The following is the financial statements of CIKU Industries for the year ended December 31, 2020....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following is the financial statements of CIKU Industries for the year ended December 31, 2020. CIKU Industries Income Statement for the Year Ended December 31, 2020 Sales Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes 400,000 212,000 188,000 32,000 20,000 2,000 20,000 74,000 114,000 12,200 101,800 8,720 93,080 Required: CIKU Industries Balance Sheet December 31, 2020 RM 1000 2000 60000 91000 154000 52000 180000 76000 156000 310000 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Land Buildings and equipment Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retained earnings 54000 94000 148000 45900 63000 53100 Total liabilities and stockholders' equity 310000 *Based on a 365-day year and on end-of-year figures. a) Calculate the following financial ratios for CIKU Industries for year 2020. i. Current ratio ii. Quick ratio iii. Inventory turnover. iv. Average collection period. v.Debt ratio vi. Gross profit margin vii. Net profit margin viii. Return on total assets The following is the financial statements of CIKU Industries for the year ended December 31, 2020. CIKU Industries Income Statement for the Year Ended December 31, 2020 Sales Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes 400,000 212,000 188,000 32,000 20,000 2,000 20,000 74,000 114,000 12,200 101,800 8,720 93,080 Required: CIKU Industries Balance Sheet December 31, 2020 RM 1000 2000 60000 91000 154000 52000 180000 76000 156000 310000 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Land Buildings and equipment Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retained earnings 54000 94000 148000 45900 63000 53100 Total liabilities and stockholders' equity 310000 *Based on a 365-day year and on end-of-year figures. a) Calculate the following financial ratios for CIKU Industries for year 2020. i. Current ratio ii. Quick ratio iii. Inventory turnover. iv. Average collection period. v.Debt ratio vi. Gross profit margin vii. Net profit margin viii. Return on total assets
Expert Answer:
Answer rating: 100% (QA)
i Current Ratio Current Ratio Current Assets Current Liabilities 154000 RM 148000 RM 1041 ii Quick R... View the full answer
Related Book For
Principles of Managerial Finance
ISBN: 978-1408271582
Arab World Edition
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Posted Date:
Students also viewed these finance questions
-
Online Tutors, Inc. provides Online tutoring. Currently, families subscribe. A subscription allows them to download worksheets, watch educational videos, and receive 1 hour of tutoring per month....
-
The financial statements of Zach Industries for the year ended December 31, 2015, follow. a. Use the preceding financial statements to complete the following table. Assume that the industry averages...
-
The following are comparative financial statements of the Cohen Company for 2006, 2007, and 2008: Additional information: Credit sales were 65% of net sales in 2007 and 60% in 2008. At the beginning...
-
On May 31 a company's stock price is $70. One million shares are outstanding. An executive exercises 100,000 stock options with a strike price of $50. What is the impact of this on the stock price?
-
Twin Ricky Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for 30 years and now are interested in retiring. They are seeking a purchaser who will...
-
Some of the traditional sustainability reports are an integrated report, a triple bottom line report, and a CSR report. Research the background of these reports and explain the difference between...
-
1. Compare the first-digit frequency in the transactions in this table below with Benfords Law. What are the results? 2. Could fraud be occurring in thisorganization? AMOUNT DESCRIPTION CHECK NO...
-
19 20 Assertion A compass needle is placed near a current carrying wire. The deflection of the compass needle decreases when the magnitude of the current in the wire is increased. Reason The strength...
-
"On 02.01.2020 Company ""X"" purchases equipment for 250.000,00. The useful life of the asset is 5 years. At the end of the year company X registers the depreciation of machinery quota and the...
-
Bolo, Inc. purchases a building by making a cash down payment and borrowing the remaining amount from the bank with a loan that will be due in 5 years. what is impact on this purchase transaction?
-
As an estimator working for a contractor to prepare bid on a project, why is it important to visit the site as part of the cost estimation process Group of answer choices Assess the competition...
-
lila is asked this question, What other information should be considered other than financial for a short-term decision? please respond with a paragraph.
-
In IBM company, how does blockhain work in Proces, transaction initiation, transaction broadcast, block mining , block validation and transaction recording. discuss each.
-
I was given the following information. Should I include it in my Cash Budget and/or in my Income Statement Budgeted? How should it be showed? Received a $2,000 royalty and issued 1000 common shares...
-
The Queen Anne Curiosity Shop wants to expand its database applications beyond the current recording of sales. The company still wants to maintain data on customers, employees, vendors, sales, and...
-
4. Jobe dy -Y 2 et by
-
Common stock value-Constant growth West Island Roofing, Inc., common stock paid a dividend of US$1.20 per share last year. The company expects earnings and dividends to grow at a rate of 5 percent...
-
Jamal Hamza is considering building an investment portfolio containing two stocks, L and M. Stock L will represent 40 percent of the dollar value of the portfolio, and stock M will account for the...
-
During the past 2 years, MBC Industries issued three separate convertible bonds. For each of them, calculate the conversion price. a. A US$1,000-par-value bond that is convertible into 10 shares of...
-
The codon change (Gly-12 to Val-12) in human H-ras that converts it to oncogenic H-ras has been associated with many types of cancers. For this reason, researchers would like to develop drugs to...
-
Outline the general strategy used in metagenomics.
-
You need to understand the approach described in question 3 in More Genetic TIPS before answering this question. A muscle-specific gene was cloned and then subjected to promoter bashing. As shown...
Study smarter with the SolutionInn App