3 Panther Printing declared and paid a cash dividend of $8,500 in the current year. Its...

Transcribed Image Text:

3 Panther Printing declared and paid a cash dividend of $8,500 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year Income Statement Sales Revenue Cost of Goods Sold $ 205,000 90,000 $ 175,000 86,000 Gross Profit 115,000 89,000 Operating Expenses. 55,000 48,200 Interest Expense 5,900 5,900 Income before Income Tax Expense 54,100 34,900 Income Tax Expense (30%) 16,230 10,470 Net Income $ 37,870 $ 24,430 Balance Sheet Cash Accounts Receivable, Net Inventory $ 94,295 36,000 44,000 114,000 $285,295 $ 19,000 31,000 57,000 124,000 Property and Equipment, Net Total Assets $ 231,000 $ 33,100 $ 61,000 Accounts Payable: Income Tax Payable Notes Payable (long-tere); 1,475 59,000 121,475 101,400 65,420 1,450 59,000 93,550 Total Liabilities Connon Stock (par $10) 101,400 36,050 Retained Earnings $ 288,295 $ 231,000 Total Liabilities and Stockholders' Equity Required: 1. 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? 2. 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? 3. Compute the earnings per share for the current and previous years. Are the current year results better, or worse, than those for the your 3. 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? 4. Stockholders' equity totaled $119,000 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? 5. Net property and equipment totaled $129,000 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? 6. 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? 7. 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? 8. After Panther Printing released its current year's financial statements, the company's stock was trading at $37. After the release of its previous year's financial statements, the company's stock price was $34 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Panther's future success? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? % 1-a Current Year % 1-a Previous Year 1-b Current year gross profit percentage? Complete this question by entering your answers in the tabs below. Required 1. Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 2-a. Current Year % 2-a. Previous Year % 2-b. Current year net profit margin? < Required 1 Required 3 > o less opuiflistic about Panther's future success? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 71 Required 8 4-a. Stockholders' equity totaled $119,000 at the beginning of the previous year. Compute the return on equity (ROE) 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? 4-a. Current Year 4-a. Previous Year % 4-b. Current year return on equity ratio? < Required 3 Required 5 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 51 Required 6 Required 7 Required 8 5-a. Net property and equipment totaled $129,000 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 current-year results better, or worse, than those for the previous year? 5-a. Current Year 5-a. Previous Year 5-b. Current year fixed asset turnover? < Required 4 Required 6 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 6-a Current Year 6-a. Previous Year 6.b. Current year debt-to-assets ratio? < Required 5 Required 7 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 7-a. Current Year 7-a Previous Year 7-b. Current year times interest earned ratio? < Required 6 Required 8 > Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Required 4 Required 5. Required 6 Required 7 Required 8 8-a. After Panther Printing released its current year's financial statements, the company's stock was trading at $37. After the release of its previous year's financial statements, the company's stock price was $34 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 Panther's future success? Show less A 8-a. Current Year 8-a. Previous Year 8-b. Current year P/E ratio? < Required 7 Required 8: 3 Panther Printing declared and paid a cash dividend of $8,500 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year Income Statement Sales Revenue Cost of Goods Sold $ 205,000 90,000 $ 175,000 86,000 Gross Profit 115,000 89,000 Operating Expenses. 55,000 48,200 Interest Expense 5,900 5,900 Income before Income Tax Expense 54,100 34,900 Income Tax Expense (30%) 16,230 10,470 Net Income $ 37,870 $ 24,430 Balance Sheet Cash Accounts Receivable, Net Inventory $ 94,295 36,000 44,000 114,000 $285,295 $ 19,000 31,000 57,000 124,000 Property and Equipment, Net Total Assets $ 231,000 $ 33,100 $ 61,000 Accounts Payable: Income Tax Payable Notes Payable (long-tere); 1,475 59,000 121,475 101,400 65,420 1,450 59,000 93,550 Total Liabilities Connon Stock (par $10) 101,400 36,050 Retained Earnings $ 288,295 $ 231,000 Total Liabilities and Stockholders' Equity Required: 1. 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? 2. 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? 3. Compute the earnings per share for the current and previous years. Are the current year results better, or worse, than those for the your 3. 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? 4. Stockholders' equity totaled $119,000 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? 5. Net property and equipment totaled $129,000 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? 6. 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? 7. 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? 8. After Panther Printing released its current year's financial statements, the company's stock was trading at $37. After the release of its previous year's financial statements, the company's stock price was $34 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Panther's future success? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? % 1-a Current Year % 1-a Previous Year 1-b Current year gross profit percentage? Complete this question by entering your answers in the tabs below. Required 1. Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 2-a. Current Year % 2-a. Previous Year % 2-b. Current year net profit margin? < Required 1 Required 3 > o less opuiflistic about Panther's future success? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 71 Required 8 4-a. Stockholders' equity totaled $119,000 at the beginning of the previous year. Compute the return on equity (ROE) 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? 4-a. Current Year 4-a. Previous Year % 4-b. Current year return on equity ratio? < Required 3 Required 5 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 51 Required 6 Required 7 Required 8 5-a. Net property and equipment totaled $129,000 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 current-year results better, or worse, than those for the previous year? 5-a. Current Year 5-a. Previous Year 5-b. Current year fixed asset turnover? < Required 4 Required 6 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 6-a Current Year 6-a. Previous Year 6.b. Current year debt-to-assets ratio? < Required 5 Required 7 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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? 7-a. Current Year 7-a Previous Year 7-b. Current year times interest earned ratio? < Required 6 Required 8 > Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Required 4 Required 5. Required 6 Required 7 Required 8 8-a. After Panther Printing released its current year's financial statements, the company's stock was trading at $37. After the release of its previous year's financial statements, the company's stock price was $34 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 Panther's future success? Show less A 8-a. Current Year 8-a. Previous Year 8-b. Current year P/E ratio? < Required 7 Required 8:

Answer rating: 100% (QA)

Explanat... View the full answer