The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2016 Income Statement Sales Revenue Cost of Goods Sold $ 130,000 $119,000 60,000 56,000 Gross Profit Operating Expenses Interest Expense 70,000 42,000 63,000 39,000 3,000 3,000 Income before Income Tax Expense 25,000 21,000 Income Tax Expense (30%) 7,500 6,300 $ 17,500 $ 14,700 Net Income Balance Sheet $ 50,147 $ 17,700 42,000 28,000 85,000 Cash Accounts Receivable, Net Inventory Property and equipment, Net 27,000 35,000 75,000 Total Assets $ 187,147 $172,700 $ 24,847 $ 22,800 Accounts Payable Income Taх Раyable Note Payable, Long-Term 900 400 30,000 30,000 Total Liabilities 55,747 53,200 93,000 93,000 38,400 Contributed Capital (9,300 shares) Retained Earningst 26,500 Total Liabilitien and Shareholders' Equity $ 187,147 $ 172,700 One-half of all sales are on credit. 'During 2017, cash dividends amounting to $5,600 were declared and paid. Required: 1-a. Compute the gross profit percentage in 2017 and 2016. (Round your answers to 1 decimal place.) Gross Profit Percentage 53.9 % 2017 2016 52.9 % 1-b. Is the trend going in the right direction? • Yes O No 2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) Net Profit Margin 2017 13.5 2016 12.4 % 2-b. Is the trend going in the right direction? O No • Yes 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) Earnings per Share 2017 $ 2016 1.88 1.58 3-b. Does the trend look good or bad? • Good O Bad 2-b. Is the trend going in the right direction? ONo Yes 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) Earnings per Share 2017 S 2016 1.68 1.58 3-b. Does the trend look good or bad? Good O Bad 4-a. Shareholders' equity totalled $100,000 at the end of 2015. Compute the return on equity (ROE) ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Return on Equity 即17 2016 4-b. Is the trend going in the right direction? O Yes ONo S-a. Net property and equipment totaled $90,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Fixed Asset Turnever 2017 2016 5-b. Is the trend going in the right direction? ONo O Yes 6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Dubt-to Asseta 2017 2016 6-b. is debt providing financing for a larger or smaller proportion of the company's asset growth? O Larger proportion OSmaller proportion 7.a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Times Interest Earned imes 2017 2016 imes 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? O Bad O Good 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $19.50. After the release of its 2016 financial statements, the company's share price was $17.00 per share. Compute the PIE ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Price Earnings 2017 2016 8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? OLess optimistic O More optimistic The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2016 Income Statement Sales Revenue Cost of Goods Sold $ 130,000 $119,000 60,000 56,000 Gross Profit Operating Expenses Interest Expense 70,000 42,000 63,000 39,000 3,000 3,000 Income before Income Tax Expense 25,000 21,000 Income Tax Expense (30%) 7,500 6,300 $ 17,500 $ 14,700 Net Income Balance Sheet $ 50,147 $ 17,700 42,000 28,000 85,000 Cash Accounts Receivable, Net Inventory Property and equipment, Net 27,000 35,000 75,000 Total Assets $ 187,147 $172,700 $ 24,847 $ 22,800 Accounts Payable Income Taх Раyable Note Payable, Long-Term 900 400 30,000 30,000 Total Liabilities 55,747 53,200 93,000 93,000 38,400 Contributed Capital (9,300 shares) Retained Earningst 26,500 Total Liabilitien and Shareholders' Equity $ 187,147 $ 172,700 One-half of all sales are on credit. 'During 2017, cash dividends amounting to $5,600 were declared and paid. Required: 1-a. Compute the gross profit percentage in 2017 and 2016. (Round your answers to 1 decimal place.) Gross Profit Percentage 53.9 % 2017 2016 52.9 % 1-b. Is the trend going in the right direction? • Yes O No 2-a. Compute the net profit margin for 2017 and 2016. (Round your answers to 1 decimal place.) Net Profit Margin 2017 13.5 2016 12.4 % 2-b. Is the trend going in the right direction? O No • Yes 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) Earnings per Share 2017 $ 2016 1.88 1.58 3-b. Does the trend look good or bad? • Good O Bad 2-b. Is the trend going in the right direction? ONo Yes 3-a. Compute the earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) Earnings per Share 2017 S 2016 1.68 1.58 3-b. Does the trend look good or bad? Good O Bad 4-a. Shareholders' equity totalled $100,000 at the end of 2015. Compute the return on equity (ROE) ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Return on Equity 即17 2016 4-b. Is the trend going in the right direction? O Yes ONo S-a. Net property and equipment totaled $90,000 at the end of 2015. Compute the fixed asset turnover ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Fixed Asset Turnever 2017 2016 5-b. Is the trend going in the right direction? ONo O Yes 6-a. Compute the debt-to-assets ratios for 2017 and 2016. (Round your answers to 2 decimal places.) Dubt-to Asseta 2017 2016 6-b. is debt providing financing for a larger or smaller proportion of the company's asset growth? O Larger proportion OSmaller proportion 7.a. Compute the times interest earned ratios for 2017 and 2016. (Round your answers to 1 decimal place.) Times Interest Earned imes 2017 2016 imes 7-b. Does the outcome of ratio in 2017 appears to be good or bad for the company? O Bad O Good 8-a. After Pinnacle Plus released its 2017 financial statements, the company's shares were trading at $19.50. After the release of its 2016 financial statements, the company's share price was $17.00 per share. Compute the PIE ratios for both years. (Round intermediate calculations to 2 decimal places and final answers to 1 decimal place.) Price Earnings 2017 2016 8-b. Does it appear that investors have become more (or less) optimistic about Pinnacle's future success? OLess optimistic O More optimistic
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data: Required: 1. Complete the two final columns shown beside each item in Golden...
-
The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data: Required: 1. Complete the two final columns shown beside each item in Pinnacle...
-
The comparative financial statements prepared at December 31, 2013, for Tiger Audio showed the following summarized data: Required: 1. Complete the two final columns shown beside each item in Tiger...
-
At one time the Thames River in England supported an abundant community of fish. Pollution then destroyed all the fish in a 40-mile stretch near its mouth for a 45-year period beginning in 1915....
-
Becky Schalkoff, a New Orleans criminal psychologist, specializes in treating patients who are phobic, afraid to leave their homes. The following table indicates how many patients Dr. Schalkoff has...
-
A total of 5000 mechanical subassemblies are needed annually on a final assembly line. The subassemblies can be obtained in one of three ways: (1) Make them in one of three plants owned by the...
-
Repeat Example 7.3 using \(10 \mathrm{~kg} / \mathrm{h}\) of solvent in each stage. Data From Example 7.3:- The feed of Example 7.2 is extracted three times with pure chloroform at 298 K, using 8...
-
Weather Balloons, Inc., makes reusable weather-detecting balloons. Because of a recent recession, management has ordered that standard costs be recomputed. New direct materials price standards are...
-
On a private flight with capacity for 150 people, $800,000 per person is charged, plus $25,000 for each unsold seat on the plane. How many people must travel on the plane and what will be the price...
-
Daniel Merrill is the manager of an airport gift shop, Merrill News and Gifts. From the following data, Mr. Merrill wants a cash budget showing expected cash receipts and disbursements for the month...
-
How to complete this. What formulas do you use to get the calculations? Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like...
-
Express the logarithm log_(8)(75) using the change of base formula in natural logarithms or common logarithms. Then evaluate, rounding to four decimal places. Change of Base (no decimals ):...
-
According to Newton's law of cooling, the time rate of change of temperature Tb (t) of a body immersed in a medium of temperature Tm(t) is proportional to the difference Tm (t) - T(t). That is, dT(t)...
-
Solve the system of equations whose augmented matrix A is given by: 10-90 5 01 4 0-3 A = 00 0 1-7 10 0 0 02
-
A box (m) of mass 59.9 kg is pulled across a rough floor with a force (F) of 288 N. The acceleration was determined to be 1.2 m/s2. Determine the coefficient of friction Record value to nearest...
-
Number of rooms 110 Days in a year 365 Total number of rooms available per year ? Revenues per department Rooms 4,000,000 Food and beverages 1,500,000 Other departments 500,000 Total Revenue ?...
-
DSW Racing has annual credit sales of $800,000 on terms of net/30. A proposal to offer terms of 1/10, n/30 is being considered. The proposed discount is not expected to increase sales, but is...
-
Write the expression in radical notation. Then evaluate the expression when the result is an integer. 23 -1/2
-
Use the Quadratic Formula to solve the quadratic equation? 1. x2 2x + 10 = 0 2. x2 + 6x + 34 = 0 3. 4x2 + 4x + 7 = 0 4. 6x2 + 3x + 27 = 0
-
What are the dimensions of a rectangular tract of land when its perimeter is 44 kilometers and its area is 120 square kilometers?
-
Write the first five terms of the arithmetic sequence. 1. a1 = 5, d = 6 2. a1 = 5, d = - 3/4 3. a1 = 2, a12 = 64 4. a4 = 16, a10 = 46
-
In 1984, the number of German marks required to buy one U.S. dollar was 1.80. In 1987, the U.S. dollar was worth 2.00 marks. In 1992, the dollar was worth 1.50 marks. In 1997, the dollar was again...
-
Todays spot rate is S 0 $ = $0.009057355. The 90-day forward rate is F 1 $ = $0.008772945. a. Calculate the forward premium on Japanese yen in basis points and as a percentage premium or discount...
-
Describe locational, triangular, and covered interest arbitrage.
Study smarter with the SolutionInn App