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

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