Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 12, Problem 7PEA
a.
To determine
Calculate the revenue per employee for each year.
b.
To determine
Interpret the results of both the year.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,|
2019-2015. The firm's total assets at the end of 2017 were $400,000.
An internal staff cost analyst has prepared the following financial data from the annual reports.
You have been hired as a consultant to help analyze the financial position.
2019
2018
2017
2016
2015
Current Ratio
2.80
2.43
2.36
2.10
2.00
Acid Test Ratio
2.03
1.93
1.82
1.61
1.47
Days' Sales in Receivables
Merchandise Inventory Turnover
Debt Ratio
61
58
54
42
35
4.20
4.10
4.10
3.90
3.70
0.48
0.50
0.49
0.47
0.47
Times Interest Earned
4.60
4.80
5.90
5.70
6.00
Sales as a Percent of 1996 Sales
1.46
1.23
1.12
1.06
1.00
Net Income as a Percent of 1996
Income
1.31
1.20
1.10
1.06
1.00
Gross Profit Margin
Operating Expenses to Net Sales
Net Profit Margin
38.5%
38.8%
38.9%
40.0%
39.7%
11.4%
11.3%
11.5%
11.4%
11.7%
7.6%
8.6%
8.9%
9.4%
9.3%
Return on Total Assets
9.4%
9.6%
9.6%
10.0%
10.7%
Required:
Have Cena and Lesnar utilized its…
The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,|
2019-2015. The firm's total assets at the end of 2017 were $400,000.
An internal staff cost analyst has prepared the following financial data from the annual reports.
You have been hired as a consultant to help analyze the financial position.
2019
2018
2017
2016
2015
Current Ratio
2.80
2.43
2.36
2.10
2.00
Acid Test Ratio
2.03
1.93
1.82
1.61
1.47
Days' Sales in Receivables
Merchandise Inventory Turnover
Debt Ratio
61
58
54
42
35
4.20
4.10
4.10
3.90
3.70
0.48
0.50
0.49
0.47
0.47
Times Interest Earned
4.60
4.80
5.90
5.70
6.00
Sales as a Percent of 1996 Sales
1.46
1.23
1.12
1.06
1.00
Net Income as a Percent of 1996
Income
1.31
1.20
1.10
1.06
1.00
Gross Profit Margin
Operating Expenses to Net Sales
Net Profit Margin
38.5%
38.8%
38.9%
40.0%
39.7%
11.4%
11.3%
11.5%
11.4%
11.7%
7.6%
8.6%
8.9%
9.4%
9.3%
Return on Total Assets
9.4%
9.6%
9.6%
10.0%
10.7%
Required:
a. Explain the trend in liquidity.…
Eclipse Architects earned $1,800,000 during 20Y1 using 12 employees. During 20Y2, the firm reduced revenues to $1,440,000 and reduced the staff to nine employees.a. Determine the revenue per employee for each year.b. Interpret the results.
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 1PEACh. 12 - Prob. 1PEBCh. 12 - Prob. 2PEACh. 12 - Prob. 2PEBCh. 12 - Prob. 3PEACh. 12 - Prob. 3PEBCh. 12 - Prob. 4PEACh. 12 - Prob. 4PEBCh. 12 - Prior to liquidating their partnership, Parker and...Ch. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 6PEACh. 12 - Prob. 6PEBCh. 12 - Prob. 7PEACh. 12 - Eclipse Architects earned 1,800,000 during 2016...Ch. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Marvel Media, LLC, has three members: WLKT...Ch. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - The statement of members equity for Bonanza, LLC,...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Liquidating partnershipscapital deficiency Lewis,...Ch. 12 - Prob. 22ECh. 12 - Prob. 23ECh. 12 - Statement of partnership liquidation After closing...Ch. 12 - Prob. 25ECh. 12 - Prob. 26ECh. 12 - The accounting firm of Deloitte Touche is the...Ch. 12 - Prob. 28ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Statement of partnership liquidation After the...Ch. 12 - Prob. 6PACh. 12 - Prob. 1PBCh. 12 - Prob. 2PBCh. 12 - Prob. 3PBCh. 12 - Prob. 4PBCh. 12 - Statement of partnership liquidation After the...Ch. 12 - On August 3, the firm of Chapelle, Rock, and Pryor...Ch. 12 - Prob. 1CPCh. 12 - Prob. 2CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CP
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
- The following revenue data were taken from the December 31, 2017, General Electric annual report (10-K): For each segment and each year, calculate intersegment sales (another name for transfer sales) as a percentage of total sales. Using Microsoft Excel or another spreadsheet application, create a clustered column graph to show the 2016 and 2017 percentages for each division. Comment on your observations of this data. How might a division sales manager use this data?arrow_forwardFinancial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. A. In the correct format, prepare the income statement using the following information: B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. C. Prepare a short response to accompany the income statement that explains why uncontrollable costs are included in the income statement.arrow_forwardBlake McKenzie Tax Services is a company serving 72 clients (as of the beginning of last month) that is working on reorganizing its balanced scorecard. Currently, the company has the following performance metrics: online client satisfaction rating, client growth percentage (the number of total clients at the beginning of the current month compared to the number of total clients at the beginning of the prior month), market share, and profit margin. The company tracks these metrics from month to month. The companys target client growth percentage is 4% per month. Its target average online client satisfaction rating is 4.8 stars. Last month, the company noted the following data related to these metrics: a. Working together in teams, create strategic objectives that each of the companys four performance metrics might represent. b. Determine whether the company achieved its client growth percentage target last month. c. Suppose that last month, the company received 55 five-star reviews, 10 four-star reviews, 3 three-star reviews, 1 two-star review, and 1 one-star review (some clients did not submit a review). Determine whether the company met its average online client satisfaction rating target. d. Come up with at least one strategic initiative for the strategic objective of any performance metric target that you know the company did not meet last month.arrow_forward
- The following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K): For each segment and each year, calculate intersegment sales (another name for transfer sales) as a percentage of total sales, Using Microsoft Excel or another spreadsheet application, create a clustered column graph to show the 2016 and 2017 percentages for each division. Comment on your observations of this data. How might a division sales manager use this data?arrow_forwardDuring the current year, Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?arrow_forwardDuring the current year, Sokowski Manufacturing earned income of $319,026 from total sales of $6,163,900 and average capital assets of $10,644,990. What is the ROI? Round to the nearest to the hundredth, two decimal places and submit the answer in a percentage.arrow_forward
- Accordingly, 15% of rent, depreciation, and utility expenses pertain to the sales office while the rest pertains to the corporate office. Questions: How much is the net sales for the year? How much is the cost of sales for the year? How much is the gross profit for the year? How much is the net income for the year? Prepare a statement of comprehensive income. Prepare a financial statement.arrow_forwardDuring 2018, Evensen Network, Inc., which designs network servers, earned revenues of $900 million. Expenses totaled $580 million. Evensen collected all but $29 million of the revenues and paid $590 million on its expenses. Read the requirements LOADING... . Requirement a. Under accrual accounting, what amount of revenue should Evensen report for 2018? How does the revenue principle help to answer this question? The amount of revenue that should be reported for the year is $ 900 million. How does the revenue principle help to answer this question? The revenue principle says to record revenue when it has been (collected, earned, recorded), regardless of when (cash is collected, revenue is earned, sold inventory is delivered).Therefore, the amount of revenue reported is what Evensen (collected, earned ,paid). ()= blank. inside are the word choicesarrow_forwardDuring its first month of operations, Huxley Corporation provided $11,440 of services to it customers. Its costs included rent of $2,260 and salaries and wages totaling $5,150. At the end of the month, the board of directors approved a dividend of $800. What is the total amount of revenue generated by the company during the month? Explain how to work this outarrow_forward
- Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $724,000 in service revenue. Their total cost (fixed and variable) per client was $2,600 and they served 110 clients during the year. If operating expenses for the year were $302,000 what was their net income? Park and West, LLC Income Statement For Year Ending 2019 Service Revenue Cost of Services Gross Profit Operating Expenses Operating Incomearrow_forwardBrookbury Accounting completed 150 tax returns in the month of March. Its Effective Capacity is 170 tax returns and its Design Capacity is 175 tax returns. Calculate the Efficiency and Utilization for Brookbury Accounting. What do these two numbers tell you?arrow_forwardGRB Ltd has several product lines with a manager in charge of each product line. The managers are paid a bonus based on the net income generated by their product line. Rubica (the CEO of GRB Ltd) was going through the financial reports of the 2nd quarter of 2021 to analyse the performance of the product lines. For 'Sweets' one of the largest product lines of GRB Ltd, Rubica noted that while the sales declined from $800,000 in quarter 1 to $600,000 in quarter 2, the product line manager of Sweets received a bonus larger than the 1st quarter. The manager of Sweets division was eligible for a higher bonus due to an operating profit increase from $90,000 in the 1st quarter to $120,000 in the 2nd quarter. Rubica wondered how the product line manager was entitled to a higher bonus with a decline in sales. Rubica also wants to know how net income increased with a decline in sales. Rubica found the following data from the financial reports of 'Sweets': Particulars Quarter 2 Quarter 1 Units…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License