Q No.1 Use the following selected financial data for Happy Valley Co. to answerquestions.Net salesRs.200,000Cost of goods soldOperating expenses90,00080,00010,000180,000120,000Net incomeTotal assetsTotal liabilitiesCalculate (1) debt ratio (2) operating profit margin (3) return on equity (4) netprofit margin (5) Gross Profit ratio (6) Operating expense ratio (7) Assets turnoverQ No.2 Use the following selected financial information for Cascabel Corporation toanswer questionsCascabel CorporationBalance SheetDecember 31, 2015Liabilities and stockholders' equityCurrent liabilitiesAccounts payableAccrued liabilitiesAssetsCurrent assetsCashShort-term investmentsAccounts receivable3610256152Total current liabilitiesInventoryOther current assets57Long-term debt102Total current assets129 Total liabilities163Stockholders' equity195 Common stock (10)51Total stockholders' equity324 Total liabilities and equity 324Long-term assetsNet Plant110Retained earnings161Total assetsCascabel CorporationIncome StatementFor the Year Ended December 31, 2015Net salesCost of goods soldGross profitOperating expensesOperating profitInterest expense3452489774238. Earnings before taxesIncome tax expenseNet profit1511Additional information: Market price of stock is Rs.25. Firm declared and paid dividen20% on par value of stock.Compute following ratios:Current ratio (2) Quick ratio (3)Debt ratio (4)Equity ratio (5)Inventory turnover indays(use 360 days) (6) Receivable turnover in days(use 360 days) (7) Earnings pershare (8)Book value per share (9)Interest coverage ratio (10) Gross Profit ratioQ No.3 Selected data from recent annual reports of the Coca-Cola Compnay and PepsCo, Inc. are shown.Coca-ColaPepsi CoBalance sheet statistics:At year end:Quick assets20022774Current assets36043551Total assets828315127Current liabilitiesTotal liabilities36583692479811236Total stockholders' equity34853891Additional information:A/c Receivable8021110Inventory784494Income Statement data:Net Sales896615242Cost of goods soldInterest expenseNet income389274683086101724901Compute the following for each company:1. Net income as a percentage of sales

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Q No.1 Use the following selected financial data for Happy Valley Co. to answer questions. Net sales Rs.200,000 Cost of goods sold Operating expenses Net income 90,000 80,000 Total assets Total liabilities 10,000 180,000 120,000 Calculate (1) debt ratio (2) operating profit margin (3) return on equity (4) net profit margin (5) Gross Profit ratio (6) Operating expense ratio (7) Assets turnover

Q No.1 Use the following selected financial data for Happy Valley Co. to answer questions. Net sales Rs.200,000 Cost of goods sold Operating expenses Net income 90,000 80,000 Total assets Total liabilities 10,000 180,000 120,000 Calculate (1) debt ratio (2) operating profit margin (3) return on equity (4) net profit margin (5) Gross Profit ratio (6) Operating expense ratio (7) Assets turnover

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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With the statement of comprehensive income below, conduct a vertical analysis.
Given the following information: $8 million $10 million $7 million $3 million Average Inventory: $6 million Average A/R: Average Fixed Assets: Accounts Payables:$4 million Revenues: $2 million Liabilities: Total Expenses: Cost of Goods Sold: $10 million Assume no other assets or liabilities exist beyond what is articulated above. a. Compute Net Profit Margin b. Compute Total Asset Turnover c. Compute Return on Equity (ROE) d. Compute Inventory Turnover e. How much equity would have to be swapped out for debt to increase ROE by 1% assuming that nothing else changes? f. What is the firm's sustainable growth rate if dividends are equal to $0.5 million?
Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 169,000 $ 1,300 $ 282,000 $ 44,000 Book value per share Earnings per share Cash flow per share $ 7,400 $5,000 21% $ 22,000 $ 21,000 $ 92,000 $ 37,000 $ 120,000 $ 6,000 $ 33,000 $ 64,000 During the year, Smashville, Incorporated, had 20,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. $ 7.75
Question 1 The following are financial statements of Crane Company. Crane CompanyIncome StatementFor the Year Ended December 31, 2022 Net sales $2,192,500 Cost of goods sold 1,010,500 Selling and administrative expenses 900,500 Interest expense 78,000 Income tax expense 62,500 Net income $ 141,000 Crane CompanyBalance SheetDecember 31, 2022 Assets Current assets Cash $ 55,100 Debt investments 89,000 Accounts receivable (net) 168,400 Inventory 236,500 Total current assets 549,000 Plant assets (net) 572,500 Total assets $ 1,121,500 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 152,000 Income taxes payable 31,000 Total current liabilities 183,000 Bonds payable 220,740 Total liabilities 403,740 Stockholders’ equity Common stock 345,000 Retained earnings 372,760…
what does the percentages mean in vertical analysis? Year 4 % of Sales Year 3 % of Sales Assets Current Assets Cash $ 40,000 6.67 $ 36,000 6.67 Marketable Securities 20000 3.33 6000 1.11 Accounts Receivable 54000 9.00 46000 8.52 Inventories 135000 22.50 143000 26.48 Prepaid Items 25000 4.17 10000 1.85 Total Assets current 274000 45.67 241000 44.63 Investments 27000 4.50 20000 3.70 plant net 270000 45.00 255000 47.22 Land 29000 4.83 24000 4.44 Total Assets $ 600,000 100.00 $ 540,000 100.00 Liabilities and Stock equity Liabilities Current Liabilities Notes payable $ 17,000 2.83 $ 6,000 1.11 Accounts payable 113800 18.97 100000 18.52 salaries payable 21000 3.50 15000 2.78 Total current liabilities 151800 25.30 121000 22.41 Noncurrent liabilities…
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