Answer to Requirement 1.
Return on Equity = Net Income/ Total Equity * 100
Total Equity = Capital Stock + Additional Paid- in capital + Retained Earnings
Blue Water Company:
Total Equity = $148,000 + $29,000 + $61,000 = $238,000
Return on Equity = $45,000/ $238,000 * 100
Return on Equity = 18.91%
Prime Fish Company:
Total Equity = $512,000 + $106,000 + $71,000 = $689,000
Return on Equity = $91,000/ $689,000 * 100
Return on Equity = 13.21%
Answer to Requirement 2.
Return on Assets = Net Income / Total Assets * 100
Blue Water Company:
Return on Assets = $45,000/ $402,000 * 100
Return on Assets = 11.19%
Prime Fish Company:
Return on Assets = $91,000/ $798,000 * 100
Return on Assets = 11.40%
Answer to Requirement 3.
Gross Profit Percentage = Gross Profit/ Net Sales * 100
Gross Profit = Net Sales - Cost of Goods sold
Blue Water Company:
Gross Profit = $447,000 - $241,000 = $206,000
Gross Profit Percentage = $206,000/ $447,000 * 100
Gross Profit Percentage = 46.09%
Prime Fish Company:
Gross Profit = $802,000 - $400,000 = $402,000
Gross Profit Percentage = $402,000/ $802,000 * 100
Gross Profit Percentage = 50.12%
Answer to Requirement 4.
Net Profit Margin = Net Income/ Net Sales * 100
Blue Water Company:
Net Profit Margin = $45,000/ $447,000 * 100
Net Profit Margin = 10.07%
Prime Fish Company:
Net Profit Margin = $91,000/ $802,000 * 100
Net Profit Margin = 11.35%
The current year financial statements for Blue Water Company and Prime Fish Company are presented below....
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property &equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of...
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock $10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end...
Question 32 Balance sheet Cash $41,000 $21,000 Account receivable (net) 38,000 31,000 Inventory 99,000 40,000 Property & equipment 140,000 401,000 Other assets 84,000 305,000 Total assets $402,000 $798,000 Current liabilities $ 99,000 $49,000 Long term debt (interest rate: 10%) 65,000 60,000 Capital stock ($10 per value) 148,000 512,000 Additional paid in capital 29,000 106,000 Retainined earning 61,000 71,000 Total liabilities and stockholders equity $402,000 $798,000 Income Statement Sales revenue (1/3 on credit) $447,000 $802,000 Cost of goods sold (241,000 (400,000)...
Question 32 Balance sheet Cash $41,000 $21,000 Account receivable (net) 38,000 31,000 Inventory 99,000 40,000 Property & equipment 140,000 401,000 Other assets 84,000 305,000 Total assets $402,000 $798,000 Current liabilities $ 99,000 $49,000 Long term debt (interest rate: 10%) 65,000 60,000 Capital stock ($10 per value) 148,000 512,000 Additional paid in capital 29,000 106,000 Retainined earning 61,000 71,000 Total liabilities and stockholders equity $402,000 $798,000 Income Statement Sales revenue (1/3 on credit) $447,000 $802,000 Cost of goods sold (241,000 (400,000)...
For the following chart, the left column is Walmart and the right column is CVS. Both have been in business for 10 years with steady growth but each business has a different viewpoint in many respects. Walmart is more conservative, and as its president has said, “We avoid what we consider to be undue risk.” Neither company is publicly held. Create a schedule that shows ratio analysis for Walmart and CVS (show work if needed). WALMART CVS Profitability Ratio 1....
I created a schedule of the ratio analysis with the information given. I am missing three ratios. I need to show work and find: 'Quality of Income' and 'Times interest earned ratio' and 'cash coverage ratio'. Use the photos to help find those three ratios. Blue Water Prime Fish Balance sheet: $ 42,100 $ Cash Accounts receivable (net) 19,900 34,300 43,500 Inventory 93,500 46,600 156,500 414,200 Property & equipment (net) Other assets 85,100 316,000 Total assets $ 831,000 $ 420,700...
The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years Ended December 31 2017 2016 Net sales $1,899,640 $1,759,600 Cost of goods sold 1,067,640 1,015,100 Gross profit 832,000 744,500 Selling and administrative expenses 509,100 488,100 Income from operations 322,900 256,400 Other expenses and losses Interest expense 24,100 22,100 Income before income taxes 298,800 234,300 Income tax expense 94,100 75,100 Net income $ 204,700 $ 159,200 SHERIDAN COMPANY Balance Sheets December 31 Assets 2017 2016...
The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,734,400 $1,610,000 Cost of goods sold 967,000 925,520 Gross profit 767,400 684,480 Selling and administrative expenses 460,000 440,680 Income from operations 307,400 243,800 Other expenses and losses Interest expense 20,240 18,400 Income before income taxes 287,160 225,400 Income tax expense 86,148 67,620 Net income $ 201,012 $ 157,780 SHERIDAN COMPANY Balance Sheets December 31 Assets 2022 2021...
Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 19,000 $ 35,000 Accounts receivable, net 37,400 54,400 Merchandise inventory 84,340 134,500 Prepaid expenses 5,800 7,600 Plant assets, net 320,000 305, 400 Total assets $466,540 $536,900 Barco Kyan Company Company Data from the current year's income statement Sales $ 790,000 $901,200 cost of goods sold 591 100 640, 500 Interest expense 8,500 16,000 Income tax expense 15 185 24,879 Net income 175, 215 219,821 Basic earnings...
Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash • What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income...