Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend. Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends. Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is inadequate cash availability in the company. To Journalize: The transactions.

Question

Financial statements for Askew Industries for 2024 are shown below (in thousands): 2024 Income Statement Net sales $ 8,600 Cost of goods sold (6,050) Gross profit 2,550 Operating expenses (1,850) Interest expense (100) Income tax expense (240) Net income $ 360 Comparative Balance Sheets December 31 2024 2023 Assets Cash $ 500 $ 400 Accounts receivable 500 300 Inventory 700 500 Property, plant, and equipment (net) 1,000 1,100 $ 2,700 $ 2,300 Liabilities and Shareholders’ Equity Current liabilities $ 500 $ 250 Bonds payable 900 900 Common stock 500 500 Retained earnings 800 650 $ 2,700 $ 2,300 Calculate the following ratios for 2024. Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.

Answer 1

Question

Chapter 13, Problem 13.13EX

To determine

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.

Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is inadequate cash availability in the company.

To Journalize: The transactions.

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Financial statements for Askew Industries for 2024 are shown below (in thousands): 2024 Income Statement Net sales $ 8,600 Cost of goods sold (6,050) Gross profit 2,550 Operating expenses (1,850) Interest expense (100) Income tax expense (240) Net income $ 360 Comparative Balance Sheets December 31 2024 2023 Assets Cash $ 500 $ 400 Accounts receivable 500 300 Inventory 700 500 Property, plant, and equipment (net) 1,000 1,100 $ 2,700 $ 2,300 Liabilities and Shareholders’ Equity Current liabilities $ 500 $ 250 Bonds payable 900 900 Common stock 500 500 Retained earnings 800 650 $ 2,700 $ 2,300 Calculate the following ratios for 2024. Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.

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