Homework Answers
1a. Gross profit ratio = Gross profit / Sales * 100
Current year = $67,000 / 125,000 * 100 = 53.6%
Previous year = $57,000 / 111,000 * 100 = 51.4%
1b. Better
2a. Net profit margin = Net profit / Sales * 100
Current year = $16,590 / 125,000 *100 = 13.3%
Previous year = $12,110 / 111,000 *100 = 10.9%
2b. Better
3a. Earning per share = Net income / Weighted average outstanding common stock
Current year = $16,590 / 9,180 = $1.81
Previous year = $12,110 / 9,180 = $1.32
3b. Better
4a. Return on equity ratio = Net income / Average stockholders equity
Current year = $16,590 / (130,340+120,650/2)
Current year = $16,590 / $125,495 * 100 = 13.2%
Previous year = $12,110 / (120,650+103,000/2)
Previous year = $12,110 / $111,825 * 100 = 10.8%
4b. Better
5a. Fixed asset turnover ratio = Sales revenue / Average fixed assets
Current year = $125,000 / (98,000+108,000/2)
Current year = $125,000 / $103,000 = 1.21
Previous year = $111,000 / (108,000+113,000/2)
Previous year = $111,000 / $110,500 = 1.00
5b. Better
6a. Debt to asset ratio = Total debt / Total assets
Current year = $89,075 / 219,415 = 0.41
Previous year = $78,350 / 199,000 = 0.39
6b. Larger proportion
7a. Times interest earned ratio = Income before interest and tax / interest expense
Current year = $67,000 - 39,000 / 4,300 = 6.5
Previous year = $57,000 - 35,400 / 4,300 = 5
7b. Better
8a. Price earning ratio = Market price per share / earning per share
Current year = $21 / 1.81 = 11.6
Previous year = $18 / 1.32 = 13.6
8b. Less optimistic
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The comparative financial statements prepared at December 31 for Pinnacle Plus showed the following summarized data:...
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data:...
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data: Current Previous Income Statement Sales revenue Cost of goods sold $280,000 150,000 $245,000 140,000 Gross profit Operating expenses Interest expense 130,000 73,300 4,700 105,000 66,400 4,600 Income before income taxes Income tax expense 52,000 15,600 34.000 5,000 Net income $ 36,400 $ 29,000 $ Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) 8,100 39,000 60,000 65,000 $ 10,000 33,000 55,000 58,000...
Pinnacle Plus declared and paid a cash dividend of $8,100 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:
Pinnacle Plus declared and paid a cash dividend of $8,100 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current YearPrevious YearIncome StatementSales Revenue$185,000$159,000Cost of Goods Sold82,00078,000Gross Profit103,00081,000Operating Expenses51,00045,000Interest Expense5,5005,500Income before Income Tax Expense46,50030,500Income Tax Expense (30%)13,9509,150Net Income$32,550$21,350Balance SheetCash$89,075$23,000Accounts Receivable, Net32,00027,000Inventory40,00053,000Property and Equipment, Net110,000120,000Total Assets$271,075$223,000Accounts Payable$57,000$33,500Income Tax Payable1,3751,250Note Payable (long-term)55,00055,000Total Liabilities113,37589,750Common Stock (par $10)99,00099,000Retained Earnings58,70034,250Total Liabilities and Stockholders’ Equity$271,075$223,000 Required:1. Compute the gross profit percentage in the current and previous years. Are the current year...
Pinnacle Plus declared and paid a cash dividend of $7,800 in the current year. Its comparative...
Pinnacle Plus declared and paid a cash dividend of $7,800 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $170,000 76,000 94,000 48,000 5,200 40,800 12,240 $ 28,560 $147,000 72,000 75,000 42,600 5, 200 27,200 8,160 $ 19,040 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable,...
Pinnacle Plus declared and paid a cash dividend of $9,100 in the current year. Its comparative...
Pinnacle Plus declared and paid a cash dividend of $9,100 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year Income Statement Sales Revenue $ 235,000 $ 199,000 Cost of Goods Sold 102,000 98,000 Gross Profit 133,000 101,000 Operating Expenses 61,000 53,000 Interest Expense 6,500 6,500 Income before Income Tax Expense 65,500 41,500 Income Tax Expense (30%) 19,650 12,450 Net Income $ 45,850 $ 29,050 Balance Sheet Cash $...
Please complete entire PA13-2 with ratios correctly. Use the data given in PA13-1 for pinnacle plus....
Please complete entire PA13-2 with ratios correctly. Use the
data given in PA13-1 for pinnacle plus.
est percentage? LO 13-4, 1 PA13-2 Analyzing Comparative Financial Statements Using Selected Ratios Use the data given in PA13-1 for Pinnacle Plus. Required: 1. Compute the gross profit percentage in the current and previous years. Round the percent- ages to one decimal place. Are the current year results better, or worse, than those for the previous year? 2. Compute the net profit margin for...
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...
Required: 1. Compute the gross profit percentage in the current and previous years. Are the current...
Required: 1. Compute the gross profit percentage in the current and previous years. Are the current year results better, or worse, than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current year results better, or worse, than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current year results better, or worse, than those for the previous year? 4....
6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2...
6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? Debt-to-Assets Current Year Previous Year 6-B. Current year debt-to-assets ratio? Larger Proportion Smaller Proportion Required 5 Required 7 > G E VUS years. Are the current year results better, or worse, than those for the previous year? 6. Compute the debt-to-assets ratios for the current and...
Help Save & Ex Eignment i Che Tiger Audio declared and paid a cash dividend of $7,325 in the current...
Help Save & Ex Eignment i Che Tiger Audio declared and paid a cash dividend of $7,325 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous $312,000 163,650 148,350 57,600 5,800 84,950 25,485 $ 59,465 $257,000 147,000 110,000 48,130 5,070 56,800 17,040 $ 39,760 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (308) Net Income Balance...
The comparative financial statements prepared at December 31. 2014, for Pinnacle Plus showed the following summarized...
The comparative financial statements prepared at December 31. 2014, for Pinnacle Plus showed the following summarized data: 2014I11 2013 Income Statement Sales Revenue* Cost of Goods Sold $125,000 $114,000 58,000 54,000 Gross Proft Operating Expenses Interest Expense 67,000 40,500 3,500 60,000 3,500 Income before Income Tax Expense Income Tax Expense (30%) 23,000 6,900 19,000 5,700 Net Income s16,10013,300 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net 47,742 14,350 32,000 32,500 85,000 39,500 33,000 95,000 Total Assets $197.242...
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data: Current Previous Income Statement Sales revenue Cost of goods sold $280,000 150,000 $245,000 140,000 Gross profit Operating expenses Interest expense 130,000 73,300 4,700 105,000 66,400 4,600 Income before income taxes Income tax expense 52,000 15,600 34.000 5,000 Net income $ 36,400 $ 29,000 $ Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) 8,100 39,000 60,000 65,000 $ 10,000 33,000 55,000 58,000...
Pinnacle Plus declared and paid a cash dividend of $7,800 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year $170,000 76,000 94,000 48,000 5,200 40,800 12,240 $ 28,560 $147,000 72,000 75,000 42,600 5, 200 27,200 8,160 $ 19,040 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable,...
Please complete entire PA13-2 with ratios correctly. Use the
data given in PA13-1 for pinnacle plus.
est percentage? LO 13-4, 1 PA13-2 Analyzing Comparative Financial Statements Using Selected Ratios Use the data given in PA13-1 for Pinnacle Plus. Required: 1. Compute the gross profit percentage in the current and previous years. Round the percent- ages to one decimal place. Are the current year results better, or worse, than those for the previous year? 2. Compute the net profit margin for...
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...
Required: 1. Compute the gross profit percentage in the current and previous years. Are the current year results better, or worse, than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current year results better, or worse, than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current year results better, or worse, than those for the previous year? 4....
6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? Debt-to-Assets Current Year Previous Year 6-B. Current year debt-to-assets ratio? Larger Proportion Smaller Proportion Required 5 Required 7 > G E VUS years. Are the current year results better, or worse, than those for the previous year? 6. Compute the debt-to-assets ratios for the current and...
Help Save & Ex Eignment i Che Tiger Audio declared and paid a cash dividend of $7,325 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous $312,000 163,650 148,350 57,600 5,800 84,950 25,485 $ 59,465 $257,000 147,000 110,000 48,130 5,070 56,800 17,040 $ 39,760 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (308) Net Income Balance...
The comparative financial statements prepared at December 31. 2014, for Pinnacle Plus showed the following summarized data: 2014I11 2013 Income Statement Sales Revenue* Cost of Goods Sold $125,000 $114,000 58,000 54,000 Gross Proft Operating Expenses Interest Expense 67,000 40,500 3,500 60,000 3,500 Income before Income Tax Expense Income Tax Expense (30%) 23,000 6,900 19,000 5,700 Net Income s16,10013,300 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net 47,742 14,350 32,000 32,500 85,000 39,500 33,000 95,000 Total Assets $197.242...
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