The following income statements were drawn from the annual
reports of the Atlanta Company and the Boston Company:
*All figures are reported in thousands of dollars.
Required
*All figures are reported in thousands of dollars.
a-1. Compute the gross margin percentages and
return-on-sales ratios of Atlanta and Boston. (Round your
answers to the nearest whole number.)
a-2. One of the companies is a high-end retailer that
operates in exclusive shopping malls. The other operates discount
stores located in low-cost, standalone buildings. Ascertain which
of the company is a high-end retailer based on ratios
computed.
b. If Atlanta and Boston have equity of $17,200
and $19,400, respectively, which company is in the more profitable
business?
Homework Answers
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The following income statements were drawn from the annual
reports of the Atlanta Company and the...
The following income statements were drawn from the annual reports of the Atlanta Company and the...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta $ 36,100 16.670 19.30 Bonton. $ 88,600 64,520) Net sales Cost of goods sold Gross margin Less Operating exp. Selling and admin. exp. Net income (12,180) 7,250 115,866) 8,214 $ $ "All figures are reported in thousands of dollars Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston (Round your answers to the nearest whole number.)...
The following income statements were drawn from the annual reports of the Atlanta Company and the...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company Net Bales Coat of goods sold Gross margin Less: Operating exp. Selling and admin. exp. Net income Atlanta $ 210,000 (126, 000) 84,000 Boston $ 230,000 (179,400) 50, 600 (67,200) (32, 200) $ 16,800 $ 18,400 "All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston a-2. One of the...
The following income statements were drawn from the annual reports of the Atlanta Company and the...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company anta Net sales Cost of goods sold Gross margin Lesss Operating exp 34,600 89,800 16,410)62,380) 27,420 18,190 Selling and admin.exp Net incone 20,880 s 6,230 6,540 All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) a-2. Ascertain which of the company...
The following information is available for the Memphis and Billings companies: $ Sales Cost of goods...
The following information is available for the Memphis and Billings companies: $ Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis 946,400 654,200 244,600 1,140,000 340,000 Billings $1,147,200 732,200 301,000 1,150,000 380,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates...
The following information is available for the Memphis and Billings companies: Required a. Prepare a common...
The following information is available for the Memphis and
Billings companies:
Required
a. Prepare a common size income statement for each
company.
b. Compute the return on assets and return on
equity for each company.
c. Which company is more profitable from the
stockholders’ perspective?
d. One company is a high-end retailer, and the
other operates a discount store. Which is the discounter?
Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,240,960 800, 480 338, 240...
The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the...
The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $ 85,000 330,000 240,000 245,000 1,224,000 300,000 2,100,000 Beach Sweets $ 35,000 330,000 178,000 245,000 1, 228, 200 300,000 2,100,000 Required a-1. Compute the gross margin percentage for each company. a-2. Identify the company that appears...
The following information was drawn from the balance sheets of two companies: Company Assets = Liabilities...
The following information was drawn from the balance sheets of
two companies:
Company
Assets
=
Liabilities
+
Equity
East
207,000
78,000
129,000
West
606,000
158,000
448,000
Required
a. Compute the debt-to-assets ratio to measure the
level of financial risk of both companies.
b. Compare the two ratios computed in requirement
a to identify which company has the higher level of financial
risk.
East 207,000 606,000 78,000 158,000 129,000 448,000 West Required a. Compute the debt-to-assets ratio to measure the level...
The following information is available for the Memphis and Billings companies: Sales Cost of goods sold...
The following information is available for the Memphis and Billings companies: Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,500,000 1,050,000 350,000 1,800,000 720,000 Billings $1,500,000 1,125,000 250,000 1,800,000 720,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates a...
The following income statements were drawn from the annual reports of Toner Sales Company: 2018* $...
The following income statements were drawn from the annual reports of Toner Sales Company: 2018* $ 426,600 (281,556) 145, 044 2019* $ 521,600 (292,096) 229,504 Net sales Cost of goods sold Gross margin Less: Operating expense Selling and administrative expenses Net Income (68,256) 76,788 (83,456) $ 146,048 $ *All dollar amounts are reported in thousands. The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising....
k -Chapter 36 Saved Exercise 3-18 Using common size statements and ratlos to make comparisons LO...
k -Chapter 36 Saved Exercise 3-18 Using common size statements and ratlos to make comparisons LO 3-5 At the end of 2018 the following information is available for Billings and Phoneix companies Billings Phoneix 53,000,e00 $3,00e Cost of goods sold 1,80,e00 2,100 780 3,758,880 3,758 Stockholders' equity 1,8e0,8e0 1,200 Sales Operating expenses Total assets 960,800 Required a. Prepare common size income statements for each company b. One company is a high-end retailer. and the other operates a discount store. Which...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta $ 36,100 16.670 19.30 Bonton. $ 88,600 64,520) Net sales Cost of goods sold Gross margin Less Operating exp. Selling and admin. exp. Net income (12,180) 7,250 115,866) 8,214 $ $ "All figures are reported in thousands of dollars Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston (Round your answers to the nearest whole number.)...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company Net Bales Coat of goods sold Gross margin Less: Operating exp. Selling and admin. exp. Net income Atlanta $ 210,000 (126, 000) 84,000 Boston $ 230,000 (179,400) 50, 600 (67,200) (32, 200) $ 16,800 $ 18,400 "All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston a-2. One of the...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company anta Net sales Cost of goods sold Gross margin Lesss Operating exp 34,600 89,800 16,410)62,380) 27,420 18,190 Selling and admin.exp Net incone 20,880 s 6,230 6,540 All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) a-2. Ascertain which of the company...
The following information is available for the Memphis and Billings companies: $ Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis 946,400 654,200 244,600 1,140,000 340,000 Billings $1,147,200 732,200 301,000 1,150,000 380,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates...
The following information is available for the Memphis and
Billings companies:
Required
a. Prepare a common size income statement for each
company.
b. Compute the return on assets and return on
equity for each company.
c. Which company is more profitable from the
stockholders’ perspective?
d. One company is a high-end retailer, and the
other operates a discount store. Which is the discounter?
Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,240,960 800, 480 338, 240...
The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $ 85,000 330,000 240,000 245,000 1,224,000 300,000 2,100,000 Beach Sweets $ 35,000 330,000 178,000 245,000 1, 228, 200 300,000 2,100,000 Required a-1. Compute the gross margin percentage for each company. a-2. Identify the company that appears...
The following information was drawn from the balance sheets of
two companies:
Company
Assets
=
Liabilities
+
Equity
East
207,000
78,000
129,000
West
606,000
158,000
448,000
Required
a. Compute the debt-to-assets ratio to measure the
level of financial risk of both companies.
b. Compare the two ratios computed in requirement
a to identify which company has the higher level of financial
risk.
East 207,000 606,000 78,000 158,000 129,000 448,000 West Required a. Compute the debt-to-assets ratio to measure the level...
The following information is available for the Memphis and Billings companies: Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,500,000 1,050,000 350,000 1,800,000 720,000 Billings $1,500,000 1,125,000 250,000 1,800,000 720,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates a...
The following income statements were drawn from the annual reports of Toner Sales Company: 2018* $ 426,600 (281,556) 145, 044 2019* $ 521,600 (292,096) 229,504 Net sales Cost of goods sold Gross margin Less: Operating expense Selling and administrative expenses Net Income (68,256) 76,788 (83,456) $ 146,048 $ *All dollar amounts are reported in thousands. The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising....
k -Chapter 36 Saved Exercise 3-18 Using common size statements and ratlos to make comparisons LO 3-5 At the end of 2018 the following information is available for Billings and Phoneix companies Billings Phoneix 53,000,e00 $3,00e Cost of goods sold 1,80,e00 2,100 780 3,758,880 3,758 Stockholders' equity 1,8e0,8e0 1,200 Sales Operating expenses Total assets 960,800 Required a. Prepare common size income statements for each company b. One company is a high-end retailer. and the other operates a discount store. Which...
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