Selected financial statement data for Flounder Company are presented below.Net salesCost of goods sold$1,521,500705.000Interest expense11,900Net income213,010Total assets (ending)980,000Total common stockholders' equity (ending))700,000-17 ETotal assets at the beginning of the year were $810,000; total common stockholders' equity was $515,000 at the beginning of theperiod.(a)

Calculation of Financial Ratios for Flounder CompanyBased on the provided data, we will calculate…

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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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Similar questions

Compute common-size percent for the following comparative income statements (round percent to one decimal). Using the common-size percent, which item is most responsible for the decline in net income? Roberts Corporation Income Statement For Years Ended December 31 Current Year Prior Year Sales $740,000 $625,000 Cost of goods sold 560,300 290,800 Gross profit 179,700 334,200 Operating expenses 128,200 218,500 Net income $ 51,500 $115,700
Horizontal Analysis of the Income Statement Income statement data for Boone Company for the years ended December 31, 20Y5 and 20Y4, are as follows: Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income 20Y5 $748,200 (622,300) $125,900 $(36,890) (33,020) $(69,910) $55,990 (22,400) $33,590 20Y4 Boone Company $580,000 (490,000) $90,000 $(31,000) (26,000) $(57,000) $33,000 (13,200) $19,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 20Y5 when compared with 20Y4. Round percentage answers to one decimal place.
Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $678,470 Interest expense 119,730 Average total assets 6,140,000 Determine the return on total assets. If required, round the answer to one decimal place. %
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $47,900; total assets, $219,400; common stock, $83,000; and retained earnings, $39,956.) CABOT CORPORATIONIncome StatementFor Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,050 Gross profit 151,550 Operating expenses 99,400 Interest expense 4,100 Income before taxes 48,050 Income tax expense 19,356 Net income $ 28,694 CABOT CORPORATIONBalance SheetDecember 31 Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 19,500 Short-term investments 8,000 Accrued wages payable 3,400 Accounts receivable, net 33,600 Income taxes payable 2,900 Merchandise inventory 42,150 Long-term note payable, secured by mortgage on plant assets 66,400 Prepaid expenses 2,800…
Delta Company reports the following year-end balance sheet data. The company's acid-test ratio equals: Cash $ 53,000 Current liabilities $ 88,000 Accounts receivable 68,000 Long-term liabilities 30,000 Inventory 73,000 Common stock 113,000 Equipment 158,000 Retained earnings 121,000 Total assets $ 352,000 Total liabilities and equity $ 352,000
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $516,000 $400,000 Cost of goods sold 428,400 340,000 Gross profit $87,600 $60,000 Selling expenses $26,180 $22,000 Administrative expenses 22,860 18,000 Total operating expenses $49,040 $40,000 Income before income tax $38,560 $20,000 Income tax expenses 15,400 8,000 Net income $23,160 $12,000 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.
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,212,000 Liabilities: Current liabilities $120,000 Note payable, 6%, due in 15 years 606,000 Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $544,500 Common stock, $10 par (no change during year) 544,500 Retained earnings: Balance, beginning of year $580,000 Net income 226,000 $806,000 Preferred dividends $21,780 Common dividends 58,220 80,000 Balance, end of year 726,000 Total stockholders' equity $1,815,000 Sales $16,351,500 Interest expense $36,360 Assuming that total assets were $2,414,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal…
Delta Company reports the following year-end balance sheet data. The company's acid-test ratio equals: Cash Accounts receivable Inventory Equipment Total assets Multiple Choice о о 0.60 1.39 2.22 0.38 0.63 $ 55,000 Current liabilities 70,000 Long-term liabilities 75,000 Common stock 160,000 Retained earnings $360,000 Total liabilities and equity $ 90,000 45,000 115,000 110,000 $ 360,000
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 $537,600 $420,000 Cost of goods sold 462,500 370,000 Gross profit $75,100 $50,000 Selling expenses $22,420 $19,000 Administrative expenses 20,160 16,000 Total operating expenses $42,580 $35,000 Income before income tax $32,520 $15,000 Income tax expenses 13,000 6,000 Net income $19,520 $9,000 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 $537,600 $420,000 $fill in the blank…
The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. InstructionsDetermine the following measures for 20Y2. Round to one decimal place including percentages, except for per-share amounts, which should be rounded to the nearest cent.1. Working capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days' sales in receivables6. Inventor)’ turnover7. Number of days' sales in inventory
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 62 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $1,808,800 $1,544,500 Net income 414,400 316,300 Total $2,223,200 $1,860,800 Dividends: On preferred stock $13,300 $13,300 On common stock 38,700 38,700 Total dividends $52,000 $52,000 Retained earnings, December 31 $2,171,200 $1,808,800 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $2,413,380 $2,223,550 Cost of goods sold 825,630 759,580 Gross profit $1,587,750 $1,463,970 Selling expenses $541,940 $662,800 Administrative expenses 461,660 389,260 Total operating expenses $1,003,600 $1,052,060 Income from…
Horizontal Analysis of the Income Statement Income statement data for Boone Company for the years ended December 31, 20Y5 and 20Y4, are as follows: 20Υ5 20Υ4 Sales $673,200 $510,000 Cost of goods sold (572,000) (440,000) Gross profit $101,200 $70,000 Selling expenses $(30,500) $(25,000) Administrative expenses (27,300) (21,000) Total operating expenses $(57,800) $(46,000) Income before income tax $43,400 $24,000 Income tax expenses (17,400) (9,600) Net income $26,000 $14,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 20Y5 when compared with 20Y4. Round percentage answers to one decimal place. Boone Company Comparative Income Statement For the Years Ended December 31, 20Y5 and 20Y4 20Y5 Amount 20Y4 Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales $673,200 $510,000 % Cost of goods sold (572,000) (440,000) Gross profit $101,200 $70,000 % Selling expenses $(30,500) $(25,000) Administrative expenses (27,300)…

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