(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2013 and 2012 and comment on the same.

Question

Want to see the full answer?

Answer 1

Question

Chapter 13, Problem 4E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To compute:

The net profit margin for 2012 and 2013 and state if the company was successful in controlling its operating expenses by comparing the data of both the years.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

To determine

(d)

Introduction:

Return on equity measure the profit earned using capital provided by the shareholders of a firm or in other words we can say that ROI measures the effectiveness with which a company uses the assets to create profits.

To calculate:

The return on equity for 2012 and 2013 and comment on the same.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

CODE 14 On August 1, 2010, Cheryl Newsome established Titus Realty, which completed the following transactions during the month: a. Cheryl Newsome transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $25,000. b. Paid rent on office and equipment for the month, $2,750. c. Purchased supplies on account, $950. d. Paid creditor on account, $400. c. Earned sales commissions, receiving cash, $18,100. f. Paid automobile expenses (including rental charge) for month, $1,000, and miscel- laneous expenses, $600. g. Paid office salaries, $2,150. h. Determined that the cost of supplies used was $575. i. Paid dividends, $2,000. REQUIREMENTS: 1. Determine increase - decrease of each account and new balance 2. Prepare 3 F.S: Income statement; Retained Earnings Statement; Balance Sheet Scanned with CamScanner

Assume that TDW Corporation (calendar-year-end) has 2024 taxable income of $952,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Machinery Computer equipment Furniture Total Placed in Service September 12 February 10 April 2 Basis $ 2,270,250 263,325 880,425 $ 3,414,000 b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2024 on the assets it placed in service in 2024, assuming no bonus depreciation? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Maximum total depreciation deduction (including §179 expense)

Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Date Placed in Asset Machinery Service October 25 Original Basis $ 120,000 Computer equipment February 3 47,500 Used delivery truck* August 17 Furniture April 22 60,500 212,500 The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation and elects out of §179 expense?

Answer 2

Question

Chapter 13, Problem 4E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To compute:

The net profit margin for 2012 and 2013 and state if the company was successful in controlling its operating expenses by comparing the data of both the years.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

To determine

(d)

Introduction:

Return on equity measure the profit earned using capital provided by the shareholders of a firm or in other words we can say that ROI measures the effectiveness with which a company uses the assets to create profits.

To calculate:

The return on equity for 2012 and 2013 and comment on the same.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 13, Problem 4E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To compute:

The net profit margin for 2012 and 2013 and state if the company was successful in controlling its operating expenses by comparing the data of both the years.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

To determine

(d)

Introduction:

Return on equity measure the profit earned using capital provided by the shareholders of a firm or in other words we can say that ROI measures the effectiveness with which a company uses the assets to create profits.

To calculate:

The return on equity for 2012 and 2013 and comment on the same.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 4E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To compute:

The net profit margin for 2012 and 2013 and state if the company was successful in controlling its operating expenses by comparing the data of both the years.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

To determine

(d)

Introduction:

Return on equity measure the profit earned using capital provided by the shareholders of a firm or in other words we can say that ROI measures the effectiveness with which a company uses the assets to create profits.

To calculate:

The return on equity for 2012 and 2013 and comment on the same.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem 4E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To compute:

The net profit margin for 2012 and 2013 and state if the company was successful in controlling its operating expenses by comparing the data of both the years.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

To determine

(d)

Introduction:

Return on equity measure the profit earned using capital provided by the shareholders of a firm or in other words we can say that ROI measures the effectiveness with which a company uses the assets to create profits.

To calculate:

The return on equity for 2012 and 2013 and comment on the same.

Answer 6

Chapter 13, Problem 4E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

Answer 7

Chapter 13, Problem 4E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

Answer 8

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To compute:

The net profit margin for 2012 and 2013 and state if the company was successful in controlling its operating expenses by comparing the data of both the years.

Answer 9

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To compute:

The net profit margin for 2012 and 2013 and state if the company was successful in controlling its operating expenses by comparing the data of both the years.

Answer 10

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

Answer 11

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

Answer 12

To determine

(d)

Introduction:

Return on equity measure the profit earned using capital provided by the shareholders of a firm or in other words we can say that ROI measures the effectiveness with which a company uses the assets to create profits.

To calculate:

The return on equity for 2012 and 2013 and comment on the same.

Answer 13

To determine

(d)

Introduction:

Return on equity measure the profit earned using capital provided by the shareholders of a firm or in other words we can say that ROI measures the effectiveness with which a company uses the assets to create profits.

To calculate:

The return on equity for 2012 and 2013 and comment on the same.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 13 - Prob. 1Q Ch. 13 - Prob. 2Q Ch. 13 - What is ratio analysis? Why is it useful? Ch. 13 - What benchmarks are commonly used for interpreting...Ch. 13 - Prob. 5Q Ch. 13 - Why are some analyses called horizontal and others...Ch. 13 - Slow Cellar’s current ratio increased from 1.2 to...Ch. 13 - From last year to this year. Colossal Company’s...Ch. 13 - From last year to this year, Berry Barn reported...Ch. 13 - Prob. 10Q

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2013 and 2012 and comment on the same.

Solution Summary: The author explains that gross profit percentage helps the company to compare gross margin to the net sales. Asset turnover ratio determines a company's ability to generate sales with fixed assets.

Videos

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

Want to see the full answer?

Chapter 13 Solutions

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2013 and 2012 and comment on the same.

Solution Summary: The author explains that gross profit percentage helps the company to compare gross margin to the net sales. Asset turnover ratio determines a company's ability to generate sales with fixed assets.

Videos

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2013 and 2012 and comment on the same.

(c) Introduction: Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets. To calculate: The fixed asset turnover ratio for 2012 and 2013 and comment on the same.

Want to see the full answer?

Chapter 13 Solutions

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2013 and 2012 and comment on the same.

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2012 and 2013 and comment on the same.