Question: i need help with these two problems (2) Provide a description of what the metric is designed to tell us. What, if anything, does this

i need help with these two problems  i need help with these two problems (2) Provide a description
of what the metric is designed to tell us. What, if anything,

(2) Provide a description of what the metric is designed to tell us. What, if anything, does this year's value tell us about Pacioli? (3) Given our understanding of businesses, why is this information important? How does it fit into the overall puzzle? Metric 1:% change in Revenue Metric 4: Free cash flow Metric 2: Gross profit margin Metric 5: Inventory turnover Metric 3: ROE Metric 6: A/R turnover ASSETS Current Assets Cash Marketable Securities Accounts Receivable, Net of Uncollectible Accounts Inventory Prepaid Expenses Total Current Assets Fixed Assets Buildings and Equipment Less Accumulated Depreciation Net Buildings and Equipment Land Total Fixed Assets Goodwill EXHIBIT 22:1 Pacioli Wholesale Corporation Statement of Financial Position As of June 30 2018 and June 30, 2017 2018 2017 2018 2017 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities $ 8.000 $ 7.000 Wages Payable $ 3.000 $ 2.000 12.000 9.000 Accounts Payable 29.000 25,000 Taxes Payable 15.000 12.000 22.000 30,000 Total Current Liabilities $ 47.000 39.000 49,000 40.000 Long Term Liabilities 3.000 2.000 Mortgage Payable $ 45,000 $50.000 $94.000 $88.000 Bond Payable 100,000 100,000 Deferred Taxes 39.000 35.000 $150,000 $120,000 Total Long-Term Liabilities $184.000 $185.000 Stockholders' Equity 40.000 30.000 Common Stock $1 Par. 1000 Shares $1,000 $1,000 Common Stock-Excess over Par 24.000 24,000 $110,000 $ 90,000 Preferred Stock, 10%, 5100 PM 50.000 50.000 100 Shares 10,000 10.000 $160,000 $140.000 Retained Earnings 33.000 19.000 $45.000 $_50.000 Total Stockholders' Equity 568.000 $ 54,000 TOTAL LIABILITIES & $299,000 $278,000 STOCKHOLDERS' EQUITY $299,000 $278,000 The accompanying notes are an integral part of these statements. TOTAL ASSETS EXHIBIT 222 Pacioli Wholesale Corporation Income Statement and Analysis of Retained Earnings For the Years Ending June 30, 2015 and June 30, 2017 2018 2017 Sales 5297,000 $246,000 Loss Cost of Goods Sold 162.000 143.000 Gross Profit $135.000 $100,000 Operating Expenses Selling Expenses $30,000 $25,000 General Expenses 12.000 10.000 Administrative Expenses 29.000 40,000 Total Operating Expenses 91.000 75.000 Operating income $ 44,000 $ 28,000 Interest Expense 12.000 10.000 Income Before Taxes $ 22.000 $ 18,000 Income Taxes 13.000 7.000 Net Income $10.000 $ 11,000 Esmings Per Share Common $ 18.00 $10.00 Loss Dividends 2018 and 2017 5.000 3.000 Addition to retained Earnings $14,000 $ 8,000 Retained Eamings July 1, 2017 and 2016 19.000 11 000 Retained Earnings June 30, 2018 and 2017 $ 33.000 $ 19.000 The accompanying notes are an integral part of these statements. 2018 EXHIBIT 22-3 Pacioli Wholesale Corporation Statement of Cash Flows For the Years Ending June 30, 2018 and June 30, 2017 2017 Cash Flows from Operating Activities Net Income $ 19,000 $11,000 Add Expenses Not Requiring Cast: Depreciation 10,000 8,000 Impairment of Goodwill 5,000 0 Increase in Taxes Payable and Deferred Taxes 7.000 8,000 Other Adjustments: Add Reduction in Accounts Receivable 8.000 1,000 Add increase in Wages Payable 1.000 0 Add Increase in Accounts Payable 4.000 0 Subtract Decrease in Accounts Payable 0 (3.000) Subtract increase in inventory (0.000) 2.000) Subtract Increase in Prepaid Expenses (1.000) Net Cash from Operating Activities $ 44,000 $23,000 Cash Flows from Investing Activities Increase in Marketable Securities $ (3,000) Sale of Fixed Assets 0 $ 2.000 Purchase of New Equipment (30,000) (20,000) Net Cash Used for investing Activities $(33.000) S(18,000)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!