The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following...
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The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net). Inventory. Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earnings Year 2 $277,140 220,730 56,410 41,320 15,090 12,100 3,990 3,000 $ 11,100 $ 9,100 $ 4,880 18,700 47,910 43,730 $115,220 $ 15,130 42,590 Year 1 $235,000 186,000 49,000 36,900 30,000 27,500 $115,220 S 9,800 22,500 42,000 37,000 $111,300 $18,300 39,400 30,000 23,600 $111,300 "One-third was credit sales. During Year 2, cash dividends amounting to $7.200 were declared and paid. Required: 1. Complete the following columns for each item in the preceding comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places (i... 0.1243 should be entered as 12.43).) Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities Long-term debt Common shares Retained earnings 2-a. By what amount did working capital change? Change in working capital $ $ S $ Increase (Decrease) Year 2 over Year 1 Amount 42,140 34,730 7,410 4,420 2,990 2,990 (4.920) (3,800) 5,910 6,730 3,920 (3,170) 3,190 0 3,900 3,920 Percentage 17.93 18.67 15.12 24.71 (50.20) 14.07 (17.32) 8.10 0.00 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Percentage change 2-c. What was the amount of cash collections from customers in year 2? Amount of cash inflow % 2-d. What was the percentage change for the markup realized on sales? (Round intermediate calculations and final answer to 1 decimal place.) Percentage change The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net). Inventory. Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earnings Year 2 $277,140 220,730 56,410 41,320 15,090 12,100 3,990 3,000 $ 11,100 $ 9,100 $ 4,880 18,700 47,910 43,730 $115,220 $ 15,130 42,590 Year 1 $235,000 186,000 49,000 36,900 30,000 27,500 $115,220 S 9,800 22,500 42,000 37,000 $111,300 $18,300 39,400 30,000 23,600 $111,300 "One-third was credit sales. During Year 2, cash dividends amounting to $7.200 were declared and paid. Required: 1. Complete the following columns for each item in the preceding comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places (i... 0.1243 should be entered as 12.43).) Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities Long-term debt Common shares Retained earnings 2-a. By what amount did working capital change? Change in working capital $ $ S $ Increase (Decrease) Year 2 over Year 1 Amount 42,140 34,730 7,410 4,420 2,990 2,990 (4.920) (3,800) 5,910 6,730 3,920 (3,170) 3,190 0 3,900 3,920 Percentage 17.93 18.67 15.12 24.71 (50.20) 14.07 (17.32) 8.10 0.00 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Percentage change 2-c. What was the amount of cash collections from customers in year 2? Amount of cash inflow % 2-d. What was the percentage change for the markup realized on sales? (Round intermediate calculations and final answer to 1 decimal place.) Percentage change
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Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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