3. The Financial Statements of Pip's Puppy Company are presented below. Pip's Puppy COMPANY Income Statement...
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3. The Financial Statements of Pip's Puppy Company are presented below. Pip's Puppy COMPANY Income Statement For the Year Ended December 31 Net sales Cost of goods sold Gross profit Selling and administrative expense Income from operations Other expenses and losses Interest expense Income before income taxes 285,000 Income tax expense Net income Pip's Puppy Company Balance Sheets December 31 ASSETS: Current assets Cash Short-term investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets 2021 $1,828,500 1,010,500 818,000 516,000 302,000 17,000 75.000 $210,000 2021 $60,100 64,000 122,800 118,000 364,900 2020 261,500 $1,750,500 996,000 754,500 479,000 275,500 14,000 77,000 $184,500 2020 $64,200 50,000 102,800 115,500 332,500 605,300 520,300 $970,200 $852,800 Liabilities and Stockholders' Equity: LIABILITIES: Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities 43.500 $160,000 $145,400 203,500 187,400 210,000 413,500 (g) Debt to assets. h) Gross Profit Margin 42,000 Stockholders' equity 280,000 300,000 Common stock ($5 par) Retained earnings 276,700 165.400 Total stockholders' equity 556,700 465,400 Total liabilities and stockholders' equity $970,200 $852,800 All sales were on account receivable or they were CREDIT Sales. Instructions: Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) (a) Earnings per share. (b) Accounts receivable turnover. (c) Return on common stockholders' equity. (d) Inventory turnover. (e) Return on assets. (f) Current Ratio 200,000 387,400 3. The Financial Statements of Pip's Puppy Company are presented below. Pip's Puppy COMPANY Income Statement For the Year Ended December 31 Net sales Cost of goods sold Gross profit Selling and administrative expense Income from operations Other expenses and losses Interest expense Income before income taxes 285,000 Income tax expense Net income Pip's Puppy Company Balance Sheets December 31 ASSETS: Current assets Cash Short-term investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets 2021 $1,828,500 1,010,500 818,000 516,000 302,000 17,000 75.000 $210,000 2021 $60,100 64,000 122,800 118,000 364,900 2020 261,500 $1,750,500 996,000 754,500 479,000 275,500 14,000 77,000 $184,500 2020 $64,200 50,000 102,800 115,500 332,500 605,300 520,300 $970,200 $852,800 Liabilities and Stockholders' Equity: LIABILITIES: Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities 43.500 $160,000 $145,400 203,500 187,400 210,000 413,500 (g) Debt to assets. h) Gross Profit Margin 42,000 Stockholders' equity 280,000 300,000 Common stock ($5 par) Retained earnings 276,700 165.400 Total stockholders' equity 556,700 465,400 Total liabilities and stockholders' equity $970,200 $852,800 All sales were on account receivable or they were CREDIT Sales. Instructions: Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) (a) Earnings per share. (b) Accounts receivable turnover. (c) Return on common stockholders' equity. (d) Inventory turnover. (e) Return on assets. (f) Current Ratio 200,000 387,400
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Pips Puppy Company Compute the following ratio a Earning Per Share is a financial ratio It is calculated as Net Income available to common shareholder... View the full answer
Related Book For
Financial Accounting IFRS
ISBN: 978-1118285909
2nd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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