The financial statements of Carla Vista Inc. are presented here: CARLA VISTA INC. Income Statement Year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The financial statements of Carla Vista Inc. are presented here: CARLA VISTA INC. Income Statement Year Ended December 31, 2021 Service revenue $2,185,500 Expenses Operating expenses $1,887,500 Interest expense 103,000 1,990,500 Income before income tax 195,000 Income tax expense 46,000 Net income $149,000 Current assets Cash Trading investments Accounts receivable Supplies December 31, 2021 Property, plant, and equipment Total assets Assets $57,100 49,000 275,800 24,000 $405,900 592,300 $998,200 Liabilities and Shareholders' Equity Current liabilities Accounts payable $83,000 Income tax payable 22,000 Current portion of mortgage payable 26,500 $131,500 Mortgage payable 262,000 Total liabilities 393,500 Shareholders' equity Common shares 277,630 Retained earnings 327,070 604,700 Total liabilities and shareholders' equity $998,200 Additional information: 1. Income available to common shareholders was $149,000. 2. The weighted average number of common shares was 40,000. 3. The share price at December 31 was $35.00. Calculate the following values and ratios for 2021. We provide the results for 2020 for comparative purposes. (Round current ratio, debt to total assets, and price-earnings ratio to 1 decimal place, e.g., 5.2, 5.2%. Round basic earnings per share to 2 decimal places, e.g. 5.20.) 1. Working capital (2020: $260,500) 2. Current ratio (2020: 1.6:1.0) 3. Debt to total assets (2020: 31.5%) 4. Basic earnings per share (2020: $3.15) 5. Price-earnings ratio (2020: 7.5 times) 1. Working capital 2. Current ratio 3. Debt to total assets 4. Basic earnings per share 5. Price-earnings ratio LA $ $ :1 % do times The financial statements of Carla Vista Inc. are presented here: CARLA VISTA INC. Income Statement Year Ended December 31, 2021 Service revenue $2,185,500 Expenses Operating expenses $1,887,500 Interest expense 103,000 1,990,500 Income before income tax 195,000 Income tax expense 46,000 Net income $149,000 Current assets Cash Trading investments Accounts receivable Supplies December 31, 2021 Property, plant, and equipment Total assets Assets $57,100 49,000 275,800 24,000 $405,900 592,300 $998,200 Liabilities and Shareholders' Equity Current liabilities Accounts payable $83,000 Income tax payable 22,000 Current portion of mortgage payable 26,500 $131,500 Mortgage payable 262,000 Total liabilities 393,500 Shareholders' equity Common shares 277,630 Retained earnings 327,070 604,700 Total liabilities and shareholders' equity $998,200 Additional information: 1. Income available to common shareholders was $149,000. 2. The weighted average number of common shares was 40,000. 3. The share price at December 31 was $35.00. Calculate the following values and ratios for 2021. We provide the results for 2020 for comparative purposes. (Round current ratio, debt to total assets, and price-earnings ratio to 1 decimal place, e.g., 5.2, 5.2%. Round basic earnings per share to 2 decimal places, e.g. 5.20.) 1. Working capital (2020: $260,500) 2. Current ratio (2020: 1.6:1.0) 3. Debt to total assets (2020: 31.5%) 4. Basic earnings per share (2020: $3.15) 5. Price-earnings ratio (2020: 7.5 times) 1. Working capital 2. Current ratio 3. Debt to total assets 4. Basic earnings per share 5. Price-earnings ratio LA $ $ :1 % do times
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
I need help on this read from bottom to top. Image transcription text 7"} The second ?nancial statement to prepare is the statement of retained earnings. To determine the ending balance of...
-
The founder, president, and major shareholder of Hawthorne Corp. recently sold his controlling interest in the company to a national distributor in the same line of business. The change in ownership...
-
To anticipate subsequent chapters where more complicated renewable resource models are introduced, consider a slight modification of the two-period depletable resource model. Suppose a biological...
-
Refer to Exercise 3-38B. Requirements 1. Use the data in the partial worksheet to prepare Emerson Production Company's classified balance sheet at December 31 of the current year. Use the report...
-
A red blood cell is a 7.0mdiameter, 2.0mthick disk with a density of 1100 kg/m 3 . What is the de Broglie wavelength of a red blood cell moving through a capillary at 4.0 mm/s? Do we need to be...
-
Your instructor will divide your class randomly into groups of four to six people. Acting as a team, with everyone offering ideas and one person serving as official recorder, each group will be...
-
Assume the facts in E13-5 except that Matt Broderick Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without...
-
A jewelry shop specializes in creating gold and silver charms. The shop has five metalsmiths who work on the charms. One week, the shop's production possibilities curve shifts inward. What could...
-
The circular arc shown below carries a charge per unit length = cos(6), where 0 is measured from the x-axis. What is the electric field at the origin? (Use the following as necessary: 10, 0, 0, r.) ...
-
Pam recently married Henry. When she was single she used a calendar tax year. For a variety of reasons she is considering changing her tax year. When would she not need IRS permission to change her...
-
How early can amounts be distributed from a qualified plan penalty-free?
-
When might a taxpayer prefer a sale over a like-kind exchange that would result in nonrecognition of gain under Section 1031?
-
Which of the following taxes are deductible for federal income tax purposes as an itemized deduction? a. Ad valorem personal property tax b. FICA tax imposed on employees c. Federal gift tax d. Sales...
-
What is an annuity, and what features determine the amount of income associated with such a contract?
-
Write a paper about History of Sears. Include a SWOT or PEST analysis Issues that led to their bankruptcy.
-
The Cholesterol Level data sets give cholesterol levels of heart attack patients. Cholesterol measures are taken 2, 4, and 14 days aft er a patient has suffered a heart attack. Is there a significant...
-
Sunny Valley Limited produces wine. Certain vintage wines take more than one year to age. The company has borrowed funds to cover the costs of this aging process. The company meets the interest...
-
At December 31, 2014, Ichor Ltd. has outstanding non-cancellable purchase commitments for 45,500 litres of raw material at S3.25 per litre. The material will be used in Ichor's manufacturing process,...
-
The trial balance of Jangles Corporation at the end of its fiscal year, August 31, 2014, includes the following accounts: Purchases $ 151,600; Sales Revenue $250,000; Freight in $4,000; Sales Returns...
-
The basketball player from Example 2 is asked to shoot three free throws 100 times. Compute the mean number of free throws made. Approach The player shoots three free throws and the number made is...
-
A term life insurance policy will pay a beneficiary a certain sum of money upon the death of the policyholder. These policies have premiums that must be paid annually. Suppose an 18- year-old male...
-
Find the standard deviation of the discrete random variable given in Table 1 from Example 2. Approach We will use Formula (2a) with the unrounded mean X = 2.39. Approach We will use Formula (2b)...
Study smarter with the SolutionInn App