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Refer the following table. Cash Tia's Trampolines Inc. Comparative Balance Sheet Information November 30 (millions of $) Accounts receivable (net) Plant and equipment (net) Accounts payable Long-term notes payable Preferred shares 2023 $ 205 280 2022 $ 593 2021 $ 618 317 136 1,446 1,530 1,826 60 136 224 965 1,285 1,445 165 165 165 645 645 645 96 209 101 Connon shares Retained earnings The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year. Net sales Tia's Trampolines Inc. Income Statement For Year Ended November 30 (millions of $) Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Interest expense Income tax expense Profit 2023 2022 2021 $4,020 $6,340 $6,660 2,769 4,393 4,617 $1,251 $1,947 $2,843 $ 306 $ 306 $ 306 402 1,258 1,454 708 1,564 1,760 $ 543 $ 383 $ 283 68 157 87 109 97 74 $ 318 $187 $112 Required: Calculate Tia's Trampolines Inc.'s profitability ratios for 2023. Also Identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the Industry average. (Round the final answer to 2 decimal places. Input all positive values.) Industry Average F/U 1. Profit margin 2 Gross profit ratio 2023 7.91 % 31.12 % 14 % Unfavourable 18 % Favourable % 3. Return on total assets 4 Return on common shareholders' equity 5. Book value per common share $ 2.32 $ 61 6. Book value per preferred share 7. Earnings per share 20% Unfavourable 32.7 % Favourable Unfavourable 8.63 $ 15.00 Unfavourable $ 1.79 Unfavourable

Refer the following table. Cash Tia's Trampolines Inc. Comparative Balance Sheet Information November 30 (millions of $) Accounts receivable (net) Plant and equipment (net) Accounts payable Long-term notes payable Preferred shares 2023 $ 205 280 2022 $ 593 2021 $ 618 317 136 1,446 1,530 1,826 60 136 224 965 1,285 1,445 165 165 165 645 645 645 96 209 101 Connon shares Retained earnings The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year. Net sales Tia's Trampolines Inc. Income Statement For Year Ended November 30 (millions of $) Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Interest expense Income tax expense Profit 2023 2022 2021 $4,020 $6,340 $6,660 2,769 4,393 4,617 $1,251 $1,947 $2,843 $ 306 $ 306 $ 306 402 1,258 1,454 708 1,564 1,760 $ 543 $ 383 $ 283 68 157 87 109 97 74 $ 318 $187 $112 Required: Calculate Tia's Trampolines Inc.'s profitability ratios for 2023. Also Identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the Industry average. (Round the final answer to 2 decimal places. Input all positive values.) Industry Average F/U 1. Profit margin 2 Gross profit ratio 2023 7.91 % 31.12 % 14 % Unfavourable 18 % Favourable % 3. Return on total assets 4 Return on common shareholders' equity 5. Book value per common share $ 2.32 $ 61 6. Book value per preferred share 7. Earnings per share 20% Unfavourable 32.7 % Favourable Unfavourable 8.63 $ 15.00 Unfavourable $ 1.79 Unfavourable

FINANCIAL ACCOUNTING
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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Refer the following table. Cash Tia's Trampolines Inc. Comparative Balance Sheet Information November 30 (millions of $) Accounts receivable (net) Plant and equipment (net) Accounts payable Long-term notes payable Preferred shares 2023 $ 205 280 2022 $ 593 2021 $ 618 317 136 1,446 1,530 1,826 60 136 224 965 1,285 1,445 165 165 165 645 645 645 96 209 101 Connon shares Retained earnings The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year. Net sales Tia's Trampolines Inc. Income Statement For Year Ended November 30 (millions of $) Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Interest expense Income tax expense Profit 2023 2022 2021 $4,020 $6,340 $6,660 2,769 4,393 4,617 $1,251 $1,947 $2,843 $ 306 $ 306 $ 306 402 1,258 1,454 708 1,564 1,760 $ 543 $ 383 $ 283 68 157 87 109 97 74 $ 318 $187 $112 Required: Calculate Tia's Trampolines Inc.'s profitability ratios for 2023. Also Identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the Industry average. (Round the final answer to 2 decimal places. Input all positive values.) Industry Average F/U 1. Profit margin 2 Gross profit ratio 2023 7.91 % 31.12 % 14 % Unfavourable 18 % Favourable % 3. Return on total assets 4 Return on common shareholders' equity 5. Book value per common share $ 2.32 $ 61 6. Book value per preferred share 7. Earnings per share 20% Unfavourable 32.7 % Favourable Unfavourable 8.63 $ 15.00 Unfavourable $ 1.79 Unfavourable
Transcribed Image Text:Refer the following table. Cash Tia's Trampolines Inc. Comparative Balance Sheet Information November 30 (millions of $) Accounts receivable (net) Plant and equipment (net) Accounts payable Long-term notes payable Preferred shares 2023 $ 205 280 2022 $ 593 2021 $ 618 317 136 1,446 1,530 1,826 60 136 224 965 1,285 1,445 165 165 165 645 645 645 96 209 101 Connon shares Retained earnings The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year. Net sales Tia's Trampolines Inc. Income Statement For Year Ended November 30 (millions of $) Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Interest expense Income tax expense Profit 2023 2022 2021 $4,020 $6,340 $6,660 2,769 4,393 4,617 $1,251 $1,947 $2,843 $ 306 $ 306 $ 306 402 1,258 1,454 708 1,564 1,760 $ 543 $ 383 $ 283 68 157 87 109 97 74 $ 318 $187 $112 Required: Calculate Tia's Trampolines Inc.'s profitability ratios for 2023. Also Identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the Industry average. (Round the final answer to 2 decimal places. Input all positive values.) Industry Average F/U 1. Profit margin 2 Gross profit ratio 2023 7.91 % 31.12 % 14 % Unfavourable 18 % Favourable % 3. Return on total assets 4 Return on common shareholders' equity 5. Book value per common share $ 2.32 $ 61 6. Book value per preferred share 7. Earnings per share 20% Unfavourable 32.7 % Favourable Unfavourable 8.63 $ 15.00 Unfavourable $ 1.79 Unfavourable
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