At the end of a fiscal year 2020, a commercial construction company reported a total revenue of $4,000,000 and a gross profit of $647,000. Also, the net profits before and after Tax were reported as (-$25,000) and (-$64,000), respectively. The company’s general overhead ratio has been recorded around 16.8%. Comment on the financial health of this company and, if you see the area of improvements, provide your recommendation for the company to get more profitable.

At the end of a fiscal year 2020, a commercial construction company reported a total revenue of $4,000,000 and a gross profit of $647,000. Also, the net profits before and after Tax were reported as (-$25,000) and (-$64,000), respectively. The company’s general overhead ratio has been recorded around 16.8%. Comment on the financial health of this company and, if you see the area of improvements, provide your recommendation for the company to get more profitable.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
For Year 2020, a local franchise commercial landscaping company, had sales of $42,500, cost of goods sold of $27,900, depreciation expense of $1,900, interest expense of $1,450, and dividends paid of $900. At the beginning of the year, net fixed assets were $15,000, current assets were $8,900, and current liabilities were $5,600. At the end of the year, net fixed assets were $17,600, current assets were $8,900, and current liabilities were $7,800. The tax rate was 34 percent. What is the cash flow from assets for 2020? The formula I have for Cash Flow needs different information than what has been given and I cannot figure out how to adjust currently.
In its first year of operations, 2020, Marigold Corp. invoiced $185,000 in service revenue. Of that amount, $20,000 was still owing from customers at the end of year. In 2020, Marigold incurred various operating expenses totalling $91,000, of which $82,000 was paid in cash. Salaries and wages paid to employees totalled $75,000 and $2,400 was still owing at the end of the year. In addition, Marigold prepaid $5,500 for insurance coverage that covered the last half of 2020 and the first half of 2021. Marigold estimates it will owe $8,600 in income tax when it files its corporate income tax return after its 2020 year end. Calculate the net income for 2020 under the accrual basis of accounting.
In its first year of operations, 2020, Marigold Corp. invoiced $185,000 in service revenue. Of that amount, $20,000 was still owing from customers at the end of year. In 2020, Marigold incurred various operating expenses totalling $91,000, of which $82,000 was paid in cash. Salaries and wages paid to employees totalled $75,000 and $2,400 was still owing at the end of the year. In addition, Marigold prepaid $5,500 for insurance coverage that covered the last half of 2020 and the first half of 2021. Marigold estimates it will owe $8,600 in income tax when it files its corporate income tax return after its 2020 year end. a. Calculate the net income for 2020 under the accrual basis of accounting. b. Calculate the net income for 2020 under the cash basis of accounting.
Quantum and Time company is engaged in merchandising business. During the year 2020, the company generated a net income of 45 million. In the process it incurred depreciation of 3 million & amortization of 2 million, while accounts receivables increased by 2 million, inventory decreased by 3 million and trade payables increased by 2 million. It reported total assets, total current liabilities, and total non-current liabilities of 200million, 50 million and 75 million respectively as on the balance sheet date. Calculate the CFROI of the company based on the given information.
During 2020, Best Corporation had cash and credit sales of $36,420 and $18,560, respectively. The company also collected accounts receivable of $10,350 and incurred operating expenses of $39,600, 80% of which were paid during the year. In addition, Best prepaid $4,500 for an 18 month advertising campaign that began September 30. Best Company's accrual basis net income (loss) for the year ending December 31, 2020 was: Group of answer choices A. $8,535 B. $240 C. $14,630 D. $18,800
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Martinez Industries had the following operating results for 2021: Sales = $33,308; Cost of goods sold = $23,722; Depreciation expense = $5,897; Interest expense = $2,660; Dividends paid = $1,906. At the beginning of the year, net fixed assets were $19,840, current assets were $6,984, and current liabilities were $3,932. At the end of the year, net fixed assets were $24,412, current assets were $8,624, and current liabilities were $4,583. The tax rate for 2021 was 22 percent. a. What is net income for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the operating cash flow for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is the cash flow from assets for 2021? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. If no new debt…
In its income statement for the year ended December 31, 2022, Larkspur, Inc. reported the following condensed data. Operating expenses - $717,000 Cost of goods sold - 1,253,000 Interest expense - 68,000 Income tax expense - 42,000 Interest revenue - $31,000 Loss on disposal of plant assets - 14,000 Net sales - 2,197,000 Other comprehensive income (net of $1,200 tax) - 8,000 Prepare a comprehensive income statement:
At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,577,000 in revenues, $3,380,000 in cost of goods sold, $454,000 in operating expenses which included depreciation expense of $142,000, and a tax liability equal to 34 percent income. What is the net income of the firm for the year? Complete the income statement for Sandifer Manufacturing Co (round to the nearest dollar) show breakdown of an income statement
In its income statement for the year ended December 31, 2022, Crane Company reported the following condensed data. Salaries and wages expenses $381,300 Loss on disposal of plant assets $ 68,470 Cost of goods sold 809,340 Sales revenue 1,812,200 Interest expense 58,220 Income tax expense 20,500 Interest revenue 53,300 Sales discounts 131,200 Depreciation expense 254,200 Utilities expense 90,200 Prepare a multiple-step income statement. (List other revenues before other expenses.)