The following are extracted from the financial statements of Shawn Co., for 2019, 2018, and2017.2019$233,0002018$204,000(110,000)(81,500)2017Net salesCost of sales(124,000)(95,000)Selling and administrative expensesOther income:(3,700)(3,050)1,175$ 10,625(4,740)5,8851,510$ 7,395InterestOther100Earnings before tax and extraordinary creditProvision for income taxEarnings before extraordinary creditExtraordinary credit$ 10,400(4,800)5,600$ 5,600Total assets$202,00024,600$173,000$161,000Long-term debtCommon equityPreferred stockPreferred dividends17,40015,200112,800123,0004,000280116,8004,0004,000280280Required:Compute the following ratios for Shawn Co. for 2019 and 2018.Net profit margin1.2.Total asset turnover3.Return on assets4.Return on investmentReturn on total equityReturn on common equityGross profit margin5.6.7.Discuss the trend in profitability and identify specific causes for the trend.

Ratio Analysis: Ratio analysis is a system of analysis or comparison of the ratio of the company…

The following are extracted from the financial statements of Shawn Co., for 2019, 2018, and 2017. 2019 $233,000 (124,000) (95,000) 2018 $204,000 (110,000) (81,500) 2017 Net sales Cost of sales Selling and administrative expenses Other income: (3,700) 100 S 10,400 (4,800) 5,600 Interest (3,050) 1,175 Other Earnings before tax and extraordinary credit Provision for income tax S 10,625 (4,740) 5,885 1,510 $ 7,395 Earnings before extraordinary credit Extraordinary credit $ 5,600 Total assets $202,000 $173,000 17,400 S161,000 15,200 Long-term debt Common equity Preferred stock Preferred dividends 24,600 112,800 123,000 4,000 116,800 4,000 4,000 280 280 280 Required: Compute the following ratios for Shawn Co. for 2019 and 2018. Net profit margin Total asset turnover 1. 2. 3. Return on assets 4. Return on investment

The following are extracted from the financial statements of Shawn Co., for 2019, 2018, and 2017. 2019 $233,000 (124,000) (95,000) 2018 $204,000 (110,000) (81,500) 2017 Net sales Cost of sales Selling and administrative expenses Other income: (3,700) 100 S 10,400 (4,800) 5,600 Interest (3,050) 1,175 Other Earnings before tax and extraordinary credit Provision for income tax S 10,625 (4,740) 5,885 1,510 $ 7,395 Earnings before extraordinary credit Extraordinary credit $ 5,600 Total assets $202,000 $173,000 17,400 S161,000 15,200 Long-term debt Common equity Preferred stock Preferred dividends 24,600 112,800 123,000 4,000 116,800 4,000 4,000 280 280 280 Required: Compute the following ratios for Shawn Co. for 2019 and 2018. Net profit margin Total asset turnover 1. 2. 3. Return on assets 4. Return on investment

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

Crane Company's 2025 financial statements contain the following selected data: Income taxes Interest expense Net income $43000 20000 3.1 times. 6.2 times. 5.2 times. 4.1 times. 61000 Crane's times interest earned for 2025 is
Use the following information to answer this question. Windswept, Inc.2017 Income Statement($ in millions) Net sales $ 9,390 Cost of goods sold 7,660 Depreciation 455 Earnings before interest and taxes $ 1,275 Interest paid 100 Taxable income $ 1,175 Taxes 411 Net income $ 764 Windswept, Inc.2016 and 2017 Balance Sheets($ in millions) 2016 2017 2016 2017 Cash $ 210 $ 240 Accounts payable $ 1,290 $ 1,335 Accounts rec. 960 860 Long-term debt 1,080 1,280 Inventory 1,750 1,665 Common stock 3,300 3,190 Total $ 2,920 $ 2,765 Retained earnings 620 870 Net fixed assets 3,370 3,910 Total assets $ 6,290 $ 6,675 Total liab. & equity $ 6,290 $ 6,675 What is the quick ratio for 2017?
Data for Kahn, Inc. follows: Kahn, Inc. Comparative Income Statement Years Ended Dec. 31, 2019 and 2018 2019 2018 Net Sales Revenue 550,000 500,000 Expenses: Cost of Goods Sold 245,000 220,000 Selling and Administrative Expenses 100,000 96,000 Other Expenses (Interest Expense) 12,000 9,000 Income Tax Expense 58,000 47,000 Total Expenses 415,000 372,000 Net Income 135,000 128,000 Prepare a horizontal analysis of the comparative income statement of Kahn, Inc. (Round to one decimal place.)
Obtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com a. What was Target's gross margin percentage for the fiscal year ended February 2, 2019 (2018) and 2017? Use "Sales" for these computations b. What was Target's Return on Sales percentage for 2018 and 2017? Use "Total Revenue" for these computations. c. Target's return on ales percentage for 2017 was higher than it was in 2018. Ignoring taxes, how much higher would Target's 2018 net income have been if it's return on sales percentage in 2018 had been the same as for 2017?
Concord Ltd. had the following 2023 income statement data: Sales revenue Cost of goods sold Gross profit Operating expenses (includes depreciation of $22,900) Income before income taxes Income taxes Net income $207,500 (a) 119,000 88,500 48,000 40,500 16,000 $24,500 The following accounts increased during 2023 by the amounts shown: Accounts Receivable, $15,900; Inventory, $10,800; Accounts Payable (relating to inventory), $13,900; Taxes Payable, $2,200; and Mortgage Payable, $40,500. Prepare the cash flows from operating activities section of Concord's 2023 statement of cash flows using the indirect method and following IFRS. (Show amounts that decrease cash flow with either a negative sign e.g.-15,000 or in parenthesis e.g. (15,000).) Concord Corporation Statement of Cash Flows Indirect Mothed)
Selected information follows for Sheridan Corporation for 2023: Accounts payable $60,300 Cash 240,000 Cost of goods sold 580, 000 Income tax expense 31, 400 Interest expense 3,500 Retained earnings 377,000 Sales revenue 757, 500 Selling expenses 61,800 Calculate Sheridan's net income for 2023. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net income Senter the net income in dollars 79800 Incorrect answer eTextbook and Media
Calculate the FCFE of this financial statement.
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 $550,000 2022 2021 4,300,000 4,000,000 7.9 times $540,000 2021 7.5 times 46.2 days 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.
Here are simplified financial statements for Phone Corporation in 2020: INCOME STATEMENT (Figures in $ millions) Net sales $ 12,300 Cost of goods sold 3,610 Other expenses 4,022 Depreciation 2,248 Earnings before interest and taxes (EBIT) $ 2,420 Interest expense 640 Income before tax $ 1,780 Taxes (at 21%) 374 Net income $ 1,406 Dividends $ 756 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Cash and marketable securities $ 80 $ 149 Receivables 1,932 2,310 Inventories 142 193 Other current assets 822 887 Total current assets $ 2,976 $ 3,539 Net property, plant, and equipment 19,883 19,825 Other long-term assets 4,126 3,680 Total assets $ 26,985 $ 27,044 Liabilities and shareholders’ equity Payables $ 2,474 $ 2,950 Short-term debt 1,374 1,528 Other current liabilities 766 742 Total current liabilities $ 4,614 $ 5,220 Long-term debt and leases 9,259 8,444 Other long-term liabilities 6,088…
net income? Find net income
The following are financial statements of Carla Vista Co.. Carla Vista Co.Income StatementFor the Year Ended December 31, 2022 Net sales $2,247,500 Cost of goods sold 1,018,500 Selling and administrative expenses 901,000 Interest expense 82,000 Income tax expense 75,000 Net income $ 171,000 Carla Vista Co.Balance SheetDecember 31, 2022 Assets Current assets Cash $ 56,300 Debt investments 81,000 Accounts receivable (net) 169,500 Inventory 118,900 Total current assets 425,700 Plant assets (net) 574,000 Total assets $ 999,700 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 161,000 Income taxes payable 37,000 Total current liabilities 198,000 Bonds payable 201,880 Total liabilities 399,880 Stockholders’ equity Common stock 355,000 Retained earnings 244,820…
The following data are taken from the financial statements of Wildhorse Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 (a) 2025 $594,200 4,842,800 Accounts receivable turnover Compute for each year the accounts receivable turnover. At the end of 2023, accounts receivable (net) was $542,00 2024 $ 616,500 4,054,750 2025 times 2024 times