Tri-Star Products Inc. had the following financial summary information for the operating year recently ended: Net revenues $830,000,000 Gross profit 332,000,000 Operating income 165,000,000 Interest expense 17,000,000 Earnings before taxes 120,000,000 Net income 72,000,000 Changes in operating assets/liabilities: Decrease in accounts payable Increase in interest payable Decrease in inventories Increase in income taxes payable Increase in accounts receivable (40,000,000) 3,500,000 (24,000,000) 10,000,000 125,000,000 Other financial information: Dividend income received Gain on sale of assets Using the financial information above, what is the company's reported operating cash flow under the direct method? a. 98,500,000 b. 137,900,000 c.139,500,000 d/ 146,500,000 7,000,000 1,400,000

Tri-Star Products Inc. had the following financial summary information for the operating year recently ended: Net revenues $830,000,000 Gross profit 332,000,000 Operating income 165,000,000 Interest expense 17,000,000 Earnings before taxes 120,000,000 Net income 72,000,000 Changes in operating assets/liabilities: Decrease in accounts payable Increase in interest payable Decrease in inventories Increase in income taxes payable Increase in accounts receivable (40,000,000) 3,500,000 (24,000,000) 10,000,000 125,000,000 Other financial information: Dividend income received Gain on sale of assets Using the financial information above, what is the company's reported operating cash flow under the direct method? a. 98,500,000 b. 137,900,000 c.139,500,000 d/ 146,500,000 7,000,000 1,400,000

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 23E: The following data (in millions) are taken from the financial statements of Target Corporation: a....

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The following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. What conclusions can you draw from your analysis of the revenue and the total operating expenses?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
Sprout Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $510,000 $480,000 Income before income tax expense 5,610,000 6,720,000 a. Determine the times interest earned ratio for the current year and the prior year. Current year Prior Year b. Is the times interest earned ratio improving or declining?
Data extracts from Gamma's accounts are shown below Turnover Gross Profit Expenses Operating Profit Interest and Tax Profit for Year Non-current assets Inventory Receivables Cash at Bank Payables Other Current Liabilities Net current assets Shareholder funds 10% Debenture (2030) Required: Ye-Dec-20 Ye-Dec-19 18,500 16,000 4,500 4,000 1,500 2,400 3,000 1,600 1,100 700 1,900 900 19,600 16,400 840 640 2,790 1,890 450 350 830 570 340 460 2,910 1,850 15,510 13,250 7,000 5,000 22,510 18,250 A) Calculate the following accounting ratios for each year-end 1) Return on Capital Employed 2) Profit Margin on Sales 3) Gearing Ratio 4) Interest Cover Ratio 5) Return to Shareholders 6) Quick Asset or Acid test Ratio 7) Cash Conversion Period (Operating Cash Cycle) B) Outline the limitations of accounting ratios
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ces Income statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 12%) Common stock ($5 par value, 7,500 shares outstanding) Retained earnings Total liabilities and stockholders' equity Return on assets Total asset turnover Net profit margin % Year 2 % $ 220,000 119,500 100,500 59,000 41,500 11,000 $ 30,500 $7,000 15,500 43,000 49,500 $ 115,000 $ 17,500 46,500 37,500 Year 11 $ 174,500 103,000 71,500 54,500 17,000 5,500 $ 11,500 2. Compute return on assets, total asset turnover, and the net profit margin for Year 2. Note: Round your answers to 2 decimal places. $ 8,500 19,500 38,400 41,000 $ 107,400 $ 18,500 46,500 37,500 4,900 13,500 $ 115,000 $ 107,400
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