Statements of Financial Position and Income Statement of Sonata Company are shown below: Sonata Company Income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Statements of Financial Position and Income Statement of Sonata Company are shown below: Sonata Company Income Statement Sonata Company Statements of Financial Position 30 June ($ in million) Cash Short-term investments Prepaid expenses Accounts receivable Inventory Machinery (net) Accounts payable Income tax payable Notes payable (due in 9 months) Long-term liabilities Ordinary shares, $2 par Retained earnings Additional information: 2019 200 300 160 760 688 952 3,060 360 87 124 686 600 1,203 3,060 2018 150 250 168 560 592 1,048 2,768 340 60 100 568 600 1,100 2,768 For the year ended 30 June 2019 (S in million) Net sales Cost of goods sold Gross profit Operating expenses Operating profit Interest expense Profit before taxes Income taxes (15%) Net profit 2,240 (896) 1,344 (744) 600 (20) 580 (87) 493 (1) The market price of the ordinary shares as at 30 June 2019 is $30 per share. (2) The Company declared and paid total cash dividend of $390 million during the year ended 30 June 2019. (3) Credit sales totalled 72% of net sales. (a) Calculate the following ratios of the company for the year ended 30 June 2019. Show your workings. (Round ALL answers to 2 decimal places.) (i) Debt ratio (in %) (ii) Times interest earned (in times) (iii) Quick ratio (iv) Earnings per share (in $) Question C4 (continued) (v) Price earnings ratio (vi) Dividend yield (in %) (vii) Inventory turnover (1.5 marks) (1.5 marks) (1.5 marks) (1.5 marks) Page 14 of 15 (1.5 marks) (1.5 marks) (1.5 marks) Question C4 (continued) (b) (v) Price earnings ratio (1.5 marks (vi) Dividend yield (in %) (1.5 marks (vii) Inventory turnover (1.5 marks) (viii) Accounts receivable turnover (1.5 marks) Financial statements may be presented in various formats to facilitate analysis. State AND briefly explain the THREE types of Financial Statements that are designed for analysis. (3 marks) Statements of Financial Position and Income Statement of Sonata Company are shown below: Sonata Company Income Statement Sonata Company Statements of Financial Position 30 June ($ in million) Cash Short-term investments Prepaid expenses Accounts receivable Inventory Machinery (net) Accounts payable Income tax payable Notes payable (due in 9 months) Long-term liabilities Ordinary shares, $2 par Retained earnings Additional information: 2019 200 300 160 760 688 952 3,060 360 87 124 686 600 1,203 3,060 2018 150 250 168 560 592 1,048 2,768 340 60 100 568 600 1,100 2,768 For the year ended 30 June 2019 (S in million) Net sales Cost of goods sold Gross profit Operating expenses Operating profit Interest expense Profit before taxes Income taxes (15%) Net profit 2,240 (896) 1,344 (744) 600 (20) 580 (87) 493 (1) The market price of the ordinary shares as at 30 June 2019 is $30 per share. (2) The Company declared and paid total cash dividend of $390 million during the year ended 30 June 2019. (3) Credit sales totalled 72% of net sales. (a) Calculate the following ratios of the company for the year ended 30 June 2019. Show your workings. (Round ALL answers to 2 decimal places.) (i) Debt ratio (in %) (ii) Times interest earned (in times) (iii) Quick ratio (iv) Earnings per share (in $) Question C4 (continued) (v) Price earnings ratio (vi) Dividend yield (in %) (vii) Inventory turnover (1.5 marks) (1.5 marks) (1.5 marks) (1.5 marks) Page 14 of 15 (1.5 marks) (1.5 marks) (1.5 marks) Question C4 (continued) (b) (v) Price earnings ratio (1.5 marks (vi) Dividend yield (in %) (1.5 marks (vii) Inventory turnover (1.5 marks) (viii) Accounts receivable turnover (1.5 marks) Financial statements may be presented in various formats to facilitate analysis. State AND briefly explain the THREE types of Financial Statements that are designed for analysis. (3 marks)
Expert Answer:
Answer rating: 100% (QA)
Part A i Debt ratio total liabilities total assets Total liabilities accounts payable income tax payable notes payable longterm liabilities 3608712468... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
Students also viewed these accounting questions
-
The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd: Bargains galore PTY LTD Comparative Statements of Financial Position...
-
The following is the statement of financial position and income statement of PT WESTIN as of December 31, 2018: PT WESTIN Financial Position Report as of December 31, 2018Current...
-
The 2015 comparative statement of financial position and income statement of A. Karev Medical Supplies follow: A. Karev Medical Supplies had no noncash investing and financing transactions during...
-
How do you ensure data quality?
-
Distinguish between knowledge and data.
-
In the proof of Theorem 14.2 we assume that \(\left(B_{t}ight)_{t \geqslant 0}\) and \((U, W)\) are independent. Show that \(\mathscr{F}_{t}:=\sigma\left(B_{s}, s \leqslant t ; U, Wight)\) is an...
-
CGI Federal, Inc., is a corporation that provides a number of services to the United States Passport Agency, included the processing of passport application. Passport applicants must submit sensitive...
-
Bonds 1. Municipal Bonds - Municipal bonds are haircut per Exhibit 1 based on both their time to maturity and scheduled maturity at date of issue. 2. Corporate Bonds - Corporate bonds are haircut...
-
Need help with this relational model, please. I am having trouble understanding how to create the relational model.
-
Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office...
-
age Exercise 1: We consider a simple polygon P, which is defined by an ordered list of points. As an example one could consider the following list of points ((0,0), (1,0), (1, 1), (0, 1)), which...
-
Consider a 6% T-note with 1.5 years to maturity. Spot rates (expressed as semiannual yields to maturity) are: 6 months = 5%, 1 year = 6% and 1.5 years = 7%. If the note is selling for $992, compute...
-
Non-event risks Question 12 options: Have minimal impact Have two main types: variability risk and ambiguity risk Are typically risks that do not trigger events that may in turn cause future risks...
-
If the Fed decreases interest rates, this should cause a capital outflow and the value of the USD to Group of answer choices appreciate depreciate remain unchanged none of the above
-
Compute the distance between the points. (-10, -22) and (-18,-28) The distance between the given points is (Type an exact answer, using radicals as needed.)
-
An investor has a position of $1,000,000 in shares of an investment bank called Black Plainly (BP). BP's yearly volatility is 20% and yearly expected returns is 10%. What is our investor's Value at...
-
Skim the paper "Public Pension Promises: How Big Are They And What Are They Worth?" by Robert Novy-Marx and Josh Rauh (Journal of Finance, 2011). Here is the link:...
-
Consider a closed, rigid tank with a volume of 0.8L, filled with cold water initially at 27C. The tank is filled such that there are no voids (air pockets) within. The initial pressure within the...
-
Martindale Ltd uses the historical cost system. While reviewing the business activities of the company, you discover that the following transactions and events were recorded. Ignore GST. 1. Ending...
-
Simone Taylor is involved in helping to make many different types of decisions as part of her employment. List examples of the types of consumption, investment and financing decisions that she would...
-
Aid and development organisations, such as World Vision, have many different programs and campaigns to raise money for the purpose of emergency relief work in specific countries, and for large...
-
Fill in the blanks to make the following statements correct. a. Economists have designed____________ to better explain and predict the behaviour we observe in the world around us. b. A variable, such...
-
The following supply and demand schedules describe a hypothetical Canadian market for potash. a. What is the equilibrium price of potash? b. How much potash would actually be purchased if the price...
-
According to Statistics Canada, Canada's exports and imports of energy (combined totals of fossil fuels, hydro, and nuclear, all measured in petajoules) over a five-year period were as follows: a....
Study smarter with the SolutionInn App