The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Year 1 $367,950 $310,000 312,170 262,000 Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earningst Year 2 55,780 45,000 37,410 33,400 18,370 14,600 6,310 4,800 $ 12,060 $ 9,800 $ 4,270 $ 8,400 16,830 20,000 48,350 42,000 29,810 25,000 $ 99,260 $ 95,400 $ 11,820 40,480 24,000 $ 14,200 39,200 24,000 22,960 18,000 $ 99,260 $ 95,400 "One-third was credit sales. †During Year 2, cash dividends amounting to $7,100 were declared and paid. Required: 1 Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, Le, 0.1243 should be entered es 12.43) Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Camings before income taxes Income tax expense Net angs Statement of financial position Cash Accounts receivable (ne) Inventory Property, plant, and equipment (net Current ties Long term de Common shares Retained earnings 2-a By what amount did working capital change? Change in working capital 2-b. What was the percentage change in the income tax rate? (Round Intermediate calculations and finel answer to 2 decimal places) Parcentage change Increase (Decrease) Year 2 over Year 1 Amount Percentage N 2-c. What was the amount of cash collections from customers in year 2? Amount of cash infor Percentage change 2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal piece)
The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Year 1 $367,950 $310,000 312,170 262,000 Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earningst Year 2 55,780 45,000 37,410 33,400 18,370 14,600 6,310 4,800 $ 12,060 $ 9,800 $ 4,270 $ 8,400 16,830 20,000 48,350 42,000 29,810 25,000 $ 99,260 $ 95,400 $ 11,820 40,480 24,000 $ 14,200 39,200 24,000 22,960 18,000 $ 99,260 $ 95,400 "One-third was credit sales. †During Year 2, cash dividends amounting to $7,100 were declared and paid. Required: 1 Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, Le, 0.1243 should be entered es 12.43) Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Camings before income taxes Income tax expense Net angs Statement of financial position Cash Accounts receivable (ne) Inventory Property, plant, and equipment (net Current ties Long term de Common shares Retained earnings 2-a By what amount did working capital change? Change in working capital 2-b. What was the percentage change in the income tax rate? (Round Intermediate calculations and finel answer to 2 decimal places) Parcentage change Increase (Decrease) Year 2 over Year 1 Amount Percentage N 2-c. What was the amount of cash collections from customers in year 2? Amount of cash infor Percentage change 2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal piece)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need complete and correct answer for all parts or skip answer with all workings and steps in text form please show calculation, formula and explanation clearly for all steps for all parts answer in text form
Transcribed Image Text:The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data:
Statement of Earnings
Sales revenue
Cost of sales
Gross profit
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
Net earnings
Statement of Financial Position
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Current liabilities (no interest)
Long-term debt (interest rate: 10 %)
Common shares (6,000 shares)
Retained earningst
Year 2
Year 1
$367,950 $310,000
312,170 262,000
48,000
33,400
55,780
37,410
18,370
6,310
$ 12,060
14,600
4,800
$ 9,800
$ 4,270 $ 8,400
16,830
20,000
48,350 42,000
29,810
25,000
$ 99,260
$ 95,400
$ 11,820
40,480
24,000
22,960
$ 99,260
$ 14,200
39,200
24,000
18,000
$ 95,400
*One-third was credit sales.
†During Year 2, cash dividends amounting to $7,100 were declared and paid.
Required:
1 Complete the following columns for each item in the comparative financial statements (Negative answers should be Indicated by a
minus sign. Round percentage answers to 2 decimal places, Le., 0.1243 should be entered as 12.43.)
Statement of earnings:
Sales revenue
Cost of sales
Gross margin
Operating expenses and interest expense
Earnings before income taxes
Income tax expense
Net eamings
Statement of financial position:
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
Current liabilities
Long-term debt
Common shares
Retained earnings
Percentage change
Increase (Decrease)
Year 2 over Year 1
Amount Percentage
%
$
2-a. By what amount did working capital change?
Change in working capital
2-0. What was the percentage change in the income tax rate? (Round Intermediate calculations and final answer to 2 decimal
places.)
$
2-c. What was the amount of cash collections from customers in year 2?
Amount of cash inflow
2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal place.)
Percentage change
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