Presented below is an incomplete income statement and an incomplete comparative balance sheet of Bondi Corporation. Additional
Question:
Presented below is an incomplete income statement and an incomplete comparative balance sheet of Bondi Corporation.
Additional information:
1. The receivables turnover for 2014 is 10 times.
2. All sales are on account.
3. The profit margin for 2014 is 14.5%.
4. Return on assets is 20% for 2014.
5. The current ratio on December 31, 2014, is 3.0.
6. The inventory turnover for 2014 is 4.2 times.
Instructions
Compute the missing information given the ratios above. Show computations. (Note: Start with one ratio and derive as much information as possible from it before trying another ratio. List all missing amounts under the ratio used to find the information.)
Bondi Corporation Income Statement For the Year Ended December 31, 2014 Net sales Cost of goods sold Gross proft Operating expenses Income from operations Othe 10,500,000 1,500,000 r expenses and losses Interest expense Income before income taxes Income tax expense Net income 550,000 Bondi Corporation Balance Sheets December 31 Assets 2014 2013 Current assets Cash Accounts receivable (net) Inventory 480,000 375,000 950,000 1,720,000 3,045,000 4,455,000 $7,500,000 Total current assets Plant assets (net) Total assets 4,620,000 Assets Liabilities and Stockholders' Equity Current liabilities Long-term notes payable 2014 2013 825,000 3,300,000 4,125,000 3,000,000 375,000 3,375,000 $7,500,000 Total liabilities Common stock, $1 par Retained earnings 3,000,000 400,000 3,400,000 Total stockholders' equity Total labilities and stockholders' equity2
Step by Step Answer:
Receivables turnover 10 Average receivables 1050000 1050000 Net receivables 123114 950000 2100000 Ne...View the full answer
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
An incomplete income statement and an incomplete comparative balance sheet of Deines Corporation are presented below. DEINES CORPORATION Income Statement For the Year Ended December 31, 2015 Net...
-
Presented below is an incomplete income statement and incomplete comparative statements of financial position of Bondi ASA. BONDI ASA Income Statement For the Year Ended December 31, 2017 Net sales...
-
An incomplete income statement and an incomplete comparative balance sheet of Deines Corporation are presented below. Additional information: 1. The accounts receivable turnover for 2017 is 10 times....
-
Write an application that works as a comparator. Your program should read two numbers from the user and print 0 if they are equal to each other, 1 if the first number is greater, and 1 if the second...
-
On March 31, 2012, Big Boats Company entered into a contract with Vacations Unlimited to produce a state-of-the-art cruise ship, to be completed within three years. Big Boats estimated the total cost...
-
A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 130 units is expected by the end of the plan. The demand for each...
-
Robert Pierre and Jon LeFranc are assembly line workers employed by Manufacturing Inc., a manufacturing company in Dayton, Ohio. Robert and Jon are good friends as they grew up in the same town in...
-
Multiple Choice. Choose the best answer. 1. Federal statutes assign responsibility for establishing and maintaining a sound financial structure for the federal government to which of the following:...
-
15. 16. What is the final product (major) 'A' in the given reaction? CH3 OH CH CH3 HCI + 'A' (major product) CH3 CH3 Cl CH (B) CH3 CH2-CH3 (A) CH3 CH (C) shiks CH=CH2 (D) Which of the following...
-
Larsen Company makes fertilizer v. a Midwestern state. The company has nearly completed a new plant that will produce twice as much as the old plant which is being scapped. Swen Larsen, the owner,...
-
The comparative statements of Beulah Company are presented below. Additional data: The common stock recently sold at $19.50 per share. Instructions Compute the following ratios for 2014. (a) Current....
-
Violet Bick Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2014. The 2014 operating results for the...
-
What is numerical control?
-
If you were asked to design a set of incentives to induce expatriates to accept an assignment in a risky area, how would you set this up? And once the expatriate accepts the assignment, how would you...
-
What can a multinational firm do to reduce the level of stress that expatriates may feel as a result of real or perceived terrorist threats? Explain. One of the concomitants of international...
-
Go to the Student Edition on this textbooks Web site. In Chapter 10, find Stop Smoking and Save. This calculator allows you to estimate how much you will accumulate over several years if you stop...
-
What communication and HR practices does New Belgium use to keep employees in the loop so they feel involved with the company and part of a community? Kim Jordan and Jeff Lebesch, the husband and...
-
Do you think offering incentives to key contributors motivates them as well as other employees to do a better job? Why or why not? If not, what alternative ways do you propose? Explain....
-
Why a case study on Amazon? Surely everyone knows about Amazon and what it does? Yes, well, thats maybe true, but this case goes under the surface to review some of the insider secrets of Amazons...
-
Create a data model for one of the processes in the end-of-chapter Exercises for Chapter 4. Explain how you would balance the data model and process model.
-
Derive the rate laws for the following enzymatic reactions and sketch and compare, where possible. a. E + S E S P + E b. E + S E S P + E c. E + S1 E S1 E S1 + S2 E S1S2 E S1S2 P + E d....
-
The following T account is a summary of the cash account of Wiegman Company. What amount of net cash provided (used) by financing activities should be reported in the statement of cashflows? Cash...
-
Piekarski Corporation had the following transactions. 1. Issued $200,000 of bonds payable. 2. Paid utilities expense. 3. Issued 500 shares of preferred stock for $45,000. 4. Sold land and a building...
-
You are provided with the following transactions that took place during a recent fiscal year. (a) Recorded depreciation expense on the plant assets.(b) Recorded and paid interest expense.(c) Recorded...
-
What are some issues that could come up during the research and development stage of a new product that would be a reason to delay it's launch or give up on the idea completely?
-
2) [25 pnts] The manager of the marketing department of Supersale Groceries believes that the male customers are buying in larger quantities compared to the female customers. Also the manager thinks...
-
1) A fully loaded Boeing 747 with all engines at full thrust accelerates at 2.6 m/s. Its minimum takeoff speed is 70 m/s. Here, suffices i and f represent the initial and final points for the...
Study smarter with the SolutionInn App