VIDEO SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable...

 

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VIDEO SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2024 2023 $217,600 58,000 $110,000 82,000 85,000 70,000 3,000 1,000. 380,000 380,000 690,000 570,000 (328,000) (168,000) $1,105,600 $1,045,000 Interest payable Incone tax payable Long-term liabilities: Notes payable Stockholders' equity: Connon stock Retained earnings Total liabilities and stockholders' equity Additional information for 2024 1. Net income is $169,600 2. Sales on account are $1,183,000. (All sales are credit sales.) 3. Cost of goods sold is $953,250. Required: 1. Calculate the following profitability ratios for 2024: $89,000 $75,000 5,000 11,000 7,000 4,000 120,000 240,000 600,000 600,000 284,600 115,000 $1,105,600 $1,045,000 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $1,105,600 $1,045,000 $89,000 5,000 $75,000 11,000 7,000 4,000 120,000 240,000 600,000 600,000 Retained earnings 284,600 115,000 Total liabilities and stockholders' equity $1,105,600 $1,045,000 Stockholders' equity: Common stock Additional information for 2024: 1. Net income is $169,600. 2. Sales on account are $1,183,000. (All sales are credit sales.) 3. Cost of goods sold is $953,250. Required: 1. Calculate the following profitability ratios for 2024: 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 21 Calculate the following profitability ratios for 2024: (Round your answers to 1 decimal place.) Profitability Ratios a. Gross profit ratio b. Return on assets % % c. Profit margin % d. Asset turnover times e. Return on equity % VIDEO SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2024 2023 $217,600 58,000 $110,000 82,000 85,000 70,000 3,000 1,000. 380,000 380,000 690,000 570,000 (328,000) (168,000) $1,105,600 $1,045,000 Interest payable Incone tax payable Long-term liabilities: Notes payable Stockholders' equity: Connon stock Retained earnings Total liabilities and stockholders' equity Additional information for 2024 1. Net income is $169,600 2. Sales on account are $1,183,000. (All sales are credit sales.) 3. Cost of goods sold is $953,250. Required: 1. Calculate the following profitability ratios for 2024: $89,000 $75,000 5,000 11,000 7,000 4,000 120,000 240,000 600,000 600,000 284,600 115,000 $1,105,600 $1,045,000 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $1,105,600 $1,045,000 $89,000 5,000 $75,000 11,000 7,000 4,000 120,000 240,000 600,000 600,000 Retained earnings 284,600 115,000 Total liabilities and stockholders' equity $1,105,600 $1,045,000 Stockholders' equity: Common stock Additional information for 2024: 1. Net income is $169,600. 2. Sales on account are $1,183,000. (All sales are credit sales.) 3. Cost of goods sold is $953,250. Required: 1. Calculate the following profitability ratios for 2024: 2. When we compare two companies, can one have a higher return on assets while the other has a higher return on equity? Complete this question by entering your answers in the tabs below. Required 1 Required 21 Calculate the following profitability ratios for 2024: (Round your answers to 1 decimal place.) Profitability Ratios a. Gross profit ratio b. Return on assets % % c. Profit margin % d. Asset turnover times e. Return on equity %

Answer rating: 100% (QA)

To calculate the profitability ratios for 2024 we will use the following formulas a Gross Profit Margin Sales Cost of Goods Sold Sales b Net Profit Ma... View the full answer