The Hill Company reported the following results:
Year 3 | Year 2 | Year 1 | |||
Income Statement | |||||
Revenue | 10,972 | 11,598 | 10,470 | ||
Cost of Goods Sold | 8,942 | 8,767 | 7,901 | ||
Selling, General & Admin. Expenses | 2,470 | 2,611 | 2,479 | ||
Interest expense | 76 | 80 | 28 | ||
Net Income | (516) | 140 | 62 | ||
Balance Sheet | |||||
Assets | |||||
Cash | 1,354 | 1,316 | 1,880 | ||
Prepaid expenses | 202 | 522 | 125 | ||
Accounts receivable | 375 | 250 | 231 | ||
Inventory | 745 | 698 | 455 | ||
Property & equipment (net) | 20,464 | 18,810 | 17,727 | ||
Total Assets | 23,140 | 21,596 | 20,418 | ||
Liabilities | |||||
Accounts payable | 2,824 | 743 | 678 | ||
Unredeemed gift cards | 410 | 850 | 636 | ||
Notes Payable | 15,457 | 18,048 | 17,024 | ||
Stockholders' Equity | |||||
Common Stock | 985 | 545 | 815 | ||
Retained Earnings | 3,464 | 1,410 | 1,265 | ||
Total Liabilities & Equity | 23,140 | 21,596 | 20,418 |
1. What is the company's gross profit ratio for Year 3? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
2. What is the company's return on investment ratio for Year 1? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
3. Based on the three years of data, the company's return on investment ratio has
a) improved.
b) worsened.
c) stayed the same.
Answer:
Gross Profit % = Gross Profit / Sales
Year 3 = ( 10972 - 8942 ) / 10972 = 18.5%
Year 2 = ( 11598 - 8767 ) / 11598 = 24.41%
Year 1 = ( 10470 - 7901 ) / 10470 = 24.54%
Return on Investment = Net Income / (Long Term Liabilities + Stockholders Equity
Where Note Payable is Current Liability
Year 3 = -516 / (985 + 3464) = -11.6%
Year 2 = 140 / ( 545 + 1410 ) = 7.16%
Year 1 = 62 / ( 815 + 1265 ) = 2.98%
The ratio improved in Year 2 but failed miserably or worsened in Year 3
Where Note Payable is Long Term Liability
Year 3 = -516 / (985 + 3464 + 15457 ) = -2.6%
Year 2 = 140 / ( 545 + 1410 + 18048) = 0.699%
Year 1 = 62 / ( 815 + 1265 + 17024 ) = 0.324%
The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement Revenue...
The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement Revenue 10,972 11,598 10,470 Cost of Goods Sold 8,942 8,767 7,901 Selling, General & Admin. Expenses 2,470 2,611 2,479 Interest expense 76 80 28 Net Income (516) 140 62 Balance Sheet Assets Cash 1,354 1,316 1,880 Prepaid expenses 202 522 125 Accounts receivable 375 250 231 Inventory 745 698 455 Property & equipment (net) 20,464 18,810 17,727 Total Assets 23,140 21,596 20,418 Liabilities Accounts payable...
The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement Revenue...The Hill Company reported the following results:Year 3Year 2Year 1Income StatementRevenue10,97211,59810,470Cost of Goods Sold8,9428,7677,901Selling, General & Admin. Expenses2,4702,6112,479Interest expense768028Net Income(516)14062Balance SheetAssetsCash1,3541,3161,880Prepaid expenses202522125Accounts receivable375250231Inventory745698455Property & equipment (net)20,46418,81017,727Total Assets23,14021,59620,418LiabilitiesAccounts payable2,824743678Unredeemed gift cards410850636Notes Payable15,45718,04817,024Stockholders' EquityCommon Stock985545815Retained Earnings3,4641,4101,265Total Liabilities & Equity23,14021,59620,418What is the company's days sales in accounts receivable ratio for Year 3? Round your final answer to one decimal place.
The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement Revenue 10,972 11,598 10,470 Cost of Goods Sold 8,942 8,767 7,901 Selling, General & Admin. Expenses 2,470 2,611 2,479 Interest expense 76 80 28 Net Income (516) 140 62 Balance Sheet Assets Cash 1,354 1,316 1,880 Prepaid expenses 202 522 125 Accounts receivable 375 250 231 Inventory 745 698 455 Property & equipment (net) 20,464 18,810 17,727 Total Assets 23,140 21,596 20,418 Liabilities Accounts payable...
1. For a horizontal analysis, what is the percent change in
revenues for year 3? Convert your final answer to a percentage, and
round one decimal place.
2. What is the company's current ratio for year 2? Round your
final answer to two decimal places.
The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement 10,972 11,598 8,767 10,470 7,901 8,942 Revenue Cost of Goods Sold Selling, General & Admin. Expenses Interest expense Net Income...
Question 2 0/1 pts What is the company's current ratio for Year 2? Round your final answer to two decimal places. 0.15 0.5/0.5 pts Question 3 ny's current ratio is Year 3 Year 2 Year 1 10,972 8,942 11,598 8,767 10,470 7,901 Income Statement Revenue Cost of Goods Sold Selling, General & Admin. Expenses Interest expense Net Income 2,470 2,611 2,479 76 80 (516) 140 1,880 Balance Sheet Assets Cash Prepaid expenses Accounts receivable Inventory Property & equipment (net) Total...