Required:1. Compute the gross profit percentage in the current and previous years. Are the current-year results better, or worse, than those forthe previous year?2. Compute the net profit margin for the current and previous years. Are the current-year results better, or worse, than those for theprevious year?3. Compute the earnings per share for the current and previous years. Are the current-year results better, or worse, than those for theprevious year?4. Stockholders' equity totaled $102,000 at the beginning of the previous year. Compute the return on equity (ROE) ratios for thecurrent and previous years. Are the current-year results better, or worse, than those for the previous year?5. Net property and equipment totaled $112,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for thecurrent and previous years. Are the current-year results better, or worse, than those for the previous year?6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion ofthe company's asset growth?7. Compute the times interest earned ratios for the current and previous years. Are the current-year results better, or worse, than thosefor the previous year?8. After Sedona Corporation released its current year's financial statements, the company's stock was trading at $20. After the releaseof its previous year's financial statements, the company's stock price was $17 per share. Compute the P/E ratios for both years. Doesit appear that investors have become more (or less) optimistic about Sedona's future success?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Required 5Required 6Required 7Required 81-a. Compute the gross profit percentage in the current and previous years. (Round percentage values to 1 decimal place.)1-b. Are the current-year results better, or worse, than those for the previous year?1-a. Current Year%1-a. Previous Year%1-b. Current year gross profit percentage?< Required 1Required 2 > Sedona Corporation declared and paid a cash dividend of $6,800 in the current year. Its comparative financial statements, prepared atDecember 31, reported the following summarized information:Current Year Previous YearIncome Statement$ 120,00056,00064,00038,0004,20021,8006,540$ 15,260$ 107,00052,00055,00034,6004,20016,2004,860Sales RevenueCost of Goods SoldGross ProfitOperating ExpensesInterest ExpenseIncome before Income Tax ExpenseIncome Tax Expense (30%)Net Income$ 11,340Balance SheetCash$ 72,11019,00027,00097,000$ 215,110$ 44,0001,05042,00087,05091,20036,860Accounts Receivable, NetInventoryProperty and Equipment, Net$ 36,00014,00040,000107,000$ 197,000$ 34,80060042,00077,40091,20028,400Total AssetsAccounts PayableIncome Tax PayableNotes Payable (long-term)Total LiabilitiesCommon Stock (par $10)Retained EarningsTotal Liabilities and Stockholders' Equity$ 215,110$ 197,000

*As per bartleby guidelines, in case of interlinked question answer first three only Calculation…

Required: 1. Compute the gross profit percentage in the current and previous years. Are the current-year results better, or worse, than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current-year results better, or worse, than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current-year results better, or worse, than those for the previous year?

Required: 1. Compute the gross profit percentage in the current and previous years. Are the current-year results better, or worse, than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current-year results better, or worse, than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current-year results better, or worse, than those for the previous year?

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

For each ratio listed, identify whether the change in ratio value from the Prior Year to the Current Year is usually regarded as favorable or unfavorable. Ratio 1. Profit margin 2. Debt ratio 3. Gross margin 4. Acid-test ratio 5. Accounts receivable turnover 6. Basic earnings per share 7. Inventory turnover 8. Dividend yield Current Year Prior Year Change 9% 8% 47 % 42 % 34 % 46 % 1.00 1.15 5.5 6.7 $ 1.25 $ 1.10 3.6 3.4 2.0 % 1.2 %
How do you find the gross profit as a percent of sales and income from operations as a percent of sales?
C
2 Tiger Audio declared and paid a cash dividend of $7,925 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous Income Statement $342,000 $281,000 175,650 166,350 63,600 6,400 96,350 28,905 Sales Revenue Cost of Goods Sold 159,000 122,000 52,930 5,670 63,400 19,020 Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income $ 67,445 $ 44,380 Balance Sheet $ 72,520 32,900 49,000 151,000 $305,420 $ 45, 200 28,000 46,000 138, 200 Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets $257,400 $ 39,000 4,800 101,900 145,700 39,400 120,320 $ 37,000 4,000 116, 200 157, 200 39,400 60,800 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $1) Retained Earnings Total Liabilities and Stockholders' Equity $305,420 $257,400
In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) x = profit -100 0.01 f(x) = probability -200 0.04 0 100 0.26 200 0.54 300 0.05 400 0.02 10 On average, profit (loss) amounts deviate from the expected profit by ______ thousand. a $114.77 thousand b $112.52 thousand c $110.31 thousand d $108.15 thousand
Times interest earned is a measure of the a. gross profit compared to annual interest payments b. operational earnings of the firm (EBIT) compared to annual interest payments c. net earnings after taxes compared annual interest payments d. net earnings before taxes compared to annual interest payments
Recording of next year's sales as sales of the current year will Group of answer choices a.overstate net income of next year b.not affect retained earnings at the end of next year c.understate retained earnings at the end of the current year d.understate net income of the current year
27-A prepare the following: GROSS PROFIT RATIO PROFIT MARGIN RETURN ON ASSETS EARNINGS PER SHARE CURRENT RATIO ACID TEST RATIO DEBT RATIO
(39) The times - interest - earned ratio is calculated by dividing operating incomes by operating expenses. True or False
You've collected the following information about Groot, Inc.: Profit margin Total asset turnover Total debt ratio Payout ratio = 4.44% = 3.50 = .25 = 29% a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROA % 15.54 %
PROBLEM 11-17 Return on Investment (ROI) and Residual Income LO11-1, LO11-2 Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 620,000 Investment in Buisson, S.A. 280,000 170,000 250,000 Land (undeveloped) 180,000 Total assets $2,020,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable. $ 360,000 $ 310,000 Long-term debt Stockholders' equity 1,500,000 1,500,000 160,000 290,000 Total liabilities and stockholders' equity $2,020,000 $2,100,000 Joel de Paris, Inc. Income Statement Sales $4,050,000 Operating expenses Net operating income 3,645,000 405,000 Interest and taxes: Interest expense $150,000 Таx expense 110,000 260,000 Net income $ 145,000 The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an…
How is the DuPont Model for ROE calculated? What are Trends in regards to sales and revenue?