QUE (1a) The following data have been gathered from the financial statements of HiFly Corporation ....
QUE (1a) The following data have been gathered from the financial statements of HiFly Corporation .
2015 2016
Operating prof $550, 000, 000 $ 600, 000, 000
Interest expenses $ 200. 000, 000 $ 250, 0000, 000
Taxes $ 126, 000, 000 $ 126, 000, 000
Net profit $ 224, 000, 000 $ 224, 000, 000
Calculate the times interest earned ratios for 2015 and 2016. Is the company more or less able to meet its interest payments in 2016 when measured this way?
(1b) GrowthCo had sales of $ 55 million in 2016 and is expected to have sales of $ 83, 650, 000 for 2017. The company's net profit margin was 5% in 2016 and is expected to increase to 8% by 2017, Estimate the company's net profit for 2017.
Homework Answers
1a. Times Interest earned ratio = Operating Profit / Interest Expense
Times Interest earned ratio (2015) = $550,000/$200,000 = 2.75
Times Interest earned ratio (2016) = $600,000/$250,000 = 2.40
When measures this way, company is less able to meet its interest payment in 2016 when compared with 2015.
1b. Net Profit for 2017 = $83,650,000 * 8% = $6,692,000
Add Answer to:
QUE (1a) The following data have been gathered from the
financial statements of HiFly Corporation ....
The following data have been gathered from the financial statements of General Nutrition Centers: 3. Calculate...
The following data have been gathered from the financial statements of General Nutrition Centers: 3. Calculate the times interest earned ratios for 2016 and 2017. Is the company more or less able to meet its interest payments in 2017 when measured this way? The firm's times interest earned ratio for 2016 is . (Round to two decimal places.) The firm's times interest earned ratio for 2017 is . (Round to two decimal places.) Is the company more or less able...
Michael and Simphiwe have been successfully running a retail business for a few years now, but...
Michael and Simphiwe have been successfully running a retail business for a few years now, but have decided it is time to expand and would like your help in analysing their financial statements. You may require the following information to assist them: The business is a public company trading at R18 per share at the end of 2016 and was trading at R19 per share at the end of 2015. There are 10 000 000 ordinary shares in issue, and...
Selected data from the financial statements of Crossette Garden Centre is provided below. 2017 2016 Accounts...
Selected data from the financial statements of Crossette Garden Centre is provided below. 2017 2016 Accounts receivable $70 000 $46 000 Inventory 10 000 17 000 Total assets 470 000 360 000 Net sales 350 000 270 000 Cost of goods sold 170 000 220 000 Which of the following would result from a horizontal analysis of the company's statement of comprehensive income? Cost of goods sold is 44.75% of net sales for 2017 Net Sales increased $80 000 or...
The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the ...
The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data 2017 2016 Income Statement Sales Revenue* Cost of Goods Sold $110,000 $ 99,000 48,000 52,000 Gross Profit Operating Expenses Interest Expense 58,000 36,000 4,000 51,000 33,000 4,000 Income before Income Tax Expense Income Tax Expense (30%) 18,000 5,400 14,000 4,200 Net Income $ 12,600 9,800 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 49,500 18,000 32,000 38,000 95,000 105,000...
Selected data from Kamal Company's financial statements is as follows: In $000's 2017 2016 Current liabilities...
Selected data from Kamal Company's financial statements is as follows: In $000's 2017 2016 Current liabilities $ 5,130 $ 5,202 Long-term debt 1,419 1,322 Stockholders' equity 12,632 11,166 Interest and principal payments 300 400 Net income 2,430 2,280 Interest expense 196 172 Income taxes 1,837 1,524 Dividends paid 750 750 Kamal Company's debt-to-equity ratio for 2017 is Select one: A. an indicator that Kamal Company's ability to meet current interest payments to creditors is increasing. B. increasing slightly from 2016...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $4,800,000 $4,400,000 $4,000,000 Notes payable (8% interest) 2,250,000 2,250,000 2,250,000 Common stock 250,000 250,000 250,000 Preferred 4% stock, $100 par (no change during year) 500,000 500,000 500,000 Retained earnings 1,574,000 1,222,000 750,000 The 2017 net income was $372,000, and the 2016 net income was $492,000. No dividends on common stock were...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $162,000 $146,000 $130,000 Notes payable (8% Interest) 50,000 50,000 50,000 Common stock 20,000 20,000 20,000 Preferred 4% stock, $100 par 10,000 10,000 10,000 (no change during year) Retained earnings 60,560 39,780 30,000 The 2017 net income was $21,180, and the 2016 net income was $10,180. No dividends on common stock were...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were...
Selected data from Kamal Company's financial statements is as follows: In $000's 2017 2016 Current liabilities...
Selected data from Kamal Company's financial statements is as follows: In $000's 2017 2016 Current liabilities $ 5,130 $ 5,202 Long-term debt 1,419 1,322 Stockholders' equity 12,632 11,166 Interest and principal payments 300 400 Net income 2,430 2,280 Interest expense 196 172 Income taxes 1,837 1,524 Dividends paid 750 750 Kamal Company's times interest earned ratio for 2017 Select one: A. shows an increase in the company's ability to make its interest payments. B. increased, which indicates the company's creditors...
Exercise 13-13 The condensed financial statements of Cullumber Company for the years 2016 and 2017 are...
Exercise 13-13 The condensed financial statements of Cullumber Company for the years 2016 and 2017 are presented below. CULLUMBER COMPANY Balance Sheets December 31 (in thousands) 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses $330 $360 650 580 620 550 130 160 1,730 1,650 410 380 190 190 530510 $2,860 $2,730 $1,000 $970 540 1,220 1,220 Total current assets Property, plant, and equipment (net) Investments Intangibles and other assets Total assets Current liabilities Long-term...
The following data have been gathered from the financial statements of General Nutrition Centers: 3. Calculate the times interest earned ratios for 2016 and 2017. Is the company more or less able to meet its interest payments in 2017 when measured this way? The firm's times interest earned ratio for 2016 is . (Round to two decimal places.) The firm's times interest earned ratio for 2017 is . (Round to two decimal places.) Is the company more or less able...
Michael and Simphiwe have been successfully running a retail business for a few years now, but have decided it is time to expand and would like your help in analysing their financial statements. You may require the following information to assist them: The business is a public company trading at R18 per share at the end of 2016 and was trading at R19 per share at the end of 2015. There are 10 000 000 ordinary shares in issue, and...
The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data 2017 2016 Income Statement Sales Revenue* Cost of Goods Sold $110,000 $ 99,000 48,000 52,000 Gross Profit Operating Expenses Interest Expense 58,000 36,000 4,000 51,000 33,000 4,000 Income before Income Tax Expense Income Tax Expense (30%) 18,000 5,400 14,000 4,200 Net Income $ 12,600 9,800 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 49,500 18,000 32,000 38,000 95,000 105,000...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $4,800,000 $4,400,000 $4,000,000 Notes payable (8% interest) 2,250,000 2,250,000 2,250,000 Common stock 250,000 250,000 250,000 Preferred 4% stock, $100 par (no change during year) 500,000 500,000 500,000 Retained earnings 1,574,000 1,222,000 750,000 The 2017 net income was $372,000, and the 2016 net income was $492,000. No dividends on common stock were...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $162,000 $146,000 $130,000 Notes payable (8% Interest) 50,000 50,000 50,000 Common stock 20,000 20,000 20,000 Preferred 4% stock, $100 par 10,000 10,000 10,000 (no change during year) Retained earnings 60,560 39,780 30,000 The 2017 net income was $21,180, and the 2016 net income was $10,180. No dividends on common stock were...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were...
Exercise 13-13 The condensed financial statements of Cullumber Company for the years 2016 and 2017 are presented below. CULLUMBER COMPANY Balance Sheets December 31 (in thousands) 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses $330 $360 650 580 620 550 130 160 1,730 1,650 410 380 190 190 530510 $2,860 $2,730 $1,000 $970 540 1,220 1,220 Total current assets Property, plant, and equipment (net) Investments Intangibles and other assets Total assets Current liabilities Long-term...
Most questions answered within 3 hours.
-
Which of the following statements are true?
1. Glass is mostly silicon dioxide and so when...
asked 15 minutes ago -
Korman Company has the following securities in its portfolio of
equity securities on December 31, 2018:...
asked 15 minutes ago -
Using the 12th edition of Language Awareness,
complete the following assignment:
After reading Akiba Solomon's "Thugs....
asked 26 minutes ago -
For all problems assume an effective monthly interest rate of 1%
unless otherwise indicated in the...
asked 37 minutes ago -
Fix all syntax and logical errors for the following program.
Please generate the correct output. //...
asked 45 minutes ago -
The USPS sells money orders identified by an 11 –digit number
x1, x2, …, x11. The...
asked 49 minutes ago -
Provide an example of equilibrium in relation to
Newton’s First and Second Laws. Explain your answer....
asked 50 minutes ago -
You are __________ to commit a Type I error using the 0.05 level
of significance than...
asked 1 hour ago -
1. the following results are obtained:
200
kiwi
575 wild-type
What can we conclude about the...
asked 1 hour ago -
Explain how you might use E. coli bacteria to produce human
growth hormone using the following:...
asked 1 hour ago -
WHAT IS THE EFFEKT OF ADD K2CO3 TO ( METHANOL OG WATER)?
asked 1 hour ago -
Calculate the cell potential, the equilibrium constant, and the
free-energy change for: Ca(s)+Mn2+(aq)(1M)⇌Ca2+(aq)(1M)+Mn(s) given
the following...
asked 1 hour ago