Е.The income statement , statement of retained earnings and balance sheet of SomervilleCompany are as follows:Somerville CompanyIncome StatementFor the Year Ended December 31, 2019AmountPercentNet sales8,281,989100.0%Less: Cost of goods soldGross marginLess: Operating expensesOperating income(5,383,293)2,898,696(1,323,368)1,575,328(50,000)1,525,32865.035.016.019.0Less: Interest expenseIncome before taxes0.618.4Less: Income taxes (40%)(610,131)915.1977.4Net income11.0Somerville CompanyStatement of Retained EarningsFor the Year Ended December 31, 2019Balance, beginning of period1,979,155Net income915,197Total2,894,352(80,000)(201,887)2.612.465Less: Preferred dividendsDividends to common stockholdersBalance, end of period Somerville CompanyComparative Balance SheetsAt December 31, 2018, 201920182019AssetsCurrent Assets2,875,000800,000939,776490,0002,580,000700,000690,000260,000CashMarketable securitiesAccounts receivable (net)Inventories93,0005,197,77674,2614,304,261OtherTotal current assetsProperty, Plant and EquipmentLandBuilding and equipment (net)Total long-term assets1,575,0001,348,8002,923,8001,067,3151,150,0002,217,315Total Assets8,121,5766,521,576Liabilities and Stockholders' EquityCurrent liabilitiesNotes, payable, short termAccounts payableCurrent maturity of long-term debtAccrued payables1,170,127298,4843,000200,0001,671,611543,641101,5002,00057,780704,921Total current liabilitiesLong -term liabilitiesBonds Payable, 10%500,0002,171,611500,0001,204,921Total LiabilitiesStockholders' EquityPreferred stock, P25 par 8%Common stock, P1.50 parAdditional paid in capitalRetained earningsTotal Stockholders' Equity1,000,000337,5002,000,0002,612,4655,949,9651,000,000337,5002,000,0001,979,1555,316,655Total Liabilities and Stockholders' Eauitv8.121.5766.521.576Calculate the following:1. Return on Sales2. Average Total Assets and Return on Assets. Assume a tax rate of 40%.3. Return on stockholders' equity||

Name: Е.The income statement , statement of retained earnings and balance s
Uploaded: 2022-11-29T14:11:17.000Z
Channel: Bartleby
Description: Е.The income statement , statement of retained earnings and balance sheet of SomervilleCompany are as follows:Somerville CompanyIncome StatementFor the Year Ended December 31, 2019AmountPercentNet sales8,281,989100.0%Less: Cost of goods soldGross ma

In order to determine the return on sales, the operating income is required to be divided by the net…

Business

Accounting

The income statement , statement of retained earnings and balance sheet of Somerville Company are as follows: Somerville Company Income Statement For the Year Ended December 31, 2019 Amount Percent Net sales 8,281,989 100.0% Less: Cost of goods sold Gross margin (5,383,293) 2,898,696 (1,323,368) 1,575,328 (50,000) 1,525,328 65.0 35.0 Less: Operating expenses Operating income Less: Interest expense 16.0 19.0 0.6 Income before taxes 18.4 Less: Income taxes (40%) (610,131) 915.197 7.4 Net income 11.0 Somerville Company Statement of Retained Earnings For the Year Ended December 31, 2019 Balance, beginning of period 1,979,155 Net income 915,197 Total 2,894,352 Less: Preferred dividends (80,000) Dividends to common stockholders (201,887) 2.612.465 Balance, end of period

The income statement , statement of retained earnings and balance sheet of Somerville Company are as follows: Somerville Company Income Statement For the Year Ended December 31, 2019 Amount Percent Net sales 8,281,989 100.0% Less: Cost of goods sold Gross margin (5,383,293) 2,898,696 (1,323,368) 1,575,328 (50,000) 1,525,328 65.0 35.0 Less: Operating expenses Operating income Less: Interest expense 16.0 19.0 0.6 Income before taxes 18.4 Less: Income taxes (40%) (610,131) 915.197 7.4 Net income 11.0 Somerville Company Statement of Retained Earnings For the Year Ended December 31, 2019 Balance, beginning of period 1,979,155 Net income 915,197 Total 2,894,352 Less: Preferred dividends (80,000) Dividends to common stockholders (201,887) 2.612.465 Balance, end of period

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

Here are comparative financial statement data for Bramble Company and Debra Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Bramble Company 2022 $1,896,000 1.020,048 257,856 Return on assets 7,584 54,984 322,500 520,800 O 64,200 Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings 2021 Return on common stockholders' equity 520,800 64,200 Debra Company $561,000 297,330 79,662 3,927 6,171 $310,000 83,500 $78,000 500,300 139,800 123,000 75,600 29,600 108,400 498,000 172,700 2022 34,400 500,300 2021 498,000 146,300 Bramble Company 75,600 90,400 67.2 % % 139,800 34,400 28,400 122,500 Compute the 2022 return on assets and the return on common stockholders' equity ratios for both companies. (Round answers to 1 decimal place, eg. 12.1%) 38,000 123,000 Debra Company 29,600…
GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…
U6.
Comparative Income StatementsConsider the following income statement data from the Ross Company: Current Year Previous Year Sales revenue $525,000 $450,000 Cost of goods sold 336,000 279,000 Selling expenses 105,000 99,000 Administrative expenses 60,000 54,000 Income tax expense 7,800 5,400 Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANYComparative Income Statements Current Year Previous Year Increase(Decrease) PercentChange Sales Revenue Answer Answer Answer Answer Cost of Goods Sold Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Selling Expenses Answer Answer Answer Answer Administrative Expenses Answer Answer Answer Answer Total Answer Answer Answer Answer Income before Income Taxes Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer…
The comparative statements of Osborne Company are presented below: OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales $1,897,652 $1,757,612 Cost of goods sols 1,065,652 1,013,112 Gross profit 832,000 744,500 Selling and administrative expenses 507,112 486,112 Income from operations 324,888 258,388 Other expenses and losses Interest expense 23,327 21,327 Income before income taxes 301,561 237,061 Income tax expense 93,327 74,327 Net income $208,234 $162,734 OSBORNE COMPANY Balance Sheets December 31 2014 2013 Assets Current Assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 124,912 109,912 Inventory 127,327 116,827 Total current assets 386,339 340,939 Plant assets (net) 659,589 530,889 Total assets $1,045,928 $871,828 Liabilities and Stockholders' Equity Current liabilities Accounts payable $167,112 $152,512 Income taxes payable 44,827 43,327 Total…
Two income statements for Cornea Company follow: Cornea CompanyIncome StatementsFor Years Ended December 31 2019 2018 Fees earned $843,000 $714,000 Operating expenses 682,830 614,040 Operating income $160,170 $99,960 a. Prepare a vertical analysis of Cornea Company's income statements. Enter percents as whole numbers. Cornea Company Income Statements For Years Ended December 31 2019 Amount 2019 Percent 2018 Amount 2018 Percent Fees earned $843,000 % $714,000 % Operating expenses 682,830 % 614,040 % Operating income $160,170 % $99,960 % I am having difficulty coming up with the percentages in each column
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $369,600 $280,000 Cost of goods sold 312,000 240,000 Gross profit $57,600 $40,000 Selling expenses $17,080 $14,000 Administrative expenses 15,600 12,000 Total operating expenses $32,680 $26,000 Income before income tax $24,920 $14,000 Income tax expenses 10,000 5,600 Net income $14,920 $8,400 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 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $369,600 $280,000 $ % Cost of goods sold 312,000 240,000 % Gross profit $57,600 $40,000 %
Computing Earnings per Share The income statement, statement of retained earnings, and balance sheet for Jeanette Company are as follows: Jeanette CompanyIncome StatementFor the Year Ended December 31, 20X2 Amount Percent Net sales $8,281,989 100.0% Less: Cost of goods sold (5,383,293) 65.0 Gross margin $2,898,696 35.0 Less: Operating expenses (1,323,368) 16.0 Operating income $1,575,328 19.0 Less: Interest expense (50,000) 0.6 Income before taxes $1,525,328 18.4 Less: Income taxes (40%)* (610,131) 7.4 Net income $915,197 11.0 * Includes both state and federal taxes. Jeanette CompanyStatement of Retained EarningsFor the Year Ended December 31, 20X2 Balance, beginning of period $1,979,155 Net income 915,197 Total $2,894,352 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period $2,612,465 Jeanette CompanyComparative Balance SheetsAt December 31,…
Here are comparative financial statement data for Sandhill Company and Wildhorse Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Sandhill Company Wildhorse Company 2022 2021 2022 2021 Net sales $1,872,000 $559,000 Cost of goods sold 1,100,736 297,388 Operating expenses 263,952 79,378 Interest expense 9,360 4,472 Income tax expense 54,288 6,149 Current assets 326,000 $314,500 83,500 $78,600 Plant assets (net) 519,600 497,900 141,000 125,100 Current liabilities 66,000 75,800 36,600 29,800 Long-term liabilities 107,800 91,600 30,400 25,600 Common stock, $10 par 498,000 498,000 122,500 122,500 Retained earnings 173,800 147,000 35,000 25,800 (a) Prepare a vertical analysis of the 2022 income statement data for Sandhill Company and Wildhorse Company. (Round percentages…
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $527,000 $448,000 Cost of merchandise sold 279,310 215,040 Selling expenses 100,130 94,080 Administrative expenses 105,400 85,120 Income tax expense 15,810 22,400 Question Content Area a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Innovation Quarter Inc.Comparative Income StatementFor the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $527,000 fill in the blank 08e5edf2efb0fbc_1% $448,000 fill in the blank 08e5edf2efb0fbc_2% Cost of merchandise sold 279,310 fill in the blank 08e5edf2efb0fbc_3% 215,040 fill in the blank 08e5edf2efb0fbc_4%…
Net sales Cost of goods sold Gross margin Operating expenses Net income Cash Accounts receivable, net Merchandise inventory Plant assets, net Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity Goliath Company Comparative Income Statements For Years Ended December 31 Current Year One Year Ago $ 206,000 $ 184,000 108,000 121,000 85,000 45,000 $ 40,000 76,000 40,000 $ 36,000 Goliath Company Comparative Balance Sheets For Years Ended December 31 Current Year $ 153,000 58,000 30,000 170,000 $ 411,000 $ 36,000 190,000 60,000 125,000 $ 411,000 Required: Using the above information, compute the following: Two Years Ago $ 160,000 92,000 68,000 36,000 $ 32,000 One Year Ago $ 158,000 52,000 17,000 170,000 $ 397,000 $ 32,000 220,000 60,000 85,000 $ 397,000 Three Years Ago $ 114,000 78,000 36,000 19,000 $ 17,000 Two Years Ago $ 129,000 45,000 23,000 140,000 $ 337,000 $ 28,000 200,000 60,000 49,000 $ 337,000 Three Years Ago $ 156,000…
s