For each ratio, select the building block of financial statement analysis to which it best relates....
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For each ratio, select the building block of financial statement analysis to which it best relates. 1. Debt ratio 2. Current ratio 3. Return on equity 4. Days' sales in inventory 5. Total asset turnover 6. Accounts receivable turnover 7. Dividend yield 8. Return on total assets 9. Equity ratio Liquidity and efficiency Profitability Profitability Solvency Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. Note: Round your percentage answers to 1 decimal place. GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 745,000 $ 690,000 Cost of goods sold 560,000 293,200 Gross profit 185,000 396,800 Operating expenses 128,000 263,600 Net income $ 57,000 $ 133,200 Income Statement Reason for Decline in Net Income > Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Using the common-size percents, which item is most responsible for the decline in net income? Using the common-size percents, which item is most responsible for the decline in net income? < Income Statement Reason for Decline in Net Income > 3 Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow. Common-Size Percents Trend Percents oints Current Year 2 Years 1 Year Ago Sales 100.0% 100.0% Cost of goods sold 63.4 Operating expenses 14.3 61.2 13.8 Ago 100.0% 56.2 14.1 Current Year 104.4% 117.8 105.9 2 Years 1 Year Ago 103.2% 112.4 Ago 100.0% 100.0 101.0 100.0 eBook Hint Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period? Print References Complete this question by entering your answers in the tabs below. Change in Net Income Net Income Did the net income increase, decrease, or remain unchanged in this three-year period? Did the net income increase, decrease, or remain unchanged in this three-year period? < Change in Net Income Net Income > Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period? Complete this question by entering your answers in the tabs below. Change in Net Income Net Income Determine the net income for the following years. Assuming sales were $100,000 2 yrs ago, what is net income in each year? Note: Enter all amounts as positive values. Sales Cost of Goods Sold Operating Expenses Net Income Current Year 1 Year Ago 2 Years Ago $ 100,000 56,200 14,100 $ 29,700 ! Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 35,825 102,803 131,840 11,765 318,952 $ 601,185 $ 41,461 74,734 93,002 10,775 298,291 $ 518,263 $ 88,462 121,584 163,500 144,717 $ 44,938 59,918 61,954 4,896 268,994 $ 440,700 $ 59,336 98,369 162,500 120,495 $ 151,192 Long-term notes payable Common stock, $10 par value Retained earnings 111,893 163,500 174,600 Total liabilities and equity $ 601,185 $ 518,263 $ 440,700 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share (1-a) Compute days' sales uncollected. Current Year 1 Year Ago $ 781,541 $ 616,733 $ 476,740 $ 400,876 242,278 156,033 14,185 9,251 742,464 580,345 $ 36,388 13,286 10,160 $ 39,077 $ 2.40 (1-b) Determine if days' sales uncollected improved or worsened in the current year. (2-a) Compute accounts receivable turnover. $ 2.24 (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. (3-a) Compute inventory turnover. (3-b) Determine if inventory turnover ratio improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales uncollected. Current Year: 1 Year Ago: Days' Sales Uncollected Numerator: Denominator: x Days Days' Sales Uncollected x < Required 1A Required 1B > = Days' sales uncollected days days Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Determine if days' sales uncollected improved or worsened in the current year. Days' sales uncollected < Required 1A Required 2A > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute accounts receivable turnover. Note: Round your answers to the nearest whole number. Accounts Receivable Turnover Current Year: 1 Year Ago: Numerator: 1 Denominator: Accounts Receivable Turnover = = Accounts receivable turnover times < Required 1B Required 2B > times Required information Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Determine if accounts receivable turnover ratio improved or worsened in the current year. Accounts receivable turnover < Required 2A Required 3A > Required information Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute inventory turnover. Note: Round your answers to the nearest whole number. Current Year: 1 Year Ago: Inventory Turnover Numerator: Denominator: Inventory Turnover = Inventory turnover = times times < Required 2B Required 3B > For each ratio, select the building block of financial statement analysis to which it best relates. 1. Debt ratio 2. Current ratio 3. Return on equity 4. Days' sales in inventory 5. Total asset turnover 6. Accounts receivable turnover 7. Dividend yield 8. Return on total assets 9. Equity ratio Liquidity and efficiency Profitability Profitability Solvency Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. Note: Round your percentage answers to 1 decimal place. GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 745,000 $ 690,000 Cost of goods sold 560,000 293,200 Gross profit 185,000 396,800 Operating expenses 128,000 263,600 Net income $ 57,000 $ 133,200 Income Statement Reason for Decline in Net Income > Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Using the common-size percents, which item is most responsible for the decline in net income? Using the common-size percents, which item is most responsible for the decline in net income? < Income Statement Reason for Decline in Net Income > 3 Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow. Common-Size Percents Trend Percents oints Current Year 2 Years 1 Year Ago Sales 100.0% 100.0% Cost of goods sold 63.4 Operating expenses 14.3 61.2 13.8 Ago 100.0% 56.2 14.1 Current Year 104.4% 117.8 105.9 2 Years 1 Year Ago 103.2% 112.4 Ago 100.0% 100.0 101.0 100.0 eBook Hint Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period? Print References Complete this question by entering your answers in the tabs below. Change in Net Income Net Income Did the net income increase, decrease, or remain unchanged in this three-year period? Did the net income increase, decrease, or remain unchanged in this three-year period? < Change in Net Income Net Income > Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period? Complete this question by entering your answers in the tabs below. Change in Net Income Net Income Determine the net income for the following years. Assuming sales were $100,000 2 yrs ago, what is net income in each year? Note: Enter all amounts as positive values. Sales Cost of Goods Sold Operating Expenses Net Income Current Year 1 Year Ago 2 Years Ago $ 100,000 56,200 14,100 $ 29,700 ! Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 35,825 102,803 131,840 11,765 318,952 $ 601,185 $ 41,461 74,734 93,002 10,775 298,291 $ 518,263 $ 88,462 121,584 163,500 144,717 $ 44,938 59,918 61,954 4,896 268,994 $ 440,700 $ 59,336 98,369 162,500 120,495 $ 151,192 Long-term notes payable Common stock, $10 par value Retained earnings 111,893 163,500 174,600 Total liabilities and equity $ 601,185 $ 518,263 $ 440,700 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share (1-a) Compute days' sales uncollected. Current Year 1 Year Ago $ 781,541 $ 616,733 $ 476,740 $ 400,876 242,278 156,033 14,185 9,251 742,464 580,345 $ 36,388 13,286 10,160 $ 39,077 $ 2.40 (1-b) Determine if days' sales uncollected improved or worsened in the current year. (2-a) Compute accounts receivable turnover. $ 2.24 (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. (3-a) Compute inventory turnover. (3-b) Determine if inventory turnover ratio improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales uncollected. Current Year: 1 Year Ago: Days' Sales Uncollected Numerator: Denominator: x Days Days' Sales Uncollected x < Required 1A Required 1B > = Days' sales uncollected days days Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Determine if days' sales uncollected improved or worsened in the current year. Days' sales uncollected < Required 1A Required 2A > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute accounts receivable turnover. Note: Round your answers to the nearest whole number. Accounts Receivable Turnover Current Year: 1 Year Ago: Numerator: 1 Denominator: Accounts Receivable Turnover = = Accounts receivable turnover times < Required 1B Required 2B > times Required information Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Determine if accounts receivable turnover ratio improved or worsened in the current year. Accounts receivable turnover < Required 2A Required 3A > Required information Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute inventory turnover. Note: Round your answers to the nearest whole number. Current Year: 1 Year Ago: Inventory Turnover Numerator: Denominator: Inventory Turnover = Inventory turnover = times times < Required 2B Required 3B >
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