a) Compute and interpret the following ratios of "MAYE HOT" Company Limited for each of the years. fuale last i. Profit Margin ii. Return on Equity iii. Return on Capital Employed
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- You are a consultant for Glory Ltd, a quoted company operating in the manufacturing sector. Following are aStatement of Profit or Loss and Statement of Financial Position with comparatives for the year ended 31stDecember 2018.Statement of Profit or Loss for the year ended 31 st December, 201820182017GHSGHSSales revenue3,095,5761,909,051Cost of sales2,402,6091,441,950Gross profit692,967467,101Interest receivable7442,782Administration expenses333,466222,872Operating profit360,245247,011Interest18,11521,909Profit before taxation342,130225,102Income tax expense74,20031,272Profit for the year267,930193,8303Statement of Financial Position as at 31 December 2018Assets20182017GHSGHSNon-current assetsProperty, plant and equipment 802,180656,071Current assetsInventory64,42286,550Trade receivables905,679807,712Prepayment and accrued income 97,02245,729Cash at bank and in hand 1,32768,3631,068,4501,008,354Total assets1,870,6301,664,425Equity and liabilitiesEquityOrdinary shares258,178258,178Income…The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000The following information is taken from the accounting recordes of LouLou's Cupcakes Limited for the current year.Use the information to calculate the net income for the year. Administration expenses $240,000 Cost of goods sold $1,140,000 Selling and distribution expenses $440,000 Interest expense $100,000 Net sales $2,400,000
- Use this information for Train Corporation to answer the question that follow.The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $ 47,200 $30,720 Direct operating expenses 27,200 20,040 Sales 108,000 78,000 Interest expense $ 2,040 General overhead 18,160 Income tax 4,700 The net income for Train Corporation isFrom the following information prepare the Manufacturing, Profit or Loss and other comprehensive income statement accounts for the year ending 31 December 2019 and the statement of financial position as at 31 December 2019 for the firm of PigMen Enterprise.Purchase of raw materials 64,500.00 - Fuel and light 5,250.00 - Administration salaries 4,250.00 - Factory wages 14,750.00 - Carriage outwards 1,000.00 - Rent and rates 5,250.00 - Sales - 120,500.00 Returns inward 1,750.00 - General office expenses 2,250.00 - Repairs to plant and machinery 2,250.00 - Stock at 1 January 2019 - - Raw materials 5,250.00 - Work in progress 3,500.00 - Finished goods 5,750.00 - Sundry creditors - 9,250.00 Capital account - 114,250.00 Freehold premises 102,500.00 - Plant and machinery 20,000.00 - Debtors 5,000.00 - Provision for depreciation on plant and- - Machinery at 1 January 2019- 2,000.00 Cash in hand 2,750.00 - 246,000.00 246,000.00 Make provision for the following:(a) Stock in hand at 31 December…Below are amounts found in the income statements of three companies. Company SalesRevenue Cost ofGoods Sold OperatingExpenses Non-operatingExpenses Income TaxExpense Henry $ 48,000 $ 19,200 $ 5,800 $ 2,800 $ 2,800 Grace 51,000 38,250 14,000 7,800 0 James 56,000 37,520 3,800 0 3,800 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. Gross Profit Operating Income Income Before Income taxes Net Income / Loss Henry Grace James
- You are a consultant for Glory Ltd, a quoted company operating in the manufacturing sector. Following are a Statement of Profit or Loss and Statement of Financial Position with comparatives for the year ended 31st December 2018. 2018 GHS 2017 GHS Sales revenue 3,095,576 1,909,051 Cost of sales 2,402,609 1,441,950 Gross profit 692,967 467,101 Interest receivable 744 2,782 Administration expenses 333,466 222,872 Operating profit 360,245 247,011 Interest 18,115 21,909 Profit before taxation 342,130 225,102 Income tax expense 74,200 31,272 Profit for the year 267,930 193,830 Statement of Profit or Loss for the year ended 31st December, 2018 Statement of Financial Position as at 31 December 2018 Assets 2018 GHS 2017 GHS Non-current…You are a consultant for Glory Ltd, a quoted company operating in the manufacturing sector. Following are aStatement of Profit or Loss and Statement of Financial Position with comparatives for the year ended 31st December 2018. Statement of Profit or Loss for the year ended 31st December, 2018 2018 GHS 2017 GHS Sales revenue 3,095,576 1,909,051 Cost of sales 2,402,609 1,441,950 Gross profit 692,967 467,101 Interest receivable 744 2,782 Administration expenses 333,466 222,872 Operating profit 360,245 247,011 Interest 18,115 21,909 Profit before taxation 342,130 225,102 Income tax expense 74,200 31,272 Profit for the year 267,930 193,830Grotto Ltd has already sent $19,600 to the ATO in respect to PAYG, and this figure shown as a debit in the Income Tax Expense account. The Profit and Loss account is then prepared and the Net Profit (before tax) is found to be $75,000. The current company tax rate is 30%. Required: Prepare general journal entries for the following Correct the Income Tax Expense account Close the Income Tax Expense account Transfer Net Profit (after tax) to Retained Earnings
- The summarized revenues and expenses information for Canadian Travel Inc. for the year 2018 states:1cost of goods sold CAD180,000, sales revenue CAD400,000, other (non-operating) revenues and gainsCAD30,000, sales general and administration expenses of CAD100,000. Net interest income is (+)CAD10,000 and the corporate income tax rate is 26,50%: Prepare the Income (i.e. Pro t & Loss) Statement of Holiday Inc., showing Gross Pro t, OperatingPro t, Other gains/(losses), Earnings before Interest and Tax (EBIT), Pro t before Tax and NetIncome i.e. Net Pro t. Point out and explain which of all these revenue and expense items may imply/include non-cashtransactions or accounting records. If the ending balance in Retained Earnings on Canadian Travel Inc.s 31. Dec 2017 balance sheetwas $1,000,000 and a cash dividend of $10,000 was paid in 2018, using the above information showthe balance sheet entries of Retained Earnings as of 31. Dec 2018.In addition to the above, assume that Canadian…The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. FORKLIFT MATERIAL HANDLINGIncome statement Comparison Current Year Prior Year (Amounts in thousands) Sales $33,700 $24,700 Cost of goods sold 21,905 16,796 Gross profit $11,795 $7,904 Expenses: Wages $8,750 $6,187 Utilities 650 250 Repairs 170 300 Selling 505 100 Total Expenses $10,075 $6,837 Operating income ? ? Operating income % ? ? Total assets (investment base) $4,400 $1,600 Return on investment ? ? Residual income (8% cost of capital) ? ? A. Determine the operating income (loss) (dollars) for each year. If required round final answers to two decimal places. Current Year Prior Year Operating income (loss) $fill in the blank 1 $fill in the blank 2 B. Determine the operating income (loss) (percentage) for each year. If required round final answers to two…Adom Ltd, is a private company in Ghana operating in the manufacturing sector. Below is a Statement of financial position and a summarized statement of income with comparatives for the year ended 31st December 2019. statement of financial position as at 31st December 2019: Non-current assets 2019 GH¢ 2018 GH¢ PPE 200,000 250,000 R &D 40,000 - Total Non-current assets 240,000 250,000 Current assets Available for sale 12,000 20,000 Inventory 70,000 45,000 Trade receivables 30,000 23,000 Cash & cash equivalents 18,000 17,000 Total current assets 130,000 105,000 Total assets 370,000 355,000 Equity Equity share capital (GH¢1 per share) 150,000 100,000 10% preference share capital 50,000 50,000 Retained earnings 60,000 55,000 Total equity 260,000 205,000 Non-current liabilities 10% loan notes 50,000 90,000 12% debentures…