RevenuesExpensesCost of goods soldSelling expensesGeneral and administrativeexpensesInterest expenseIncome tax expenseTotal expensesNet incomeAssetsCurrent assetsCashMarketable securitiesAccounts receivableInventoriesPrepaid expensesTotal current assetsPlant and equipment (net)IntangiblesTotal assetsLiabilities and Stockholders'EquityLiabilitiesCurrent liabilitiesAccounts payableOtherTotal current liabilitiesBonds payableTotal liabilitiesYear 2$219,100Total liabilities andstockholders' equity124, 40019,70010,0001,70020, 100175,900$ 43,200$ 38,50015,80054,30064,300118,600Stockholders' equityCommon stock (43,000 shares)Retained earningsTotal stockholders' equity 159,000$277,600$ 4,800 $ 7,2002,8002,80036,60031, 100101,60094, 1003,9002,900149,700138, 100106,400 106,40021,5000$277,600$244,500Year 1$182,800114,90044, 100101, 10017,7009,0001,70016,900146,400$36,400$ 34,20016, 20050,40065,300115,700114,90013,900128,800$244,500RequiredCalculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not useaverages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and,therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.)h. Working capital.i. Current ratio. (Round your answers to 2 decimal places.)j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.)k. Accounts receivable turnover. (Round your answers to 2 decimal places.)I. Inventory turnover. (Round your answers to 2 decimal places.)m. Debt-to-equity ratio. (Round your answers to 2 decimal places.)n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.)a. Net marginb. Return on investmentc. Return on equityd. Earnings per sharee.f.g.غانعنh.Price-earnings ratioBook value per share of commonstockTimes interest earnedWorking capitalCurrent ratioQuick (acid-test) ratio|i.lj.k. Accounts receivable turnoverI.Inventory turnoverm. Debt-to-equity ration. Debt-to-assets ratio$Year 219.91 %14.89 %28.26 %0.857.11 times$ 3.00timestimestimes%$$Year 119.72 %15.56 %30.02 %1.004.96 times3.70timestimestimes%

"Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To get remaining sub-parts solved, please repost the complete question and mention the sub-parts to be solved." The ratio analysis helps to analyze the various financial statements of the business. The working capital and current ratio are the liquidity ratios of the company.Part g. Time interest earned ratio = Earnings before interest and tax/ Interest expense Year 2 Year 1 Net income (a) $43,200 $36,400 Interest expense (b) $1,700 1,700 Income tax expense (c) $20,100 $16,900 Earnings before interest and tax (a + b + c) $65,000 $55,000 Time interest earned ratio (EBIT / Interest expense) 65,000/1,700 = 38.24 times 55,000/1,700 = 32.35 times Part h. Working capital = Current assets – Current liabilities Year 2 Year 1 Current assets (a) $149,700 $138,100 Current liabilities (b) $54,300 $50,400 Working capital (a-b) $95,400 $87,700 Part i. Current ratio = Current assets / Current liabilities Year 2 Year 1 Current assets (a) $149,700 $138,100 Current liabilities (b) $54,300 $50,400 Current ratio (a ÷ b) 149,700/54,300 = 2.76 to 1 138,100/50,400 = 2.74 to 1

Business

Accounting

Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Year 2 Year 1 $219,100 $182,800 Total liabilities and stockholders' equity 124,400 19,700 10,000 1,700 20, 100 175,900 $43,200 $ 4,800 $ 7,200 2,800 2,800 31,100 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 101, 100 17,700 9,000 1,700 16,900 146,400 $ 36,400 54,300 64,300 118,600 Stockholders' equity Common stock (43,000 shares) 114,900 Retained earnings 44,100 Total stockholders' equity 159,000 $ 38,500 $ 34,200 15,800 16, 200 94, 100 2,900 138, 100 106,400 0 $244,500 50,400 65,300 115,700 114,900 13,900 128,800 $277,600 $244,500

Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Year 2 Year 1 $219,100 $182,800 Total liabilities and stockholders' equity 124,400 19,700 10,000 1,700 20, 100 175,900 $43,200 $ 4,800 $ 7,200 2,800 2,800 31,100 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 101, 100 17,700 9,000 1,700 16,900 146,400 $ 36,400 54,300 64,300 118,600 Stockholders' equity Common stock (43,000 shares) 114,900 Retained earnings 44,100 Total stockholders' equity 159,000 $ 38,500 $ 34,200 15,800 16, 200 94, 100 2,900 138, 100 106,400 0 $244,500 50,400 65,300 115,700 114,900 13,900 128,800 $277,600 $244,500

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

Dec. 31, 2020 Dec. 31, 2019 Assets Current assets: Cash and cash equivalents $248,005 $419,465 Accounts receivable 38,283 34,839 Inventory 15.043 15,332 Prepaid expenses and other current assets 39,965 34,795 Income tax receivable 58,152 16,488 Investments 415,199 338,592 Total current assets 814.647 859,511 Property, plant, & equipment, net 1,217.220 1,106,984 Long-term investments 622,939 496.106 Other assets 70,260 64,716 Total assets $2,725,066 $2,527,317 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $85,709 $69,613 Accrued payroll and benefits 64,958 73,894 Accrued liabilities 129,275 102,203 Total current liabilities 279,942 245,710 Deferred liabilities 284.267 240,975 Other liabilities 32.883 28,263 Total liabilities 597,092 514,948 Shareholders' equity: Common stock 358 354 Additional paid-in capital 954,988 861.843 Retained earnings 1,172.628 1,150,172 Total shareholders' equity 2,127,974 2,012.369 Total liabilities and shareholders' equity…
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Assets Cash Accounts receivable Inventory: Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped). Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 122,000 208,000 $3,885,000 3,341,100 543,900 330,000 $ 213,900 Beginning Balance Ending Balance $ 134,000 $ 137,000 472,000 337,000 571,000 480,000 788,000 781,000 402,000 432,000 248,000 253,000 $2,480,000 $2,555,000 $ 379,000 $ 336,000 987,000 987,000 1,114,000 1,232,000 $2,480,000 $2,555,000 The company paid dividends of $95,900 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an Investment in the stock of another company. The company's minimum required rate of…
Vishnu
Hw.24.
Based on the above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable and inventory from 2022 to 2024. (Round answers to 1 decimal place, eg 13.5% or 13.5.) 2023 Sales Cost of goods sold Gross margin Other expenses Income taxes Net income Current ratio Quick ratio A/R turnover Average collection period Inventory turnover Days to sell inventory Debt to equity Return on assets 2022 Return on equity % 2022 % % 2022 :1 :1 times days times days 56 2023 % % % 2023 times days times days 2024 Based on the above information, analyze the company's use of leverage from 2022 to 2024. (Round answers to 1 decimal place, eg 15.1%) % 2024 % % % 2024
What's the total asset turnover ratio of this company? Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's equity Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income 1.41 2.33 O 4.45 1.11 8,000,000 (2,075,000) $600,000 900,000 1,500,000 75,000 $3,075,000 $5,925.000 $9,000,000 $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 $10,000,000 (3,000,000) (2,000,000) (250,000) (200,000) 4,550,000 (1,820,000) $2,730,000
Assets Line Item Description Amount Cash and short-term investments $42,572 Accounts receivable (net) 33,774 Inventory 37,691 Property, plant, and equipment 215,705 Total assets $329,742 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $68,960 Long-term liabilities 98,919 Common stock, $10 par 64,740 Retained earnings 97,123 Total liabilities and stockholders’ equity $329,742 Income Statement Line Item Description Amount Sales $91,805 Cost of goods sold (41,312) Gross profit $50,493 Operating expenses (28,002) Net income $22,491 Number of shares of common stock 6,474 Market price of common stock $28 What is the current ratio?
4
BALANCE SHEET INCOME STATEMENT ($ in millions) ($ in millions) ASSETS Cash & Marketable Securities LIABILITIES Revenue Cost Of Goods Sold 28,681. 10 Accounts Payable Salaries Payable 449.90 1,611.20 20,768.80 Accounts Receivable 954.80 225.20 Gross Profit 7.912.30 Inventories 3,645.20 Other Current Liabilities 1,118.80 Operating Expenses: Selling, General & Admin. Depreciation Operating income Other Current Assets Total Current Assets 116.60 5,166.50 Total Current Liabilities 2,955.20 5,980.80 Other Liabilities 693.40 307.30 1,688.90 1,129.70 2,348.40 (575.60) Machinery & Equipment Land 1,624.20 Total Liabilities 3,648.60 Buildings Depreciation Property, Plant & Equip. - Net Other Long Term Assets Total Long-Term Assets Interest SHAREHOLDER'S EQUITY Other Expense (Income) (13.10) 4,591.40 120.90 828.50 5.401.70 1,637.30 618.10 1,019.20 Common Stock Income Before Taxes Retained Earnings Total Shareholder's Equity Income Taxes 4,712.30 6,230.20 Net Income Total Assets 9,878.80 Total…
Financial Statements Prepare the Financial Statements for the fiscal year ended December 31, 2021 for MaBak Inc. Inc. Don't forget the statement dates and dollar signs. Complete the Horizontal and Vertical analysis. Round answers to the whole percent. Account Name Accounts Payable Accounts Receivable (net) Accrued Liabilities Administration Expense Bonds Payable Car (net) Cash Cost of Goods Sold Current Maturities of Long Term Debt Equipment (Net) Income Tax Expense Inventory Amount Account Name Investments - Long Term Land- not in use, to be sold in 5 Marketable Securities $ 42,000 30,000 3,000 30,000 Net Sales 20,000 Notes Payable - Long 32,000 Notes Receivable 50,000 20,000 Other Income Other Expense (interest) 12,250 Selling Expense 12,000 Supplies 4,400 Taxes Payable 40,000 Unearned Sales Revenue 12,000 25,000 5,000 135,000 13,000 2,000 7,600 4,000 44,000 7,500 17,750 13,000
K. Jackson Corporation Assets Cash Accounts receivable Inventory Net fixed assets Total assets Liabilities and owners' equity. Accounts payable ST Notes payable Long-term debt Owners' Equity Total liabilities and owner's equity Balance Sheet $250,000 450.000 500,000 2.100,000 $3,300.000 $100.000 450.000 1,050,000 1,700.000 $3,300,000 Income Statement Sales (all credit) Cost of goods sold Operating expense Interest expense Income taxes Net income $8,000,000 (4.000.000) (2,900,000) (150,000) (380,000) $570,000 Based on the information for K. Jackson Corporation, the current and acid-test ratios are, respectively. OA2.37 and 1.39. OB2 37 and 1.27 OC2 18 and 1.39 OD.2 18 and 1.27 OE None of the above.
Give answer with explanation