SalesCost of goods soldother operating expensesInterest expenseIncome tax expenseTotal costs and expenses$755,000$ 620,000$445,450234,05011,3009,550$390,600148,80012,7008,925of 3700,350561,025$ 58,975Net income$ 54,650Earnings per share243.40243.67For both the Current Year and 1 Year Ago, compute the following ratios:okExercise 13-10 Part 2at(2) Total asset turnover.ncesTotal Asset TurnoverChoose Numerator:Choose Denominator:Total Asset Turnover%3DTotal asset turnover%DtimesCurrent Year:times%3D1 Year Ago:< Prev6 7of 8Next >......... Simon Company's year-end balance sheets follow.At December 31Current Yr1 Yr Ago 2 Yrs AgoAssets$ 31,60088,000112,50010,650281,000$523,750$ 36,250 $ 38,40062,00083,8009,350249,500$440,900 $ 379,900CashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net49,50052,5004,500235,000Total assetsLiabilities and EquityAccounts payableLong-term notes payable secured bymortgages on plant assetsCommon stock, $10 par valueRetained earnings$128,400$ 74,750 $ 50,80097,000160,500137,85098,250160,500107,40081,600160,50087,000Total liabilities and equity$523,750$440,900 $ 379,900cesThe company's income statements for the Current Year and 1 Year Ago, follow.1 Yr AgoFor Year Ended December 31SalesCurrent Yr$755,000$ 620,000Cost of goods soldother operating expensesInterest expense$445,450234,05011,3009,550$390,600148,80012,7008,925Income tax expenseTotal costs and expenses700,350561,025Net income$ 54,650$ 58,975< Prev6 7of 8Next >101

The asset turnover ratio relates the worth of a company's sales or revenues to the value of its…

Sales $755,000 $ 620,000 Cost of goods sold other operating expenses Interest expense $445,450 234,050 11,300 9,550 $390,600 148,800 12,700 8,925 Income tax expense Total costs and expenses 700,350 $ 54,650 561,025 Net income $ 58,975 Earnings per share 3.40 2$ 3.67 For both the Current Year and 1 Year Ago, compute the following ratios: rcise 13-10 Part 2 otal a ccot turnovar

Sales $755,000 $ 620,000 Cost of goods sold other operating expenses Interest expense $445,450 234,050 11,300 9,550 $390,600 148,800 12,700 8,925 Income tax expense Total costs and expenses 700,350 $ 54,650 561,025 Net income $ 58,975 Earnings per share 3.40 2$ 3.67 For both the Current Year and 1 Year Ago, compute the following ratios: rcise 13-10 Part 2 otal a ccot turnovar

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
The following information was taken from the accounts receivable records of Pina Colada Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $154,000 0.5% 31 – 60 days outstanding 63,200 2.5% 61 – 90 days outstanding 39,100 4.0% 91 – 120 days outstanding 21,600 6.5% Over 120 days outstanding 5,300 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,170 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,990 prior to…
Simon Company's year-end balance sheets follow, At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 30,847 85,864 112,410 9,639 278,899 $4 36,772 $ 37,181 60,602 82,558 9,090 257, 236 49,574 52,807 4,131 224,507 Total assets $ 517,659 $ 446,258 S 368, 200 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 131,475 73,909 $ 48,116 95,373 163, 500 127,311 83,813 163, 500 72,771 $ 446,258 $ 368,200 101,613 163, 500 107,236 Total liabilities and equity $ 517,659 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivab assets favorable or unfavorable?
The following information was taken from the accounts receivable records of Sarasota Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $160,000 0.5% 31 – 60 days outstanding 66,000 2.5% 61 – 90 days outstanding 40,200 4.0% 91 – 120 days outstanding 20,600 6.5% Over 120 days outstanding 5,600 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,200 prior to the adjustment (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,880 prior to the adjustment.
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 29,800 $ 52,676 69,608 7,901 216,273 Cash $ Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 73,888 91,962 8,459 236,656 30,737 40,577 42,778 3,348 189,960 Total assets $ 436,459 $ 376, 258 $ 307,400 Liabilities and Equity $ 106,505 64, 223 $ 40,577 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 83,695 68,615 162,500 35,708 $ 376, 258 $ 307,400 89,136 162,500 162,500 83,759 60,399 Total liabilities and equity $ 436,459 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?
The following data are taken from the financial statements of Cullumber Company. 2022 2021 Accounts receivable (net), end of year $ 587,000 $ 585,000 Net sales on account 4,927,000 3,921,000 Terms for all sales are 1/10, n/45 Compute for each year the accounts receivable turnover. At the end of 2020, accounts receivable was $554,500. (Round answers to 1 decimal place, e.g. 12.5.) 2022 2021 Accounts receivable turnover Enter turnover in times rounded to 1 decimal place. times Enter turnover in times rounded to 1 decimal place. times Compute for each year the average collection period. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) 2022 2021 Average collection period Enter the collection period in days rounded to 1 decimal place. days Enter the collection period in days rounded to 1 decimal place. days
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 28,966 $ 32,863 $ 34,232 Express the balance sheets in common-size percent
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 36,935 $ 41,463 $ 42,370 Accounts receivable, net 109,168 77,049 58,205 Merchandise inventory 133,260 98,850 60,159 Prepaid expenses 11,894 11,445 4,660 Plant assets, net 328,558 305,516 266,906 Total assets $ 619,815 $ 534,323 $ 432,300 Liabilities and Equity Accounts payable $ 158,964 $ 90,301 $ 56,493 Long-term notes payable secured bymortgages on plant assets 114,195 120,436 96,494 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 183,156 160,086 115,813 Total liabilities and equity $ 619,815 $ 534,323 $ 432,300 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1…
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 27,970 80, 264 100,917 9,097 251, 134 $ 469,382 $ 116,876 90,891 163,500 98,115 $ 469,382 $ 372,220 189,161 10,373 7,933 For both the current year and one year ago, compute the following ratios: Current Year 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 $ 70,436 92,137 163,500 78,567 $ 404,640 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 610,197 579,687 $ 30,510 $1.88 2 Years Ago $ 312,989…
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,026 $ 39,379 $ 39,798 Accounts receivable, net 98,617 68,224 53,063 Merchandise inventory 120,309 91,975 57,666 Prepaid expenses 10,957 10,544 4,602 Plant assets, net 307,089 282,118 255,071 Total assets $ 570,998 $ 492,240 $ 410,200 Liabilities and Equity Accounts payable $ 142,179 $ 81,525 $ 53,063 Long-term notes payable secured bymortgages on plant assets 104,127 112,083 88,841 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 162,192 136,132 105,796 Total liabilities and equity $ 570,998 $ 492,240 $ 410,200 The company’s income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr…