## MARNI COMPANY### Income Statement#### For the year ended December 31| Item | Amount ($) | |----------------------------------------|---------------|| Sales (all on credit) | 2,000,000 || Cost of goods sold | 1,750,000 || **Gross profit** | 250,000 || Sales and administrative expenses | 30,000 || Fixed lease expenses | 10,000 || Depreciation | 60,000 || **Operating profit** | 150,000 || Interest expense | 25,000 || **Profit before taxes** | 125,000 || Taxes (40%) | 50,000 || **Net income** | 75,000 |Refer to the tables above. Fixed charge coverage for Marni Company is _____. # Marni Company Financial ReportsBelow are the financial statements for Marni Company as of December 31. The reports include a Balance Sheet and an Income Statement, providing a detailed view of the company's financial position and performance.## Marni Company Balance Sheet**As of December 31**### Assets1. **Cash**: $50,0002. **Accounts Receivable**: $100,0003. **Inventory**: $200,0004. **Net Plant and Equipment**: $650,000 **Total Assets**: $1,000,000### Liabilities and Stockholders' Equity1. **Accounts Payable**: $100,0002. **Accrued Expenses**: $90,0003. **Long-term Debt**: $250,0004. **Common Stock**: $100,0005. **Paid-in Capital**: $50,0006. **Retained Earnings**: $410,000 **Total Liabilities and Stockholders' Equity**: $1,000,000---## Marni Company Income Statement**For the Year Ended December 31**### Revenue1. **Sales (all on credit)**: $2,000,000### Costs and Expenses1. **Cost of Goods Sold**: $1,750,000 **Gross Profit**: $250,0002. **Sales and Administrative Expenses**: $30,0003. **Fixed Lease Expenses**: $10,000The balance sheet above illustrates Marni Company's financial position, showing that the total assets are equal to the total liabilities and stockholders' equity, confirming the accounting equation (Assets = Liabilities + Equity).The income statement shows the profitability of the company, with a gross profit of $250,000 after subtracting the cost of goods sold from the total sales, and additional expenses related to sales and administrative activities and fixed lease costs.

fixed charge coverage ratio formula: fixed charge coverage ratio = (EBIT + lease) / ( interest +…

Retained earnings Total liabilities and stockholders' equity 410,000 $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses $2,000,000 1,750,000 $250,000 30,000 10,000 60,000 $ 150,000 25,000 $ 125,000 50,000 $4 Fixed lease expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (40%) Net income 75,000 Refer to the tables above. Fixed charge coverage for Marni Company is

Retained earnings Total liabilities and stockholders' equity 410,000 $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses $2,000,000 1,750,000 $250,000 30,000 10,000 60,000 $ 150,000 25,000 $ 125,000 50,000 $4 Fixed lease expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (40%) Net income 75,000 Refer to the tables above. Fixed charge coverage for Marni Company is

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Comparative Income StatementsConsider the following income statement data from the Ross Company: Current Year Previous Year Sales revenue $525,000 $450,000 Cost of goods sold 336,000 279,000 Selling expenses 105,000 99,000 Administrative expenses 60,000 54,000 Income tax expense 7,800 5,400 Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANYComparative Income Statements Current Year Previous Year Increase(Decrease) PercentChange Sales Revenue Answer Answer Answer Answer Cost of Goods Sold Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Selling Expenses Answer Answer Answer Answer Administrative Expenses Answer Answer Answer Answer Total Answer Answer Answer Answer Income before Income Taxes Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer…
QUESTION: JESTER CORPORATIONS'S MOST RECENT INCOME STATEMENT APPEARS BELOW: SALES (ALL ON ACCOUNT) $610,000 COST OF GOODS SOLD $340,000 GROSS MARGIN $270,000 SELLING AND ADMINISTRATIVE $160,000 EXPENSE NET OPERATING INCOME $110,000 INTEREST EXPENSE $20,000 NET INCOME BEFORE TAXES $90,000 INCOME TAXES (30%) $27,000 NET INCOME $63,000 THE BEGINNING BALANCE OF TOTAL ASSETS WAS $360,000 AND THE ENDING BALANCE WAS $320,000. WHAT IS THE PERCENTAGE OF RETURN ON TOTAL ASSETS?
Sales Revenue Less: Cost of Goods Sold Gross Profits Less: Operating Expenses Operating Profits Less: Interest Expense Net Profits Before Taxes Less: Taxes (40%) Net Profits After Taxes Assets Cash Income Statement Pulp, Paper and Paperboard, Inc. For the Year Ended December 31, 2019 Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and stockholders' equity Current liabilities Balance Sheet Pulp, Paper and Paperboard, Inc. December 31, 2019 Accounts payable Notes payable Accruals Total current liabilities Long-term debts Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Calculate the following: NP, GP $2,080,976 1,701,000 $ 379,976 273,846 $ 106,130 19,296 S 86,834 34,810 S 52,024 Current Ratio - Quick Ratio Receivable days - Payable days $ 95,000 237,000 243.000 $ 575,000 500,000 75.000 $ 425,000…
Question: Vertical Analysis of the Income statement Company A Company B Net sales 2,300,000 300,000 Cost of goods sold 1,100,000 200,000 Gross profit 1,200,000 100,000 Operating Expenses: Administrative expenses 120,000 20,000 Marketing expenses 220,000 30,000 Research and Development 500,000 10,000 Total Operating expenses 840,000 60,000 Interest expense 200,000 10,000 Net income 160,000 30,000 Required: Prepare a vertical analysis of these two companies. Compare and contrast the financial situation of these two companies assuming that they are in the same industry. Discuss fully.
SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,123,000 Cost of goods sold 1,040,270 Gross profit 1,082,730 Operating expenses Salaries expense $ 290,851 Depreciation expense 50,952 Rent expense 57,321 Amortization expenses—Patents 6,369 Utilities expense 23,353 428,846 653,884 Gain on sale of equipment 8,492 Net income $ 662,376 Accounts receivable $ 27,750 increase Accounts payable $ 15,725 decrease Inventory 24,000 increase Salaries payable 5,050 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Net sales Cost of goods sold Gross margin Operating expenses Net income Cash Accounts receivable, net Merchandise inventory Plant assets, net Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity Goliath Company Comparative Income Statements For Years Ended December 31 Current Year One Year Ago $ 206,000 $ 184,000 108,000 121,000 85,000 45,000 $ 40,000 76,000 40,000 $ 36,000 Goliath Company Comparative Balance Sheets For Years Ended December 31 Current Year $ 153,000 58,000 30,000 170,000 $ 411,000 $ 36,000 190,000 60,000 125,000 $ 411,000 Required: Using the above information, compute the following: Two Years Ago $ 160,000 92,000 68,000 36,000 $ 32,000 One Year Ago $ 158,000 52,000 17,000 170,000 $ 397,000 $ 32,000 220,000 60,000 85,000 $ 397,000 Three Years Ago $ 114,000 78,000 36,000 19,000 $ 17,000 Two Years Ago $ 129,000 45,000 23,000 140,000 $ 337,000 $ 28,000 200,000 60,000 49,000 $ 337,000 Three Years Ago $ 156,000…
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The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $444,100.00 2 Cost of merchandise sold 155,600.00 3 Gross profit $288,500.00 4 Operating expenses: 5 Depreciation expense $37,510.00 6 Other operating expenses 114,580.00 7 Total operating expenses 152,090.00 8 Income before income tax $136,410.00 9 Income tax expense 40,010.00 10 Net income $96,400.00 The balances of selected accounts at the beginning and the end of the current year are as follows: End Beginning of Year of Year Accounts receivable (net) $37,180 $31,240 Inventories 91,040 79,880 Prepaid expenses 14,990 15,950 Accounts payable (merchandise creditors) 68,570 63,000 Accrued expenses payable (operating expenses) 19,010 20,840 Income tax payable 3,470 3,470 Prepare the Cash Flows from Operating…
Income Statement Balance Sheet Sales $ 29,300 Assets $ 22,500 Debt $ 6,000 Costs 22,870 Equity 16,500 Net income $ 6,430 Total $ 22,500 Total $ 22,500 The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) Pro forma income statement Pro forma balance sheet Sales Assets Debt Costs Equity Net income Total Total What is the external financing needed?
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) Net income Dividends Addition to retained earnings $2,600 5,200 $45,000 35,000 $10,000 2,200 $ 7,800 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "O" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.)
The most recent financial statements for Anderson Company are shown here: Sales Costs Income Statement Taxable income Taxes (25%) Net income $75,000 26,600 $ 48,400 Maximum increase in sales 12,100 $36,300 Current assets Fixed assets Total Balance Sheet $ 31,500 127,500 $ 159,000 Long-term debt Equity Total $ 68,000 91,000 $ 159,000 Assets and costs are proportional to sales. Long-term debt and equity are not. The company maintains a constant 35 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Large Company $ Net sales 379,420 163,100 216,320 Cost of sales Gross profit Selling, general, and administrative $ 146,610 expenses Operating income $ 69,720 Net income 41,610 50,480 Cash and cash equivalents Net receivables 17,400 Inventories 223,430 315,160 Total current assets Property and equipment 81,880 Other assets 66,040 Total assets 463,090 29,540 Accounts payable Stockholder equity 261,130 What is the value of C2C in weeks? (Choose the closest) 31.47 -12.81 -5.82 64.20 4.

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