Byers Company presents the following condensed income statement for 2019 and condensed December 31, 2019, balance sheet: Income StatementSales (net) $267,000Less: Cost of goods sold$160,000 Operating expenses62,000 Interest expense11,000 Income taxes10,000 Total expenses (243,000)Net income $24,000 Balance Sheet Cash$10,000 Current liabilities$40,000Receivables (net)22,000 Bonds payable, 10%110,000Inventory56,000 Common stock, $10 par100,000Long-term investments30,000 Additional paid-in capital95,000Property and equipment (net)282,000 Retained earnings55,000Total Assets$400,000 Total Liabilities and Shareholders' Equity$400,000 Additional information:The company's common stock was outstanding the entire year.Dividends of $1.50 per share on the common stock were declared in 2019.On December 31, 2019, common stock is selling for $20 per share.On January 1, 2019, the accounts receivable (net) balance was $24,000, total assets amounted to $380,000, and total shareholders' equity was $241,000.Of the company's net sales, 78% are on credit.The company operates on a 365-day business year.On the basis of the preceding information, compute the following ratios for the Byers Company:(Round to two decimal places.)4. Net profit margin:________%5. Total asset turnover:_______ times6. Return on assets (Round tax rate to the nearest whole percent in your intermediate calculations.)________%7. Return on common equity________%8. Receivables turnover (in days): (Round your intermediate calculation to two decimal places.)______ days9. Interest coverage: (in times)_____ times Sub-parts to be answered 4-9

Answered: 4. Net profit margin: ________% 5.…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 16E

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Byers Company presents the following condensed income statement for 2019 and condensed December 31, 2019, balance sheet:

Income Statement
Sales (net)		$267,000
Less:
Cost of goods sold	$160,000
Operating expenses	62,000
Interest expense	11,000
Income taxes	10,000
Total expenses		(243,000)
Net income		$24,000

Balance Sheet

Cash	$10,000	Current liabilities	$40,000
Receivables (net)	22,000	Bonds payable, 10%	110,000
Inventory	56,000	Common stock, $10 par	100,000
Long-term investments	30,000	Additional paid-in capital	95,000
Property and equipment (net)	282,000	Retained earnings	55,000
Total Assets	$400,000	Total Liabilities and Shareholders' Equity	$400,000

Additional information:

The company's common stock was outstanding the entire year.
Dividends of $1.50 per share on the common stock were declared in 2019.
On December 31, 2019, common stock is selling for $20 per share.
On January 1, 2019, the accounts receivable (net) balance was $24,000, total assets amounted to $380,000, and total shareholders' equity was $241,000.
Of the company's net sales, 78% are on credit.
The company operates on a 365-day business year.

On the basis of the preceding information, compute the following ratios for the Byers Company:

(Round to two decimal places.)

4. Net profit margin:	________%
5. Total asset turnover:	_______ times
6. Return on assets (Round tax rate to the nearest whole percent in your intermediate calculations.)	________%
7. Return on common equity	________%
8. Receivables turnover (in days): (Round your intermediate calculation to two decimal places.)	______ days
9. Interest coverage: (in times)	_____ times

Sub-parts to be answered 4-9

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As we answer only 3 subparts at a time, we are going to answer first 3 subparts which is (4), (5), (6).

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