Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 13, Problem 13SP
1.
Summary Introduction
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
To Calculate:
Gross Margin (with or without service revenue) and net profit margin ratio.
1.
Expert Solution
Answer to Problem 13SP
| Gross profit Margin (L/B)*100 | 24.8% |
| Gross profit Margin (M/C)*100 | 68.1% |
| Net Profit Margin (E/C)*100 | 42.8% |
Explanation of Solution
| Computer Services Revenue (A) | 25307 |
| Net Sales (B) | 18693 |
| Total Sales and revenue (C) | 44000 |
| Cost of goods sold (D) | 14052 |
| Net Income (E) | 18833 |
| Quick Assets (F) | 90924 |
| Current Assets (G) | 95568 |
| Total Assets (H) | 120268 |
| Current liabilities (I) | 875 |
| Total Liabilities (J) | 875 |
| Total Equities (K) | 119393 |
| Gross Profit (without service revenue)(B-D)= L | 4641 |
| Gross Profit (with service revenue) (C-D)= M | 29948 |
| Gross profit Margin (L/B)*100 | 24.8% |
| Gross profit Margin (M/C)*100 | 68.1% |
| Net Profit Margin (E/C)*100 | 42.8% |
2.
Summary Introduction
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
To Calculate:
2.
Expert Solution
Answer to Problem 13SP
| Current Ratio (G/I) | 109.2 |
| Quick Ratio (F/I) | 103.9 |
Explanation of Solution
| Computer Services Revenue (A) | 25307 |
| Net Sales (B) | 18693 |
| Total Sales and revenue (C) | 44000 |
| Cost of goods sold (D) | 14052 |
| Net Income (E) | 18833 |
| Quick Assets (F) | 90924 |
| Current Assets (G) | 95568 |
| Total Assets (H) | 120268 |
| Current liabilities (I) | 875 |
| Total Liabilities (J) | 875 |
| Total Equities (K) | 119393 |
| Current Ratio (G/I) | 109.2 |
| Quick Ratio (F/I) | 103.9 |
3.
Summary Introduction
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
To Calculate:
Debt ratio and Equity ratio.
3.
Expert Solution
Answer to Problem 13SP
| Debt ratio (J/H)*100 | 0.7% |
| Equity ratio (K/H)*100 | 99.3% |
Explanation of Solution
| Computer Services Revenue (A) | 25307 |
| Net Sales (B) | 18693 |
| Total Sales and revenue (C) | 44000 |
| Cost of goods sold (D) | 14052 |
| Net Income (E) | 18833 |
| Quick Assets (F) | 90924 |
| Current Assets (G) | 95568 |
| Total Assets (H) | 120268 |
| Current liabilities (I) | 875 |
| Total Liabilities (J) | 875 |
| Total Equities (K) | 119393 |
| Debt ratio (J/H)*100 | 0.7% |
| Equity ratio (K/H)*100 | 99.3% |
4.
Summary Introduction
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
To Calculate:
Percent of current assets and long term assets.
4.
Expert Solution
Answer to Problem 13SP
| Current assets percentage (G/H)*100 | 79.5% |
| Long term assets percentage (N/H)*100 | 20.5% |
Explanation of Solution
| Computer Services Revenue (A) | 25307 |
| Net Sales (B) | 18693 |
| Total Sales and revenue (C) | 44000 |
| Cost of goods sold (D) | 14052 |
| Net Income (E) | 18833 |
| Quick Assets (F) | 90924 |
| Current Assets (G) | 95568 |
| Total Assets (H) | 120268 |
| Current liabilities (I) | 875 |
| Total Liabilities (J) | 875 |
| Total Equities (K) | 119393 |
| Long term Assets (N)= H-G | 24700 |
| Current assets percentage (G/H)*100 | 79.5% |
| Long term assets percentage (N/H)*100 | 20.5% |
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Chapter 13 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 13 - Explain the difference between financial reporting...Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Which of the following gains or losses would...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 10ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Selected comparative financial statements of...Ch. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - Prob. 13SPCh. 13 - Prob. 2FSACh. 13 - Prob. 3FSACh. 13 - Prob. 1BTNCh. 13 - Prob. 5BTN
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