Financial Accounting: Information for Decisions
Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158809
Author: Wild, John
Publisher: MCGRAW-HILL HIGHER 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
Check Mark

Answer to Problem 13SP

    Gross profit Margin (L/B)*10024.8%
    Gross profit Margin (M/C)*10068.1%
    Net Profit Margin (E/C)*10042.8%

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)= L4641
    Gross Profit (with service revenue) (C-D)= M29948
    Gross profit Margin (L/B)*10024.8%
    Gross profit Margin (M/C)*10068.1%
    Net Profit Margin (E/C)*10042.8%

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:

Current ratio and acid test ratio.

2.

Expert Solution
Check Mark

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
Check Mark

Answer to Problem 13SP

    Debt ratio (J/H)*1000.7%
    Equity ratio (K/H)*10099.3%

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)*1000.7%
    Equity ratio (K/H)*10099.3%

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
Check Mark

Answer to Problem 13SP

    Current assets percentage (G/H)*10079.5%
    Long term assets percentage (N/H)*10020.5%

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-G24700
    Current assets percentage (G/H)*10079.5%
    Long term assets percentage (N/H)*10020.5%

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Chapter 13 Solutions

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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