Titabllity ratios (LO4-1oj The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in thousands) 2021 2020 Income statement information Net sales $5,400 $4,400 Net income 228 128 Balance sheet information Current assets 2$ 820 770 Property, plant, and equipment (net) 1,280 930 Total assets $2,100 $1,700 Current liabilities $ 560 $ 210 Long-term liabilities 770 770 Common stock 600 600 Retained earnings 170 120 Liabilities and shareholders' equity $2,100 $1,700 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a. Profit margin on sales 4.2 O % 1b Return on assets 10.0 % 1c. Return on equity 30.6 O % 2. Dividends paid $ 280,000

Titabllity ratios (LO4-1oj The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in thousands) 2021 2020 Income statement information Net sales $5,400 $4,400 Net income 228 128 Balance sheet information Current assets 2$ 820 770 Property, plant, and equipment (net) 1,280 930 Total assets $2,100 $1,700 Current liabilities $ 560 $ 210 Long-term liabilities 770 770 Common stock 600 600 Retained earnings 170 120 Liabilities and shareholders' equity $2,100 $1,700 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a. Profit margin on sales 4.2 O % 1b Return on assets 10.0 % 1c. Return on equity 30.6 O % 2. Dividends paid $ 280,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 90PSB

See similar textbooks

Related questions

Q: Direct materials and conversion equivalent units of production for August . Direct materials and…

A: Solution:- Morning Brew Coffee Company…

Q: Let's suppose that you are a senior management member in a firm and you are trying to explain and…

A: Depreciation means the amount of normal wear or tear of the assets due to usage or passage of time.…

Q: On the 1st of January 2014, Peck PLC purchased a building for £2m which at the time of purchase was…

A: Depreciation means the amount of normal wear or tear of the assets due to usage or passage of time.…

Q: Could you please explain the process by which you got these answers? I am trying to learn how to do…

A: Workings: Preparation of schedule of expected cash collections:

Q: how do you calculate this question with excel formulas

A: Information Provided: Withdraw amount = $10,000 Interest rate = 6% Years for withdraw $10,000 = 5…

Q: Thank you. This was the calculation I obtained when working the problem for basic EPS. Can you…

A: Diluted EPS used to measure the performance or profitability of the firm it includes convertible…

Q: I need help with figuring out the solution, thank you.

A: The debtors issues an instrument instead of cash said to be note receivable. In case note is paid…

Q: Company W acquired a wastewater treatment plant for 30,000, depreciable over 10 years. The company…

A: Government grant means the amount received from government free of cost. It is received by specified…

Q: I need help trying to figure out where these go.

A: Petty Cash is the small sum of money maintained by the organisation seperate from Cash to meet small…

Q: I couldn't do this because I couldn't figure out how to get the PV factor. How did you get 3.3121?…

A: Given: Interest rate = 8% Years = 4

Q: Problem. The WHN Company is going to introduce one of the three new products: a widget, a hummer, or…

A: Decision tree helps in analyzing the outcomes of different projects. It helps in comparing the…

Q: Could someone dumb down the Black-Scholes Equation for me? Like how it is used in Finance with…

A: Options are a type of derivative financial instrument in which two parties agree to trade an asset…

Q: y .22. Write a max one page reflection on machine reasoning from an accounting , tax or audit…

A: The ability of artificial intelligence (AI) devices to evaluate and understand data and make…

Q: Could you show me to solve this problem step by step. Please

A: The equation we have to solve is as shown on the white board. We will take the following approach.As…

Q: Required: 1. Compute: equivalent unit of production. a, Mixing Department b. Bottling Department 2.…

A: The equivalent unit of production is used in cost accounting. It tells per unit cost of the product.…

Question

100%

I almost got it ! But I got some wrong and would love to learn how to calculate things correctly so I can study.

Exercise 4-27 (Algo) Profitability ratios [LO4-10]
The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020:
($ in thousands)
2021
2020
Income statement information
Net sales
$5,400
$4,400
Net income
228
128
Balance sheet information
Current assets
820
770
Property, plant, and equipment (net)
1,280
930
Total assets
$2,100
$1,700
Current liabilities
560
210
Long-term liabilities
770
770
Common stock
600
600
Retained earnings
170
120
Liabilities and shareholders' equity
$2,100
$1,700
Required:
1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.)
2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For
example, $150,000 rather than 150.)
1a.
Profit margin on sales
4.2 %
10.0 X %
30.6 O %
1b.
Return on assets
1c.
Return on equity
2.
Dividends paid
$ 280,000 8

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

I need answer of this question solution general accounting
Shouldn't the operating expenses for 2020 be 8074.9? Forecasting an Income StatementADP reports the following income statement. AUTOMATIC DATA PROCESSING INC.Statement of Consolidated EarningsFor Year Ended June 30, 2019, $ millions Total revenues $14,175.2 Operating expenses 7,145.9 Systems development and programming costs 636.3 Depreciation and amortization 304.4 Total cost of revenues 8,086.6 Selling, general, and administrative expenses 3,064.2 Interest expense 129.9 Total expenses 11,280.7 Other income expense, net 111.1 Earnings before income taxes 3,005.6 Provision for income taxes 712.8 Net earnings $ 2,292.8 Forecast ADP’s 2020 income statement assuming the following income statement relations. All percentages (other than total revenue growth and provision for income taxes) are based on historic percent of total revenues. Total revenues growth 13% Depreciation and amortization $460.5 million Interest expense No change Other…
Financial metricsfor crystal GlobeTravel include a total asset turnoverof 1,25 and a return equity of14,30 %, and a debit ratio of 15 % with total asset amounting to R3588 as per the statementof financial position, and considering the financing structure comprising both debt and equity,what is the net profit margin of the company?
Return on total assets ratio: net income/ average total assets 21,331/(321,195+225,248)/2= 0.07807= 7.8% (2020 year) 11588/(162,648+225,248)/2= 0.059= 6.0% (2019 year) Write financial analysis report.
posted in account answer pleasee
Selected 2020 balance sheet and income statement information for Vkusno & Tochka Corporation and Tasty Treats, Inc., follows. ($ millions) Vkusno & Tochka Tasty Treats Sales Revenue Interest Expense Net Income Average Total Assets $96,040 $6,090 $27,786 $294,060 28,260 2,715 5,309 32,549 a. Compute the return on assets (ROA) for each company. Use the 25% statutory tax rate. Note: Round your answers to the nearest million dollars. Numerator ($ millions) + Denominator ($ millions) 0+ $ 0+$ Vkusno & Tochka's ROA $ Tasty Treats' ROA $ Vkusno & Tochka's PM $ Tasty Treats' PM Vkusno & Tochka's ROA Tasty Treats' ROA b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. • Note: Round your answers to the nearest million dollars. $ Vkusno & Tochka's AT $ Tasty Treats' AT $ Numerator ($ millions) + Denominator ($ millions) 0$ 05 0+$ 0+ $ PM X % x % X 0 AT c. Discuss any differences in these ratios for each company. has the lower ROA ratio. has the higher PM ratio.…
Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Inventory 12,500Total Assets in 2021 110,000Current Liabilities 40,000Total Assets in 2020 90,000Net Profit 12,000Shareholders' Equity 65,000 Select one:a. 0.12b. 0.10c. 0.18d. 0.13
Forecast an Income Statement Following is the income statement for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $27,807 Costs and expenses Cost of products sold 8,331 Research and development expense 2,330 Selling, general, and administrative expense 9,480 Amortization of intangible assets 1,605 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 5,439 Other nonoperating income, net (373) Interest expense 1,314 Income before income taxes 4,498 Income tax provision 547 Net income 3,951 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $3,932 Use the following assumptions to prepare a forecast of the company’s income statement for FY2020. Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal…
Calculate the profit margin (net income or net profit/total sales)for Rock Castle construction for this fiscal year. What’s the percentage
Perform comparative analysis of Eastman Corporation by completing the analysis below. PROBLEM 1-3 Describe and comm ent on any significant findings in y our co mparative analysis. Comparative Income Statemenrt Analysis EAST MAN COR PORATION Income State ment ($ millions) For Years Ended December 31 Average Cumulative Annual Year 6 Year 5 Year 4 Amount Amount Net sales 21 3,210 %24 2,610 $3,490 $2,860 %24 Cost of goods sold Gross profit. - 3,670 680 1,050 1,800 Operating expenses Income before taxes 2,740 215 105 Net inc ome $1,485 145 58 CHECK Average net income. $563
Required information [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ $ 467,052 357,800 281,165 223,625 185,887 134, 175 66,321 49,376 42,035 31,486 108,356 80,862 77,531 53,313 14,421 10,929 $ $ 63,110 42,384 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets 2020 Assets Current assets Long-term investments Plant assets, net Total assets December 31 2021 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 2019 $…
Forecast an Income StatementSeagate Technology reports the following income statement for fiscal 2019. SEGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019, $ millions Revenue $20,780 Cost of revenue 14,916 Product development 1982 Marketing and administrative 906 Amortization of intangibles 46 Restructuring and other, net (44) Total operating expenses 17,806 Income from operations 2,974 Interest income 168 Interest expense (448) Other, net 50 Other expense, net (230) Income before income taxes 2,744 (Benefit) provision for income taxes (1,280) Net income $4,024 Forecast Seagate’s 2020 income statement assuming the following income statement relations ($ millions). Revenue growth 5% Cost of revenue 71.8% of revenue Product development 9.5% of revenue Marketing and administrative 4.4% of revenue Amortization of intangibles No change Restructuring and other, net $0 Interest income No change…