STATEMENT OF FINANCIAL POSITIONAS AT DECEMBER 31All answers round to two decimal places except (c) & (e), eg 54.544 input as 54.54, 54.545 input as 54.552019201820172$$$20192018timesPlant and equipment (net)500,000466,000 440,000 a)Current ratio5.11 timestimestimesIntangible Assets580,000480,000412,000 b) Acid Test RatiotimestimesShort Term Investments56,000 140,00097,200 b)lnventory TurnoverPrepaid Insurance (less than 12 months)4,0004,0003,800 c)Average days to sell inventory100 DaysDays (Round to days, no decimal place required)Inventory126,000 119,00079,000 d)Accounts Receivable turnovertimestimes (Assume all the sale are credit sales)Accounts receivables (net)54,00048,00060,000 e) Average Collection PeriodDaysDays (Round to days, no decimal place required)%Cash220,000 144,000 122,000 f)Profit Margin1,540,000 1,401,000 1,214,000 g)Return on Assetstimestimesh)Asset Turnover%Accounts Payable80,000 100,000 100,000 i) Return on ordinary shareholders' Equity%Salaries Payable and other current liabilities10,00016,00012,000 j) Dividend Payout Ratio0.00%2$Long-term debt (due in five years)Ordinary shares, $10 par91,000104,00098,000 k)Earings per Share400,000400,000 360,000 (Weighted-average ordinary shares in 2019 were 40,000 and in 2018 were 38,000)timestimesRetained earnings959,000 781,000 644,000 I)Time interest earned ratio1,540,000 1,401,000 1,214,000 m) Debt to total assets ratio15.70% SMART TOYS CORPORATIONINCOME STATEMENTFor the following questions , please state year 2019 or 2018FOR THE YEAR ENDED DECEMBER 3120192018Based on the calculated ratios:2$$Which year did the company collect money faster from the customer ? YearWhich year did the company have a better position to pay off the short term liabilities YearSales866,000 799,000Less: Sales allowances13,00018,000Net sales853,000 781,000Less: Cost of goods soldGross profitOperating expenses445,000414,000408,000180,00020,000367,000190,00016,000Less: Interest expenseLess: Income tax30,00024,000Net income178,000137,000

Ratio Analysis Ratio Analysis is one of the power tool to the management of the company to ascertain…

SMART TOYS CORPORATION INCOME STATEMENT For the following questions , please state year 2019 or 2018 FOR THE YEAR ENDED DECEMBER 31 2019 2018 Based on the calculated ratios: Which year did the company collect money faster from the customer ? Year Sales 866,000 Which year did the company have a better position to pay off the short term liabilities Year 799,000 18,000 Less: Sales allowances 13,000

SMART TOYS CORPORATION INCOME STATEMENT For the following questions , please state year 2019 or 2018 FOR THE YEAR ENDED DECEMBER 31 2019 2018 Based on the calculated ratios: Which year did the company collect money faster from the customer ? Year Sales 866,000 Which year did the company have a better position to pay off the short term liabilities Year 799,000 18,000 Less: Sales allowances 13,000

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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You are assessing the performance of a retail company, Alpha. The income statement and balancesheet for Alpha at the end of 2019 and 2020 are presented below. income statement 2020 2019 revenue 750 720 cost of goods sold 400 450 depreciation 50 50 operating profit 300 220 interest expenses 30 25 profit before tax 270 195 tax expenses 90 70 net profit 180 125 balance sheet 2020 2019 assets non current asset 2,000 1,800 accumulate depreciation 500 450 total non current asset 1,500 1,350 current asset inventory 400 550 trade receivables 600 550 bank 200 250 total current asset 1,200 1,350 total asset 2,700 2,700 equity and liabilities equity contributed equity 1,000 1,000 accumulated retained earnings 500 450 total equity 1,500 1,450 liabilities non current liabilities long term loans 500 400 current liabilities trade payables 550 750 other payables 150 100 total current…
Calculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company's ability to pay its current liabilities improve over the two years? No + Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $15,000 $14,250 Cost of goods sold 7,425 7,020 Gross profit 7,575 7,230 Selling and administrative expenses 3,780 3,645 Income from operations 3,795 3,585 Interest expense 405 338 Income before income taxes 3,390 3,247 Income tax expense 567 540 Net income $2 823 $2 707
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Quick Ratio Calculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company's ability to pay its current liabilities improve over the two years? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $13,000 $12,350 Cost of goods sold 6,600 6,240 Gross profit 6,400 6,110 Selling and administrative expenses 3,360 3,240 Income from operations 3,040 2,870 Interest expense 360 300 Income before income taxes 2,680 2,570 Income tax expense 504 480 Net income $2,176 $2,090 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $240 $480 Accounts receivable 1,080 960 Inventory 600 780 Other current assets 480 300 Total current assets 2,400 2,520 Property, plant, & equipment (net) 3,120 3,000 Other assets 6,840 7,080 Total assets $12,360 $12,600 Liabilities…
The financial statements of Dandy Distributors Ltd. are shown on the "Fcl. Stmts." page. 1 Based on Dandy's financial statements, calculate ratios for the year ended December 31, 2020. Assume all sales are on credit. Show your work. 2 From these ratios, analyze the financial performance of Dandy.
What are the firm’s net profit margins for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 Assets 2018 2019 Sales Revenue $2,580 $2,865 Cash $70 $50 Less: Cost of goods sold $1,060 $1,500 Short-Term investments $35 $9 Less: Operating Expenses $105 $162 Accounts rec. 400 460 Less: Depreciation $85 $80 Inventory 490 556 Earnings before interest and taxes $1,330 $1,123 Total Current Assets $995 $1,075 Less: Interest paid $350 $380 Net fixed assets 1890 1,910 Taxable Income $980 $743 Less: Taxes (40%) $392 $297 Total assets $2,885 2,985 Net income $588 $446 Liabilities and Owner's Equity Dividends (45%) $265 $201 2018 2019 Additions to Retained Earnings $323 $245 Accounts payable $240 $210 Accruals $20 $20 Notes payable 65 74 Total Current…
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K McDaniel and Associates, Inc. reported the following amounts on its 2024 income statement: Year Ended December 31, 2024 Net income Income tax expense Interest expense $ 22,950 6,600 3,000 What was McDaniel's times-interest-earned ratio for 2024? OA. 7.65 OB. 10.85 OC. 9.85 OD. 8.65 point(s) possible ...
Need Help ASAP! Calculate the gross profit percentage ratio of Apple Inc. for the year 2020 (current year) and 2019 (previous year) and the gross profit percentage ratio of its industry peer Microsoft Corp. for the year 2020 (current year). Show calculations. Round the ratios to two decimal places
Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018(in thousands) 2017 Gross sales $2,004,719 $1,937,021 $1,835,987 Less: Sales discounts 4,811 4,649 4,406 Less: Sales returns and allowances 2,406 2,324 2,203 Net sales $1,997,502 $1,930,048 $1,829,378 Cost of goods sold 621,463 619,847 660,955 Gross profit $1,376,039 $1,310,201 $1,168,423 Operating expenses 577,369 595,226 583,555 Operating income $798,670 $714,975 $584,868 Other income (expenses) 15,973 (6,140) (8,773) Net income $814,643 $708,835 $576,095 At December 31 2019 2018(in thousands) 2017 Accounts receivable $201,290 $195,427 $182,642 Less: Allowance for doubtful accounts 2,516 2,736 2,192 Net accounts receivable $198,774 $192,691 $180,450 Required: 1. Calculate the following ratios for 2018 and 2019. Round your answers…
- What are the firm’s current ratios for 2018 and 2019?