## 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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Net sales Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income Net sales Cost of goods sold Gross profit 2022 Selling expenses $754,000 465,218 122,148 61,828 33,176 71,630 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round answers to 1 decimal place, e.g. 48.5%.) BRAMBLE CORPORATION Condensed Income Statements For the Years Ended December 31 2022 Amount $754,000 465,218 288,782 2021 122.148 $605,000 392,645 69,575 54,450 21,780 66,550 Percent 100 % 65 % Amount % $605,000 392,645 % 212,355.0 69,575 2021 Percent 100 % % % %
Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for the current year follow. Summary Income Statement Data Sales $10, 500, 600 Cost of goods sold 6, 050,000 Selling expenses 685,000 Administrative expenses 945,000 Interest expense 783, 500 Income tax expense 427,791 8,891,291 Net income $1,609,309 Summary Balance Sheet Data Cash $84, 700 Total liabilities $749,700 Noncash assets 885,500 Stockholders' equity 220, 500 Total assets $970, 200 Total liabilities and equity $970, 200 Round answers to one decimal place. a. Compute the ratio of times - interest - earned. Answer times b. Compute the debt-to-equity ratio. Answer
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $541,800 $430,000 Cost of goods sold 458,800 370,000 Gross profit $83,000 $60,000 Selling expenses $24,360 $21,000 Administrative expenses 21,080 17,000 Total operating expenses $45,440 $38,000 Income before income tax $37,560 $22,000 Income tax expenses 15,000 8,800 Net income $22,560 $13,200 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $541,800 $430,000 % Cost of goods sold 458,800 370,000 Gross profit $83,000 $60,000 % Selling expenses $24,360 $21,000 % Administrative expenses 21,080 17,000 % Total operating expenses…
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $418,200 $340,000 Cost of goods sold 350,900 290,000 Gross profit $67,300 $50,000 Selling expenses $19,210 $17,000 Administrative expenses 16,940 14,000 Total operating expenses $36,150 $31,000 Income before income tax $31,150 $19,000 Income tax expenses 12,500 7,600 Net income $18,650 $11,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 CurrentyearAmount PreviousyearAmount Increase(Decrease)Amount Increase(Decrease)Percent Sales $418,200 $340,000 $fill in the blank…
Consolidated Statements of Earnings For the Years Ended December 31, (in thousands of dollars) Year 8 Sales $64,000 Cost of sales. 50,000 Gross profit 14,000 Operating expenses before interest and income taxes 8,000 Interest expense 1,780 Earnings before income taxes 4,220 Income tax expense 1,900 Net earnings $ 2,320 MORKSEN CORP. Consolidated Statements of Financial Position At December 31, (in thousands of dollars) Year 8 Year 7 Assets Current assets Cash $ 480 $ 380 740 10,880 Short-term investments Accounts receivable 740 8,400 Merchandise inventory 16,660 10,060 Total current assets 28,660 19,680 Property, plant, and equipment Land 4,000 4,000 Buildings and equipment 26,000 26,000 30,000 30,000 8,940 7,440 Less: Accumulated depreciation. Net property, plant, and equipment 21,060 22,560 Total assets $49,720 $42, 240 Liabilities and Shareholders' Equity Current Liabilities Bank loan $16,500 $11,400 Accounts payable 6,000 4,300 Other liabilities 1,640 1,600 Income tax payable 960…
Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 169,000 $ 1,300 $ 282,000 $ 44,000 Book value per share Earnings per share Cash flow per share $ 7,400 $5,000 21% $ 22,000 $ 21,000 $ 92,000 $ 37,000 $ 120,000 $ 6,000 $ 33,000 $ 64,000 During the year, Smashville, Incorporated, had 20,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. $ 7.75
Horizontal Analysis of Income StatementFor 20Y2, Macklin Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensedcomparative income statement:Macklin Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Y2 20Y1Sales $910,000 $700,000Cost of goods sold 441,000 350,000Gross profit $469,000 $350,000Selling expenses $139,150 $115,000Administrative expenses 99,450 85,000Total operating expenses $238,600 $200,000Income from operations $230,400 $150,000Other income 65,000 50,000Income before income tax $295,400 $200,000Income tax expense 65,000 50,000Net income $230,400 $150,000Required:1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round to one decimal place. Use theminus sign to indicate a decrease in the "Difference" columns.Macklin Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2…
Financial Ratios The financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) are shown. Jackson EnterprisesIncome StatementFor Year Ended December 31, 20-- Revenue from sales: Sales $170,000 Less: Sales returns and allowances 10,000 Net sales $160,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $7,700 Estimated returns inventory, January 1, 20-- 1,300 $9,000 Purchases $92,900 Less: Purchases returns and allowances $1,862 Purchases discounts 1,828 3,690 Net purchases $89,210 Add: Freight-in 961 Cost of goods purchased 90,171 Goods available for sale $99,171 Less: Merchandise inventory, Dec. 31, 20-- $8,300 Estimated returns inventory, Dec. 31, 20-- 1,200 9,500 Cost of goods sold 89,671 Gross profit…
Problem: Remesh Corporation prepared the following income statement and statement of retained earnings for the year ended December 31, 2021. Remesh Corporation December 31, 2021 Expense and Profit Statement Dollars in thousands Sales (net) $206,000 Less: Selling Expenses (20,600) Net Sales $185,400 Add: Interest Revenue 2,400 Add: Gain on sale of equipment 3,600 Gross Sales Revenue $191,400 Less: Cost of operations: Cost of Goods Sold $126,100 Correction of overstatement in last years income because of error $5,500 (net of tax credit) $3850 Dividend cost ($0.50 per share for 8k common shares) $4000 Unusual loss due to a hurricane, $6,400 (net of tax credit) $1,920 ($135,870) Taxable Revenues $55,530 Less: Income tax on income from continuing operations $16,659 Net income $38871 Miscellaneous Deductions Loss from operations of…
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $536,800 $440,000 Cost of merchandise sold 444,000 370,000 Gross profit $92,800 $70,000 Selling expenses $25,760 $23,000 Administrative expenses 22,800 19,000 Total operating expenses $48,560 $42,000 Income before income tax expense $44,240 $28,000 Income tax expenses 17,700 11,200 Net income $26,540 S16,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Increase Increase (Decrease) Previous year year (Decrease)
This Year’s Actual Results Next Year’s Initial Forecast Net sales $17,000,000 $20,060,000 Cost of goods sold 13,600,000 16,048,000 Gross profit $3,400,000 $4,012,000 Fixed operating costs except depreciation 850,000 850,000 Depreciation 340,000 401,200 Earnings before interest and taxes $2,210,000 $2,607,800 Interest 340,000 340,000 Earnings before taxes $1,870,000 $2,267,800 Taxes 748,000 907,120 Net income $1,122,000 1,360,680 Common dividends 605,880 605,880 Addition to retained earnings $516,120 $754,800 Earnings per share $0.22 $0.27 Dividends per share $0.12 $0.12 Number of common shares (millions) 5.00 5.00 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The forecasted increase in net sales is 18.00%. No additional external financing will be required. The assigned depreciation method has changed. The facility is not currently operating at full capacity.…
Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 1 Current Year Previous Year 2 Sales $1,596,000.00 $1,400,000.00 3 Cost of goods sold 1,316,700.00 1,197,000.00 4 Gross profit $279,300.00 $203,000.00 5 Selling expenses $76,950.00 $67,500.00 6 Administrative expenses 55,000.00 50,000.00 7 Total operating expenses $131,950.00 $117,500.00 8 Income before income tax $147,350.00 $85,500.00 9 Income tax expense 11,060.00 7,000.00 10 Net income $136,290.00 $78,500.00 A. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. B. What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place.

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