Use the data given in P13-5 for Prince Company. The comparative financial statements for Prince Company are
Question:
Use the data given in P13-5 for Prince Company.
The comparative financial statements for Prince Company are below:
Required:
1. Compute component percentages for Year 2.
2. Compute the ratios in the DuPont model for Year 2.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Year 2 Year 1 Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income $190,000 112,000 78,000 56,000 22,000 8,000 $ 14,000 $167,000 100,000 67,000 53,000 14,000 4,000 10,000 Year 2 Year 1 Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets S 7,000 18,000 34,000 38,000 $103,000$97.000 $ 4,000 14,000 40,000 45,000 Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity 16,000 45,000 30,000 12,000 $103.000 $17,000 45,000 30,000 5,000 $97,000
Step by Step Answer:
Req 1 Component Percentages 2015 Income statement Sales revenue the base amount 10...View the full answer
Financial Accounting
ISBN: 978-1259222139
9th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Cost Accounting questions
-
Use the data given in P13 1 for Goldfish Company. In exercise Required: 1. Present component percentages for 2014 only. 2. Answer the following for 2014: a. What was the average percentage markup on...
-
Use the data given in P14-6 for Prince Company. Required: 1. Present component percentages for 2012 only. 2. Respond to the following for 2012: a. What was the average percentage markup on sales? b....
-
Use the data given in Short Exercise 8-1. On May 21, 2013, Mail 4 You sold its investment in Tycon stock for $23 per share. 1. Journalize the sale. No explanation is required. 2. How does the gain or...
-
Tell whether the given side lengths form a right triangle. 8, 10, and 14
-
Moon Electronics sells television sets and other sound and video equipment. Sales and expected warranty claims for the year are as follows: Required: Prepare the entry to record warranty expense for...
-
Suppose in an experiment, you randomly hand out a chocolate to half of the subjects in a large group. You then allow the subjects to trade the chocolate. That is, the ones who own the chocolate can...
-
In this exercise you will use $\mathrm{R}$ to compute the normal density and the cumulative distribution functions using dnorm and pnorm. a. For any given values of mu, sigma, and y, what value does...
-
On January 1, Lyon Corporation purchased a 25% equity investment in Shane Corporation for $150,000. At December 31, Shane declared and paid a $80,000 cash dividend and reported net income of...
-
7- Suppose that you are editing a file that contains the following paragraph and the cursor is on the second tilde (~): The vim editor has a command, tilde (~), that changes lowercase letters to...
-
The audit staff of Adams, Barnes & Co. (ABC), CPAs, reported the following audit findings in their 20X5 audit of Keystone Computers & Networks (KCN), Inc.: 1. Unrecorded liabilities in the amount of...
-
The comparative financial statements for Prince Company are below: Required: 1. Complete the following columns for each item in the preceding comparative financial statements: INCREASE (DECREASE)...
-
Use the data in P13-5 for Prince Company. Assume that the stock price per share is $28 and that dividends in the amount of $3.50 per share were paid during Year 2. Compute the following ratios: ...
-
Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash and Nichols contributes $10,000 cash and equipment with a cost of $7,000 and accumulated...
-
With reference to the figure and data from the Exercise 4.4, determine the work done by the frictional force when the bucket dropped \(h=42 \mathrm{~cm}\). Find the velocity required in step 3 )...
-
Create an account at About.Me. Your account will serve as the basis for your social footprint. Begin to link your existing social media accounts to your footprint page. Identify other social...
-
A solid spherical ball of radius \(R=1.0 \mathrm{~cm}\) and mass \(M=2.0 \mathrm{~g}\) rolls, without crawling, on a horizontal plane with center-of-mass velocity equal to \(v_{0}=0.80 \mathrm{~m} /...
-
Find diagonal state equations for a system with transfer function \[ \mathrm{T}(s)=\frac{\mathrm{Y}(s)}{\mathrm{R}(s)}=\frac{s^{3}+18 s^{2}+50 s+50}{(s+3)(s+4)(s+5)} \]
-
Two blocks of mass \(M_{1}=1.20 \mathrm{~kg}\) and \(M_{2}=0.25 \mathrm{~kg}\) are hung as in Fig. 4.15: \(M_{1}\) is hung from the ceiling by an inextensible wire of negligible mass, while \(M_{2}\)...
-
To reduce natural gas use in the previous problem, a suggestion is to take and cool the mixture and condense out some water before heating it again. So, the flow is cooled from 90C to 50C and the...
-
What are the two components of a company's income tax provision? What does each component represent about a company's income tax provision?
-
To compare statement of cash flows reporting under the direct and indirect methods, enter check marks to indicate which items are used with each method. Cash Flows (and Related Changes) 1. Accounts...
-
Hanks Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets...
-
Golden Deer Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance...
-
Consider a $1000 face value 3-year treasury with 2.5% annual coupon and a yield of 1.3%. Suppose that after one year and after receiving one coupon payment, you decide to sell your treasury note....
-
How in a perfect world would muni bonds pay interest? Explain the correlation between the greater premium and high tax states. Will you invest in Muni bonds based on the new findings? Please discuss.
-
CityLight Co. is struggling financially. Prior to debt renegotiations, the company's total assets were $11 million and total liabilities were $18 million. The company has negotiated with the debtors...
Study smarter with the SolutionInn App