Homework Answers
|
2018 |
2019 |
2020 |
|
|
sale |
100% |
100% |
100% |
|
cost of goods sold |
60% |
68% |
70% |
|
gross profit |
40% |
32% |
30% |
|
other expense |
25.96% |
28.57% |
22.47% |
|
income tax |
4.20% |
1.02% |
2.25% |
|
net income |
9.82% |
2.40% |
5.27% |
|
2018 |
|
Current ratio = Current Assets / Current liabilities |
|
= 205,500 / 101,000 |
|
= 2.03:1 |
|
quick ratio = current assets - inventory / current liabilities |
|
= 205,500 - 115,000 / 101,000 |
|
= 0.89 |
|
A/R turnover ratio is not possible as opening balance of account receivable is not given |
|
average collection period is not possible as opening balance of account receivable is not given |
|
inventory turnover is not possible as opening balance of inventory is not given |
|
days to sell inventory is not possible as opening balance of inventory turnover ratio can’t be found. |
|
2019 |
|
Current ratio = Current Assets / Current liabilities |
|
= 205,700 / 50,500 |
|
= 4.07:1 |
|
quick ratio = current assets - inventory / current liabilities |
|
= 205,700 - 136,000 / 50,500 |
|
= 1.38 |
|
Receivable turnover = net credit sale / average receivable |
|
= 770,000 / 58,600 |
|
= 13.13 times |
|
average collection period = 365 / receivable turnover |
|
= 365 / 13.13 |
|
= 27.79 days |
|
Inventory turnover = Cost of goods sold / average inventory |
|
= 523,600 / 125,500 |
|
= 4.17 times |
|
days to sell inventory = 365 / inventory turnover |
|
= 365 / 4.17 |
|
= 87.52 days |
|
2020 |
|
Current ratio = Current Assets / Current liabilities |
|
= 398,600 / 101,000 |
|
= 3.94:1 |
|
quick ratio = current assets - inventory / current liabilities |
|
= 398,600 - 227,000 / 101,000 |
|
= 1.70 |
|
Receivable turnover = net credit sale / average receivable |
|
= 970,000 / 97,250 |
|
= 9.97 times |
|
average collection period = 365 / receivable turnover |
|
= 365 / 9.97 |
|
= 36.60 days |
|
Inventory turnover = Cost of goods sold / average inventory |
|
= 679,000 / 181,500 |
|
= 3.74 times |
|
days to sell inventory = 365 / inventory turnover |
|
= 365 / 3.74 |
|
= 97.59 days |
|
2018 |
2019 |
2020 |
|
|
current ratio |
2.03 |
4.07 |
3.94 |
|
quick ratio |
0.89 |
1.38 |
1.7 |
|
A/R turnover |
- |
13.13 |
9.97 |
|
average collection period |
- |
27.29 |
36.6 |
|
inventory turnover |
- |
4.17 |
3.74 |
|
days to sell inventory |
- |
87.52 |
97.59 |
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(Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for...
Application Problem 12-15A ai, b1 (Part Level Submission) (Ratio analysis over time) The following information comes fr...
Application Problem 12-15A ai, b1 (Part Level Submission) (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $23,300 67,200 115,000 432,000 238,000 $875,500 $19,700 $27,100 50,000 144,500 136,000 227,000 459,000 484,000 204,000 268,600 $868,700 $1,151,200 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $101,000 192,000 521,000...
Application Problem 12-15A a1, b1 (Part Level Submission) (Ratio analysis over time) The following information comes...
Application Problem 12-15A a1, b1 (Part Level Submission) (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $23,300 67,200 115,000 432,000 238,000 $875,500 $19,700 $27,100 50,000 144,500 136,000 227,000 459,000 484,000 204,000 268,600 $868,700 $1,151,200 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $101,000 192,000 521,000...
Accounting please help me with this question ASAP
(Ratio analysis over time)The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence:201820192020Statement of Financial PositionAssets Cash$22,300$19,200$25,100 Accounts receivable67,40058,500149,500 Inventory113,000139,000224,000 Capital assets (net)425,000455,000468,000 Other assets235,000205,000265,200$862,700$876,700$1,131,800Liabilities and equity Accounts payable$117,000$58,500$117,000 Long-term debt184,000234,000468,000 Common shares517,000517,000517,000 Retained earnings44,70067,20029,800$862,700$876,700$1,131,800Statement of Earnings Sales$700,000$815,000$915,000 Cost of goods sold(434,000)(554,200)(640,500) Other expenses(160,000)(235,000)(233,000)106,00025,80041,500 Income tax(31,800)(7,740)(12,450) Net income$74,200$18,060$29,050Based on above information, analyze the changes in the company’s profitability and liquidity, in addition to the management of accounts receivable and inventory from 2018 to 2020. (Round answers to 1 decimal place, e.g. 13.5% or 13.5.)201820192020Sales % % %Cost of goods sold % % %Gross...
AP12-15A The following information comes from the accounting records of Hercep Ltd. for the first three...
AP12-15A The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets : Cash $22,500 $20,000 $25,000 Accounts receivable 67,500 50,000 145,000 Inventory 110,000 130,000 220,000 Capital assets (net) 430,000 450,000 500,000 Other assets 232,000 210,000 266,400 Total : $862,000 $860,000 $1,156,400 Liabilities and equity: Accounts payable $100,000 $50,000 $100,000 Long-term debt 200,000 250,000 500,000 Common shares 525,000 525,000 525,000 Retained earning 37,000 35,000...
I NEED URGENT HELP PLEASE, MY ASSIGNMENT IS DUE IN HALF AN HOUR. THANK YOU IN...
I NEED URGENT HELP PLEASE, MY ASSIGNMENT IS DUE IN HALF AN HOUR.
THANK YOU IN ADVANCE!!
Current Attempt in Progress (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $22,000 $19,000 $25,000 66,500 50,000 140,000 100,000 130,000 220,000 420,000 450,000 460,000 230,000 200,000 265,000 $838,500 $849,000 $1,110,000 Liabilities...
The comparative statements of Flint Interiors Ltd. are presented as follows: FLINT INTERIORS LTD. Income Statement...
The comparative statements of Flint Interiors Ltd. are presented as follows: FLINT INTERIORS LTD. Income Statement For the Year Ended December 31, 2021 Net sales $2,087,750 Cost of goods sold 1,155,000 Gross profit 932,750 Selling and administrative expenses 520,000 Income from operations 412,750 Other expenses and losses Interest expense 15,500 Income before income taxes 397,250 Income tax expense 104,275 Profit $292,975 2020 $1,810,500 1,012,500 798,000 484,000 314,000 12,000 302,000 84,000 $218,000 FLINT INTERIORS LTD. Balance Sheet December 31 2021 2020...
The comparative statements of Enchanted Ltd are presented here. ENCHANTED LTD Statement of profit or loss...
The comparative statements of Enchanted Ltd are
presented here.
ENCHANTED LTD
Statement of profit or loss
for the years ended 30 June
2019
2020
Net sales
$1340000
$1180000
Cost of sales
656600
542800
Gross profit
683400
637200
Selling and administrative expense
300696
439668
Finance costs
27336
57348
Profit before income tax
355368
140184
Income tax expense
95949
35046
Profit for the period
$259419
$105138
ENCHANTED LTD
Statement of financial position
as at 30 June
Assets
2019
2020
Current assets
Cash...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $810,000 $891,200 Cash $ 18,500 $ 34,000 Cost of goods sold 587,100 638,500 Accounts receivable, net 38, 400 58, 400 Interest expense...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 37,000 Accounts receivable, net 39,400 55,400 Current notes receivable (trade) 9,800 8,000 Merchandise inventory 84,640 132,500 Prepaid expenses 5,300 7,650 Plant assets, net 310,000 1304,400 Total assets $468,640 $544,950 Data...
1.2. 3. 4. 4 homework questions, Help ! Brief Exercise 18-11 al-a2 The following data are...
1.2.
3.
4.
4 homework questions, Help !
Brief Exercise 18-11 al-a2 The following data are taken from the financial statements of Colby Company. 2019 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 2020 $555,000 4,033,250 $550,000 3,065,250 Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $455,000. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Accounts receivable turnover times times LINK...
Application Problem 12-15A ai, b1 (Part Level Submission) (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $23,300 67,200 115,000 432,000 238,000 $875,500 $19,700 $27,100 50,000 144,500 136,000 227,000 459,000 484,000 204,000 268,600 $868,700 $1,151,200 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $101,000 192,000 521,000...
Application Problem 12-15A a1, b1 (Part Level Submission) (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $23,300 67,200 115,000 432,000 238,000 $875,500 $19,700 $27,100 50,000 144,500 136,000 227,000 459,000 484,000 204,000 268,600 $868,700 $1,151,200 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $101,000 192,000 521,000...
I NEED URGENT HELP PLEASE, MY ASSIGNMENT IS DUE IN HALF AN HOUR.
THANK YOU IN ADVANCE!!
Current Attempt in Progress (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $22,000 $19,000 $25,000 66,500 50,000 140,000 100,000 130,000 220,000 420,000 450,000 460,000 230,000 200,000 265,000 $838,500 $849,000 $1,110,000 Liabilities...
The comparative statements of Flint Interiors Ltd. are presented as follows: FLINT INTERIORS LTD. Income Statement For the Year Ended December 31, 2021 Net sales $2,087,750 Cost of goods sold 1,155,000 Gross profit 932,750 Selling and administrative expenses 520,000 Income from operations 412,750 Other expenses and losses Interest expense 15,500 Income before income taxes 397,250 Income tax expense 104,275 Profit $292,975 2020 $1,810,500 1,012,500 798,000 484,000 314,000 12,000 302,000 84,000 $218,000 FLINT INTERIORS LTD. Balance Sheet December 31 2021 2020...
The comparative statements of Enchanted Ltd are
presented here.
ENCHANTED LTD
Statement of profit or loss
for the years ended 30 June
2019
2020
Net sales
$1340000
$1180000
Cost of sales
656600
542800
Gross profit
683400
637200
Selling and administrative expense
300696
439668
Finance costs
27336
57348
Profit before income tax
355368
140184
Income tax expense
95949
35046
Profit for the period
$259419
$105138
ENCHANTED LTD
Statement of financial position
as at 30 June
Assets
2019
2020
Current assets
Cash...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $810,000 $891,200 Cash $ 18,500 $ 34,000 Cost of goods sold 587,100 638,500 Accounts receivable, net 38, 400 58, 400 Interest expense...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,500 $ 37,000 Accounts receivable, net 39,400 55,400 Current notes receivable (trade) 9,800 8,000 Merchandise inventory 84,640 132,500 Prepaid expenses 5,300 7,650 Plant assets, net 310,000 1304,400 Total assets $468,640 $544,950 Data...
1.2.
3.
4.
4 homework questions, Help !
Brief Exercise 18-11 al-a2 The following data are taken from the financial statements of Colby Company. 2019 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 2020 $555,000 4,033,250 $550,000 3,065,250 Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $455,000. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Accounts receivable turnover times times LINK...
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