRIDGEPORT INC. Retained Earnings Statement For the Year Ended 2021 $ 2020 Stitch It

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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Here are comparative financial statement data for Vaughn Company and Mary Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities $ Long-term liabilities Common stock, $10 par Retained earnings (a) Vaughn Company Dollars 2022 $1,842,000 1,040,730 268,932 9,210 53,418 323,500 $314,800 520,500 501,500 64,000 109,000 497,500 173,500 $ 2021 74,800 Vaughn Company 91,000 497,500 153,000 Dollars I Condensed Income Statement Percent % 2022 % Mary Company $561,000 297,330 77.979 3,927 Prepare a vertical analysis of the 2022 income statement data for Vaughn Company and Mary Company. (Round percentages to 1 decimal place, e.g. 12.1%) 83,200 6,732 30,600 138,300 125,400 34,000 28,600 Vaughn Company 2021 4 $78,600 117,000 117,000 39,900 $ 24,200 Condensed Income Statement 34,200 Percent Dollars % % % % % % % % % $ Mary Company…
Data for Kahn, Inc. follows: Kahn, Inc. Comparative Income Statement Years Ended Dec. 31, 2019 and 2018 2019 2018 Net Sales Revenue 550,000 500,000 Expenses: Cost of Goods Sold 245,000 220,000 Selling and Administrative Expenses 100,000 96,000 Other Expenses (Interest Expense) 12,000 9,000 Income Tax Expense 58,000 47,000 Total Expenses 415,000 372,000 Net Income 135,000 128,000 Prepare a horizontal analysis of the comparative income statement of Kahn, Inc. (Round to one decimal place.)
Skysong Inc., a greeting card company, had the following statements prepared as of December 31, 2020. SKYSONG INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $6.900 Accounts receivable 61.900 50,500 Short-term debt investments (available-for-sale) 34,800 18,200 Inventory 39,900 59,800 Prepaid rent 4,900 4.000 Equipment 155,500 131,200 Accumulated depreciation-equipment (34,800 ) (25,300 ) Copyrights 45,700 50.200 Total assets $314,000 $295,500 Accounts payable $46,200 $39,700 Income taxes payable 4,000 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 7,900 10,000 Long-term loans payable 59.800 68,600 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 58,200 37,100 Total liabilities & stockholders' equity $314,000 $295,500
Provided below are the financial statements for J Ltd.: Income statement Balance Sheet Net sales $984 2021 2020 Assets Cost of goods sold $752 Current assets $452 $354 Depreciation $27 Long-term assets $389 $374 EBIT $205 Total assets $841 $728 Interest expense $25 Liabilities and shareholders' equity Current liabilities $247 $164 Income before taxes $180 Long-term debt $157 $145 Taxes $27 Shareholders' equity $437 $419 Net income $153 Total liabilities and shareholders' equity $841 $728 Calculate economic value added (EVA), assuming cost of capital is 7.5%. (Round all the intermediate calculations and the final answer to 2 decimal places) $131.95 $135.70 $98.40 $129.70
Excerpts from TPX Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable $82,000 $81,000 Inventory 90,000 73,000 Net sales 420,000 375,000 Cost of goods sold 260,000 221,000 Total assets 825,000 760,000 Total stockholders' equity 490,000 450,000 Net income 78,000 58,000 TPX Company's 2021 gross profit ratio is: (Round your answer to one decimal place.) Multiple Choice 61.9%. 43.1%. 47.1%. 38.1%.
Here is the income statement for Tamarisk, Inc. TAMARISK, INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $419,200 251,500 Cost of goods sold Gross profit 167,700 Expenses (including $14,200 interest and $28,000 income taxes) 73,500 $94,200 Net income Additional information: Common stock outstanding January 1, 2020, was 24,400 shares, and 39,100 shares were outstanding at December 31, 2020. 1. The market price of Tamarisk stock was $12 in 2020. 2. Cash dividends of $22,800 were paid, $5,300 of which were to preferred stockholders. 3. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.5 1%) $ (a) Earnings per share (b) Price-earnings ratio times (c) Payout ratio (d) Times interest earned times
he following information is related to the Doll Pty Ltd. Description 2018 2020 Total revenues (Sales) $2,580 $5,880 Total assets: Beginning of year 1,200 2,290 End of year 1120 2,381 The ratio of sales to assets for 2018 and 2020 will be: Select one: a. 2.22 And 2.52 b. 2.30 And 2.47 c. 1.11 And 1.26 d. 2.15 And 2.56
Presented below are the comparative income and retained eamings statements for Buffalo Inc. for the years 2020 and 2021. 2021 2020 Sales $314,000 $272,000 Cost of sales 200,000 147,000 Gross profit 114,000 125,000 Еxpenses 94,500 52,700 Net income $19,500 $72,300 Retained earnings (Jan. 1) $116,900 $70,700 Net income 19,500 72,300 Dividends (27,000 ) (26,100 ) Retained earnings (Dec. 31) $109,400 $116,900 The follawing additional information is provided: In 2021, Buffalo Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $98,000 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $29,400 on the assets purchased at the beginning of 2020.) 1. In 2021, the company discovered that the ending inventory for 2020 was overstated by $24,100; ending inventory for 2021 is correctly stated. 2. Prepare the revised…
Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018(in thousands) 2017 Gross sales $2,004,719 $1,937,021 $1,835,987 Less: Sales discounts 4,811 4,649 4,406 Less: Sales returns and allowances 2,406 2,324 2,203 Net sales $1,997,502 $1,930,048 $1,829,378 Cost of goods sold 621,463 619,847 660,955 Gross profit $1,376,039 $1,310,201 $1,168,423 Operating expenses 577,369 595,226 583,555 Operating income $798,670 $714,975 $584,868 Other income (expenses) 15,973 (6,140) (8,773) Net income $814,643 $708,835 $576,095 At December 31 2019 2018(in thousands) 2017 Accounts receivable $201,290 $195,427 $182,642 Less: Allowance for doubtful accounts 2,516 2,736 2,192 Net accounts receivable $198,774 $192,691 $180,450 Required: 1. Calculate the following ratios for 2018 and 2019. Round your answers…
The comparative statements of Wahlberg Company are presented here. 2 of 4 Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $1,813,300 $1,745,300 Cost of goods sold 1,010,100 994,000 Gross profit 803,200 751,300 Selling and administrative expenses 512.200 481,600 Income from operations 291,000 269,700 Other expenses and losses Interest expense 18,700 14,000 Income before income taxes 272,300 255,700 Income tax expense 82,022 77,800 Net income $ 190,278 $ 177,900 Wahlberg Company Balance Sheets December 31 Assets 2020 2019 Current assets Cash $59,500 $64,500 Debt investments (short-term) 70,800 50,500 Accounts receivable 117,900 101,500 Inventory 123,000 115,600 Total current assets 371,200 332,100 Plant assets (net) 600,700 516,300 Total assets $971,900 $848,400 Liabilities and Stockholders' Equity Current liabilities Accounts payable $159,000 $144,100 Income taxes payable 42,200 41,200 Total current liabilities 201,200 185,300 Bonds payable 220,000…
The following are the financial statement Quick Ltd. for the year ended 31st December 2020: Quick Ltd. Income statement For year ended 31st December 2020 $”000” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) Profit before tax 150.00 Tax (70.00) Profit after tax 80.00 Quick Ltd. Statement of financial position as at 31 December 2020 2019 $”000” $”000d” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25…