The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following summarized data: Year 2 Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst $379,790* $320,000 321,700 270,000 58,090 50,000 39,220 35,000 15,000 5,100 9,900 18,870 6,690 $ 12,180 $ $ 8, 200 19,000 40,000 23,000 $ 90,200 $ 15,350 36, 810 24,000 $ 18,500 35,900 24,000 17,480 11,800 $ 93,640 $ 90,200 Year 1 4,170 $ 15,990 46, 050 27,430 $ 93,640 *One-third was credit sales. †During Year 2, cash dividends amounting to $6,500 were declared and paid. Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity Component Percentages Year 2 Jeeee % 0% % 0 % 0 % je deje a je je je je ee % % 0% % 0% 2-a. Percentage markup on sales. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) Average percentage 2-b. Income tax rate. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) Average income tax Net profit margin ratio 2-c. Net profit margin ratio. Was it a good or poor indicator of performance? (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) % Percentage % 2-d. Percentage of total resources invested in property, plant, and equipment. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) % Debt-to-equity ratio % 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) 2-f. Return on assets. Assume that long-term debt increased to $36,810 in month 1 of year 2. (Round intermediate calculations to 3 decimal places and percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Return on assets 2-g. Return on equity. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Return on equity % Financial leverage percentage % 2-h. Financial leverage percentage. Did borrowing from creditors benefit shareholders? (Round intermediate calculations and final answer to 2 decimal places.) % The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following summarized data: Year 2 Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst $379,790* $320,000 321,700 270,000 58,090 50,000 39,220 35,000 15,000 5,100 9,900 18,870 6,690 $ 12,180 $ $ 8, 200 19,000 40,000 23,000 $ 90,200 $ 15,350 36, 810 24,000 $ 18,500 35,900 24,000 17,480 11,800 $ 93,640 $ 90,200 Year 1 4,170 $ 15,990 46, 050 27,430 $ 93,640 *One-third was credit sales. †During Year 2, cash dividends amounting to $6,500 were declared and paid. Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity Component Percentages Year 2 Jeeee % 0% % 0 % 0 % je deje a je je je je ee % % 0% % 0% 2-a. Percentage markup on sales. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) Average percentage 2-b. Income tax rate. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) Average income tax Net profit margin ratio 2-c. Net profit margin ratio. Was it a good or poor indicator of performance? (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) % Percentage % 2-d. Percentage of total resources invested in property, plant, and equipment. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) % Debt-to-equity ratio % 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) 2-f. Return on assets. Assume that long-term debt increased to $36,810 in month 1 of year 2. (Round intermediate calculations to 3 decimal places and percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Return on assets 2-g. Return on equity. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Return on equity % Financial leverage percentage % 2-h. Financial leverage percentage. Did borrowing from creditors benefit shareholders? (Round intermediate calculations and final answer to 2 decimal places.) %
Expert Answer:
Answer rating: 100% (QA)
1 Percentage components for 2017 Particulars Sales Revenue Cost of Sales Gross Margin Op... View the full answer
Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild
Posted Date:
Students also viewed these accounting questions
-
(1) Given A and i. (1a) Find the equivalent amount at the end of year 1. (1b) Find the equilvalent amount at the end of year B. (2) Given X and i, Find the annual equivalent A from year S to 8. *...
-
Determine CPI, ETC (1), and EAC. Activity Total PV 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 6 6 2 20 10 10 3 30 9 6 6 6 3 4 20 8 2 5 5 5 16 4 4 4 4 6 18 9 9 7 8 4 4 Status Report: Ending Period 5 Task %...
-
Select any Company and get a copy of its annual report. Just write an outline of the company's annual report. The outline must contain the following: 1. Introduction 2. Background 3. Liquidity Ratios...
-
What is the main reason the Bike Company needs to report figures separately for its various areas of operation? Choose the correct answer. A Sales requires these figures to plan sales activities. B...
-
Natural gas, we assume methane, is burned with 200% theoretical air and the reactants are supplied as gases at the reference temperature and pressure. The products are flowing through a heat...
-
An athlete signs a five-year endorsement deal with a prominent sponsor. Under this deal the athlete will receive \($5,000\) each year for the first three years and \($6,500\) each year for the final...
-
For pumping molasses, it is preferable to employ (a) reciprocating pump (b) centrifugal pump (c) open impeller pump (d) rotary pump
-
The Makonsel Company is a fully integrated company that both produces goods and sells them at its retail outlets. After production, the goods are stored in the companys two warehouses until needed by...
-
To estimate the value of Paul's investment at maturity, calculate the number of years until Paul will go to university, and use compound interest to calculate the value of Paul's investment at that...
-
1. Does Steve need additional information from Iverstine and Walker? 2. What would you recommend? In 1979, Steve Blake founded Blake Electronics in Long Beach, California, to manufacture resistors,...
-
Blondie Inc. has annual sales of $13m and cost of goods sold of $8m. Its average inventory is $0.6m. What is the Inventory Days on Hand? O 27.4 days O 10.4 days O 16.8 days O 20.9 days
-
The electrostatic work done on a particle carrying charge \(q\) as the particle travels from point \(A\) to point \(B\) in an electric field is \(W\). How much electrostatic work is done on a...
-
Suppose you want to determine the amount of charge on a spherical shell. You start out by surrounding the shell with a cylindrical Gaussian surface. Is it possible to use the flux everywhere on the...
-
A very long, solid, positively charged cylinder has a radius \(R\) and is made of a nonconducting material. The nonuniform volume charge density is given by \(ho=+a r\), where \(r\) is the radial...
-
An isolated system consists of one object carrying charge \(+q\) and one object carrying charge \(-q\). Are all the electric field lines for the system contained inside some boundary?
-
The electrostatic potential in some region of space is given by \(V(x)=A+B x\), where \(V\) is in volts, \(x\) is in meters, and \(A\) and \(B\) are positive constants. Determine the magnitude of the...
-
Savings deposit in closed bank IOU from an employee Preferred redemption fund Total Additional information: 50,000 150,000 400.000 P4,000,000 a) Included in the demand deposit of P2,200,000 was a...
-
The figure shows a bolted lap joint that uses SAE grade 8 bolts. The members are made of cold-drawn AISI 1040 steel. Find the safe tensile shear load F that can be applied to this connection if the...
-
Volvo Group reports the following information for its product warranty costs as of December 31, 2014, along with provisions and utilizations of warranty liabilities for the year ended December 31,...
-
Peugeot S.A. reports the following condensed financial information for the year ended December 31, 2014 (Euros in millions). Prepare its statement of cash flows under the indirect method. (822) 2,530...
-
On October 29, 2015, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any...
-
To what amount will the following investments accumulate? a. $6,000 invested for 12 years at 12 percent compounded annually b. $7,500 invested for 8 years at 8 percent compounded annually c. $6,400...
-
What is the present value of the following future amounts? a. $805 to be received 10 years from now discounted back to the present at 10 percent b. $376 to be received 5 years from now discounted...
-
At what annual rate would the following have to be invested? a. \($820\) to grow to \($1,988.12\) in 13 years b. \($320\) to grow to \($423.10\) in 6 years c. \($57\) to grow to \($290.30\) in 18...
Study smarter with the SolutionInn App