Refer to the following selected financial information from Texas Electronics. Compute the company's current ratio for Year 2. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Year 2 Year 1 $ 38,000 $32,750 95,000 62,500 88,000 82,000 123,500 127,500 12,600 390,500 110,900 110,300 713,500 678,500 392,500 377,500 10, 200 340, 500

Refer to the following selected financial information from Texas Electronics. Compute the company's current ratio for Year 2. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Year 2 Year 1 $ 38,000 $32,750 95,000 62,500 88,000 82,000 123,500 127,500 12,600 390,500 110,900 110,300 713,500 678,500 392,500 377,500 10, 200 340, 500

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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Income statements for Fanning Company for Year 3 and Year 4 follow. FANNING COMPANY Income Statements. Sales Cost of goods sold. Selling expenses Administrative expenses. Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $200,200 143,800 20,500 12,500 3,500 $180, 300 19,900 5,900 $14,000 Year 3 $180, 200 121,800 18,500 14,500 5,500 $160,300 19,900 3,100 $16,800 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
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hi, can you help me with Calculatingthe following ratios for Year 2: (a) profit margin ratio (b) gross margin ratio ( c) times interest earned. Silverlight Company Income Statements For Years Ended December 31, Year 2 Year 1 Net sales $ 720,000 $ 607,500 Cost of goods sold 450,000 382, 700 Gross profit $270,000 $224,800 Operating expense 168, 500 134, 900 Income from operations $ 101,500 $ 89,900 Interest expense 22, 300 11,200 Income before taxes $ 79,200 $ 78,700 Income taxes 28,000 27,000 Net income $ 51,200 $ 51,700
Refer to the following selected financial information from Texas Electronics. Compute the company's accounts receivable turnover for Year 2. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Year 2 Year 1 $ 38,300 $ 33,050 98,000 64,000 89,500 83,500 125,000 129,000 12,900 10,500 392,000 342,000 109,400 111,800 715,000 680,000 394,000 379,000
Answer the following questions by using the following data taken from the financial statement of 2 companies: Company ABC Annual Sales ( on Credit ) $1,324,600 $936,720 Company DEF Annual Sales ( on Credit ) Cost of Goods Sold $2,748,308 Cost of Goods Sold $1,709,406 Average Inventory Average Accounts Receivable Average Accounts Payable $225,025 $346,007 $175,456 Average Inventory Average Accounts Receivable Average Accounts Payable $356,394 $300,000 $150,000 How much is the approximate Days Payable Outstanding of Company DEF? 32 1. 95 40 68 How much is the approximate Days Inventory Outstanding for Company АВС? * 88 90 2. 95 76 How much is the approximate Days Sales Outstanding for Company DEF? * 76 95 3. 87 40 How much is the approximate Days Inventory Outstanding for Company DEF? * 76 4. 95 90 88 How much is the approximate Days Payable Outstanding of Company АВС? * 95 5. 68 40 32 How much is the approximate Days Sales Outstanding for Company ABC? * 87 6. 95 76 40 How much is the…
PLEASE ANSWERED WITH IN THE FORMAT BY PROVIDING FORMULA IN DETAILS Income statements for Thornton Company for Year 3 and Year 4 follow. THORNTON COMPANY Income Statements Year 4 Year 3 Sales $200,900 $180,900 Cost of goods sold 142,300 120,300 Selling expenses 21,600 19,600 Administrative expenses 12,500 14,500 Interest expense 3,200 5,200 Total expenses $179,600 $159,600 Income before taxes 21,300 21,300 Income taxes expense 6,300 3,800 Net income $15,000 $17,500 Required Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. PLEASE PROVIDE ANSWER IN TEXT
Accounts Receivable and Inventory Ratios Bell Company had the following current assets at year-end: Cash $72,500 Short-term investments 123,500 Accounts receivable (net) 425,000 Inventory 500,000 Prepaid expenses 29,000 Current assets $1,150,000 The company had net sales for the year of $2,205,000 and cost of goods sold of $1,347,500.At the beginning of the year, Bell’s accounts receivable (net) were $352,000 and itsInventory was $429,000.a. What is the company’s accounts receivable turnover for the year? (Round to two decimal places.) Answer b. What is the company’s average collection period for the year? (Round to one decimal place.) Answer c. What is the company’s inventory turnover for the year? (Round to two decimal places.) Answer d. What is the company’s days’ sales in inventory for the year? (Round to one decimal place.) Answer
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You are asked to provided a comparative financial statement analysis of Star Corporation and Moon Stores Inc. for the the current year. Your junior accountant has collected the following data for you. Star Corp. Moon Stores Income Statement Net Sales 61,471 374,526 Cost of Goods Sold 41,895 286,515 Sell and Administrative expenses 16,200 70,847 Interest Expense Other income (expense) Income tax expense 647 1,798 1,896 4,273 1,776 $ 6,908 Net Income 2,849 $ 12,731 Balance Sheet Current Assets 18,906 47,585 Long-term Assets Total Assets 25,654 $ 44,560 115,929 163,514 Current Liabilities Long-term debt Total stockholders equity Total liabilities and equity 58,454 40,452 64,608 11,782 17,471 15,307 $ 44,560 $ 163,514 Beginning of the year balances Total assets 37,349 151,587 Total equity Current liabilities 15,633 61, 11,117 52,148 Total liabilities 21,716 90,014 Other data Average net accounts receivable Average inventory Net cash provided by operating activities 7,124 3,247 6,517 34,433…
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