Homework Answers
| Ans. 1 | Gross profit margin = Gross profit / Net sales * 100 | ||||
| 2018 | $136,000 / $501,000 * 100 | 27.15% | |||
| 2017 | $115,000 / $402,000 * 100 | 28.61% | |||
| *Calculations for Gross profit: | |||||
| 2018 | 2017 | ||||
| Net sales | $501,000 | $402,000 | |||
| Less: Cost of goods sold | $365,000 | $287,000 | |||
| Gross profit | $136,000 | $115,000 | |||
| Ans. 2 | Profit margin = Net income / Net sales * 100 | ||||
| 2018 | $33,400 / $501,000 * 100 | 6.67% | |||
| 2017 | $29,700 / $402,000 * 100 | 7.39% | |||
| Ans. 3 | Total assets turnover = Sales / Average assets | ||||
| 2018 | $501,000 / $317,000 | 1.58 | times | ||
| 2017 | $402,000 / $276,500 | 1.45 | times | ||
| *Average assets = (Beginning assets + Ending assets) / 2 | |||||
| 2018 | ($281,000 + $353,000) / 2 | $317,000 | |||
| 2017 | ($272,000 + $281,000) / 2 | $276,500 | |||
| Ans. 4 | Return on assets = Net income / Average assets * 100 | ||||
| 2018 | $33,400 / $317,000 * 100 | 10.54% | |||
| 2017 | $29,700 / $276,500 * 100 | 10.74% | |||
| Ans. 5 | Return on Common stockholder's equity = Net income / Average Common stockholder's equity * 100 | ||||
| 2018 | $33,400 / $117,250 * 100 | 28.49% | |||
| 2017 | $29,700 / $75,750 * 100 | 39.21% | |||
| * Average Stockholder's equity = (Beginning equity + Ending equity) / 2 | |||||
| 2018 | ($100,000 + $134,500) / 2 | $117,250 | |||
| 2017 | ($51,500 + $100,000) / 2 | $75,750 | |||
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Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
Problem 14-5A Condensed statement of financial position and income statement data for Speedway Corporation follow: 2016...
Problem 14-5A Condensed statement of financial position and income statement data for Speedway Corporation follow: 2016 $17,900 48,100 63,700 129,700 SPEEDWAY CORPORATION Statement of Financial Position December 31 2018 2017 Assets Current assets Cash $25,200 $20,100 Accounts receivable (net) 55,300 45,300 Inventory 100,000 85,100 Total current assets 180,500 150,500 Long-term investments 57,500 69,700 Property, plant, and equipment (net) 498,900 371,800 Total assets $736,900 $592,000 Liabilities and Shareholders' Equity Liabilities Current liabilities $85,700 $79,600 Non-current liabilities 155,700 85,400 Total liabilities 241,400...
The return on assets (ROA) model measures: Group of answer choices net profit divided by total...
The return on assets (ROA) model measures: Group of answer choices net profit divided by total assets multiplied by the asset turnover net profit margin times the equity multiplier net profit margin times asset turnover revenues divided by net profit times the asset turnover
Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash...
Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 22,000 Accounts payable $ 127,000 Accounts receivable 81,100 Bonds payable (long term) 85,600 Inventory 50,000 Long-Term Assets Stockholders' Equity Gross fixed assets $ 526,000 Common stock $ 150,000 Less: Accumulated depreciation 150,700 Paid-in capital 70,000 Net fixed assets* 375,300 Retained earnings 95,800 Total assets $ 528,400 Total liabilities and equity $ 528,400 Sales (on credit) $ 1,326,000 Cost of goods sold 790,000...
Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash...
Given the financial statements for Jones Corporation and Smith Corporation: JONES CORPORATION Current Assets Liabilities Cash $ 22,000 Accounts payable $ 127,000 Accounts receivable 81,100 Bonds payable (long term) 85,600 Inventory 50,000 Long-Term Assets Stockholders' Equity Gross fixed assets $ 526,000 Common stock $ 150,000 Less: Accumulated depreciation 150,700 Paid-in capital 70,000 Net fixed assets* 375,300 Retained earnings 95,800 Total assets $ 528,400 Total liabilities and equity $ 528,400 Sales (on credit) $ 1,326,000 Cost of goods sold 790,000...
Required information Exercise 13-10 Efficiency and profitability analysis LO P3 (The following information applies to the...
Required information Exercise 13-10 Efficiency and profitability analysis LO P3 (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable s mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,400 $ 35,000 $ 37,800 87,100 61,500 51,000 111,000 83,600 53,500...
Exercise 13-10 Efficiency and profitability analysis LO P3 [The following information applies to the questions displayed...
Exercise 13-10 Efficiency and profitability analysis LO P3
[The following information applies to the questions
displayed below.]
Simon Company’s year-end balance sheets follow.
At December 31 2017 2016 2015 Assets Cash $32,200 $ 36,250 $ 38,000 63,000 82,000 9,450 251,000 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,700 113,000 10,300 50,500 55,000 5,400 282,000 229,000 $527,200 $441,700 $377,900 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10...
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900: total assets, $189.400; co...
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900: total assets, $189.400; common stock, $90,000: and retained earnings, $22748.) CABOT CORPORATION Income Statement For Year Ended Decenber 31, 2017 ts Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tares Net income $448, 600 297, 250 151, 350 98, 600 4, 100 48, 650 19, 598 $ 29, 052...
Brief Exercise 222 Selected data from the Florida Fruit Company are presented below: Total assets Average...
Brief Exercise 222 Selected data from the Florida Fruit Company are presented below: Total assets Average total assets Net income Net sales Average common stockholders' equity Net cash provided by operating activities $1,500,000 1,850,000 175,000 1,300,000 1,000,000 275,000 Assuming that no dividends were declared or paid during the period. Calculate the profit margin. (Round answer to 1 decimal place, e.g. 15.2%.) Profit margin Compute asset turnover. (Round answer to 2 decimal places, e.g. 0.25.) times Asset turnover Compute return on...
The following information is from the 2017 annual report of Weber Corporation, a company that supplies...
The following information is from the 2017 annual report of
Weber Corporation, a company that supplies manufactured parts to
the household appliance industry.
Average total assets
$
24,500,000
Average interest-bearing debt
10,000,000
Average other liabilities
2,250,000
Average shareholders' equity
12,250,000
Sales
49,000,000
Interest expense
800,000
Net income
2,450,000
Required:
Compute Weber Corporation’s return on assets (ROA) for 2017
using a combined federal and state income tax rate of 40% where
needed.
Compute the profit margin and asset turnover components of...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
Problem 14-5A Condensed statement of financial position and income statement data for Speedway Corporation follow: 2016 $17,900 48,100 63,700 129,700 SPEEDWAY CORPORATION Statement of Financial Position December 31 2018 2017 Assets Current assets Cash $25,200 $20,100 Accounts receivable (net) 55,300 45,300 Inventory 100,000 85,100 Total current assets 180,500 150,500 Long-term investments 57,500 69,700 Property, plant, and equipment (net) 498,900 371,800 Total assets $736,900 $592,000 Liabilities and Shareholders' Equity Liabilities Current liabilities $85,700 $79,600 Non-current liabilities 155,700 85,400 Total liabilities 241,400...
Required information Exercise 13-10 Efficiency and profitability analysis LO P3 (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable s mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,400 $ 35,000 $ 37,800 87,100 61,500 51,000 111,000 83,600 53,500...
Exercise 13-10 Efficiency and profitability analysis LO P3
[The following information applies to the questions
displayed below.]
Simon Company’s year-end balance sheets follow.
At December 31 2017 2016 2015 Assets Cash $32,200 $ 36,250 $ 38,000 63,000 82,000 9,450 251,000 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,700 113,000 10,300 50,500 55,000 5,400 282,000 229,000 $527,200 $441,700 $377,900 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10...
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900: total assets, $189.400; common stock, $90,000: and retained earnings, $22748.) CABOT CORPORATION Income Statement For Year Ended Decenber 31, 2017 ts Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tares Net income $448, 600 297, 250 151, 350 98, 600 4, 100 48, 650 19, 598 $ 29, 052...
Brief Exercise 222 Selected data from the Florida Fruit Company are presented below: Total assets Average total assets Net income Net sales Average common stockholders' equity Net cash provided by operating activities $1,500,000 1,850,000 175,000 1,300,000 1,000,000 275,000 Assuming that no dividends were declared or paid during the period. Calculate the profit margin. (Round answer to 1 decimal place, e.g. 15.2%.) Profit margin Compute asset turnover. (Round answer to 2 decimal places, e.g. 0.25.) times Asset turnover Compute return on...
The following information is from the 2017 annual report of
Weber Corporation, a company that supplies manufactured parts to
the household appliance industry.
Average total assets
$
24,500,000
Average interest-bearing debt
10,000,000
Average other liabilities
2,250,000
Average shareholders' equity
12,250,000
Sales
49,000,000
Interest expense
800,000
Net income
2,450,000
Required:
Compute Weber Corporation’s return on assets (ROA) for 2017
using a combined federal and state income tax rate of 40% where
needed.
Compute the profit margin and asset turnover components of...
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