Required:

Compute the gross profit percentage in the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Compute the net profit margin for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Compute the earnings per share for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Stockholders$?$ ?equity totaled $$117,000$ ?at the beginning of the previous year. Compute the return on equity $($ROE$)$ ?ratios for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Net property and equipment totaled $$127,000$ ?at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

Compute the debt$-$to$-$assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the company$?$s asset growth?

Compute the times interest earned ratios for the current and previous years. Are the current$-$year results better, or worse, than those for the previous year?

After Columbia Associates released its current year$?$s financial statements, the company$?$s stock was trading at $$35.$ ?After the release of its previous year$?$s financial statements, the company$?$s stock price was $$32$ ?per share. Compute the P$/$E ratios for both years. Does it appear that investors have become more $($or less$)$ ?optimistic about Columbia$?$s future success? $1-$a$.$ ?Compute the gross profit percentage in the current and previous years. $($Round percentage values to $1$ ?decimal place.$)$

$1-$b$.$ ?Are the current$-$year results better, or worse, than those for the previous year?

$2-$a$.$ ?Compute the net profit margin for the current and previous years. $($Round percentage values to $1$ ?decimal place.$)$

$2-$b$.$ ?Are the current$-$year results better, or worse, than those for the previous year?

$3-$a$.$ ?Compute the earnings per share for the current and previous years. $($Round your answers to $2$ ?decimal places.$)$

$3-$b$.$ ?Are the current$-$year results better, or worse, than those for the previous year?

$4-$a$.$ ?Stockholders$?$ ?equity totaled $$117,000$ ?at the beginning of the previous year. Compute the return on equity $($ROE$)$ ?ratios for the current and previous years. $($Round percentage values to $1$ ?decimal place.$)$

$4-$b$.$ ?Are the current$-$year results better, or worse, than those for the previous year?

$5-$a$.$ ?Net property and equipment totaled $$127,000$ ?at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. $($Round your answers to $2$ ?decimal places.$)$

$5-$b$.$ ?Are the c

urrent$-$year results better, or worse, than those for the previous year?

$6-$a$.$ ?Compute the debt$-$to$-$assets ratios for the current and previous years. $($Round your answers to $2$ ?decimal places.$)$

$6-$b$.$ ?Is debt providing financing for a larger or smaller proportion of the company$?$s asset growth?

?$7-$a$.$ ?Compute the times interest earned ratios for the current and previous years. $($Round your answers to $1$ ?decimal place.$)$

$7-$b$.$ ?Are the current$-$year results better, or worse, than those for the previous year?

$8-$a$.$ ?After Columbia Associates released its current year$?$s financial statements, the company$?$s stock was trading at $$35.$ ?After the release of its previous year$?$s financial statements, the company$?$s stock price was $$32$ ?per share. Compute the P$/$E ratios for both years. $($Round your intermediate calculations to $2$ ?decimal places and final answers to $1$ ?decimal place.$)$

$8-$b$.$ ?Does it appear that investors have become more $($or less$)$ ?optimistic about Columbia$?$s future success?

Transcribed Image Text:

Columbia Associates declared and paid a cash dividend of $8,300 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Current Year Previous Year $ 195,000 $ 167,000 86,000 82,000 109,000 85,000 53,000 46,600 5,700 5,700 50,300 15,090 $ 35,210 $ 91,685 34,000 42,000 112,000 $ 279,685 $ 59,000 1,425 57,000 117,425 100,200 62,060 Total Liabilities and Stockholders' Equity $ 279,685 Retained Earnings 32,700 9,810 $ 22,890 $ 21,000 29,000 55,000 122,000 $ 227,000 $ 33,300 1,350 57,000 91,650 100,200 35,150 $ 227,000 Columbia Associates declared and paid a cash dividend of $8,300 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Current Year Previous Year $ 195,000 $ 167,000 86,000 82,000 109,000 85,000 53,000 46,600 5,700 5,700 50,300 15,090 $ 35,210 $ 91,685 34,000 42,000 112,000 $ 279,685 $ 59,000 1,425 57,000 117,425 100,200 62,060 Total Liabilities and Stockholders' Equity $ 279,685 Retained Earnings 32,700 9,810 $ 22,890 $ 21,000 29,000 55,000 122,000 $ 227,000 $ 33,300 1,350 57,000 91,650 100,200 35,150 $ 227,000

Answer rating: 100% (QA)

1a Gross profit percentage in current year 560 Gross profit percentage in previous year 510 1b The c... View the full answer