The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year...
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The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Net sales Cost of goods sold: Inventory, Dec. 31, 2022 Purchases Goods available for sale Inventory, Dec. 31, 2023 Cost of goods sold. Gross profit from sales Operating expenses Operating profit Interest expense Prof Income taxes Profit Assets Cash before taxes Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable $1,106,000 Outdoor Waterworks Inc. Balance Sheet December 31, 2023 $ $ Common shares, 160,000 shares Retained earnings Total liabilities and equity $ $ $ 82,360 614,840 697,200 61,140 636,060 469,940 287,360 182,580 12,800 169 19,564 $ 150,216 Long-term note payable, secured by mortgage on plant $ 23,600 26,160 53,480 11,960 61,140 6,040 333,520 $515,900 $ 49,400 6,520 7,380 118,200 199,000 135,400 $515,900 Assume all sales were on credit. Also assume the long-term note payable is due in 2026, with no current portion. On the December 31, 2022, balance sheet, the assets totalled $439,720, common shares were $199,000, and retained earnings were $111.840. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) a. Current ratio b. Quick ratio c. Days' sales uncollected d. Inventory turnover Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities g.Times interest earned h. Profit margin i. Total asset turnover j. Return on total assets k. Return on common shareholders' equity Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a. Current ratio Quick ratio c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities g. Times interest earned h. Profit margin i. Total asset turnover j. Return on total assets k. Return on common shareholders' equity Industry Average 1.6:1 1.1:1 21 days 5 times 70 days 1.4:1 to 1 to 1 days times days to 1 times % times % % 50 times 14 % 2.3 times 20 % 32.7% The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Net sales Cost of goods sold: Inventory, Dec. 31, 2022 Purchases Goods available for sale Inventory, Dec. 31, 2023 Cost of goods sold. Gross profit from sales Operating expenses Operating profit Interest expense Prof Income taxes Profit Assets Cash before taxes Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable $1,106,000 Outdoor Waterworks Inc. Balance Sheet December 31, 2023 $ $ Common shares, 160,000 shares Retained earnings Total liabilities and equity $ $ $ 82,360 614,840 697,200 61,140 636,060 469,940 287,360 182,580 12,800 169 19,564 $ 150,216 Long-term note payable, secured by mortgage on plant $ 23,600 26,160 53,480 11,960 61,140 6,040 333,520 $515,900 $ 49,400 6,520 7,380 118,200 199,000 135,400 $515,900 Assume all sales were on credit. Also assume the long-term note payable is due in 2026, with no current portion. On the December 31, 2022, balance sheet, the assets totalled $439,720, common shares were $199,000, and retained earnings were $111.840. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) a. Current ratio b. Quick ratio c. Days' sales uncollected d. Inventory turnover Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities g.Times interest earned h. Profit margin i. Total asset turnover j. Return on total assets k. Return on common shareholders' equity Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a. Current ratio Quick ratio c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities g. Times interest earned h. Profit margin i. Total asset turnover j. Return on total assets k. Return on common shareholders' equity Industry Average 1.6:1 1.1:1 21 days 5 times 70 days 1.4:1 to 1 to 1 days times days to 1 times % times % % 50 times 14 % 2.3 times 20 % 32.7%
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a Current Assets Cash Accounts Receivable Notes Receivable Inventory Prepaid Expenses 23600 26160 53480 11960 61140 176340 Current Liabilities Accounts Payable Accrued Wages Payable Income Taxes Payab... View the full answer
Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
Posted Date:
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