5.1Calculate the following ratios for 2021 only. Express the answers to two decimal places.Inventory turnover5.1.15.1.2Creditors payment period5.1.3Return on equity5.1.4Debt to assets5.1.5 Price/Earnings ratio5.1.6Acid test ratio5.1.7 Dividend yield5.2Comment briefly but meaningfully on the following ratios (comparative figures are provided inbrackets):Gross margin (2021: 51.21%; 2020: 60.45%)5.2.15.2.2Current ratio (2021: 1.20:1; 2020: 1.07:1)5.2.3Return on assets (2021: 25.56%; 2020: 30.42%) ROLEX LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021RSales4 140 000Cost of sales(2 020 000)Gross profit2 120 000Selling and administrative expenses(840 000)Operating profit1 280 000Interest expense(80 000)Profit before tax1 200 000Company tax(320 000)Profit after tax880 000STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:ASSETS2021 (R)2020 (R)Non-current assets3740 0002 940 000Property, plant and equipment3 440 0002940 000Investments300 000Current assets1 080 000900 000Inventories480 000500 000Accounts receivable510 000320 000Cash and cash equivalents90 00080 000Total assets4 820 0003 840 000EQUITY AND LIABILITIESEquity3 120 0002 600 000Ordinary share capital2 000 0002 000 000Retained eamings1 120 000600 000Non-current liabilities800 000400 000Long-term loan800 000400 000Current liabities900 000840 000Accounts payable480 000560 000Company tax payable160 00080 000Dividends payable260 000200 000Total equity and labiliies4 820 0003 840 000

Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Calculate the following ratios for 2021 only. Express the answers to two decimal places. Inventory turnover 5.1 5.1.1 5.1.2 Creditors payment period 5.1.3 Return on equity 5.1.4 Debt to assets 5.1.5 Price/Earnings ratio 5.1.6 Acid test ratio 5.1.7 Dividend yield Comment briefly but meaningfully on the following ratios (comparative figures are provided in brackets): Gross margin (2021: 51.21%; 2020: 60.45%) 5.2 5.2.1 5.2.2 Current ratio (2021: 1.20:1; 2020: 1.07:1) 5.2.3 Return on assets (2021: 25.56%; 2020: 30.42%)

Calculate the following ratios for 2021 only. Express the answers to two decimal places. Inventory turnover 5.1 5.1.1 5.1.2 Creditors payment period 5.1.3 Return on equity 5.1.4 Debt to assets 5.1.5 Price/Earnings ratio 5.1.6 Acid test ratio 5.1.7 Dividend yield Comment briefly but meaningfully on the following ratios (comparative figures are provided in brackets): Gross margin (2021: 51.21%; 2020: 60.45%) 5.2 5.2.1 5.2.2 Current ratio (2021: 1.20:1; 2020: 1.07:1) 5.2.3 Return on assets (2021: 25.56%; 2020: 30.42%)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

See similar textbooks

Similar questions

Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
Income Statements for the Year Ended 31st Dec 2020 KM Ltd ROW Ltd £'000 £'000 Sales revenue 8,320 11,250 Cost of sales (6,020) (9,030) Gross profit 2,300 2,220 Operating expenses (1,048) (1,535) Operating profit 1,252 685 Finance charges (20) (70) Profit before tax 1,232 615 Taxation (62) (30) Profit for the year 1,170 585 SOFP (Balance Sheet) as at 31st Dec 2020 KM Ltd ROW Ltd £'000 £'000 £'000 £'000 Non-current assets 502 198 Current assets Inventory 1,290 2,437 Trade receivables     730 1,990 2,020 4,427 Total assets 2,522 4,625 Equity Share capital 1,350      800 Reserves 580 1,145        1,930     1,945…
Income Statements for the Year Ended 31st Dec 2020 KM Ltd ROW Ltd £'000 £'000 Sales revenue 8,320 11,250 Cost of sales (6,020) (9,030) Gross profit 2,300 2,220 Operating expenses (1,048) (1,535) Operating profit 1,252 685 Finance charges (20) (70) Profit before tax 1,232 615 Taxation (62) (30) Profit for the year 1,170 585 SOFP (Balance Sheet) as at 31st Dec 2020 KM Ltd ROW Ltd £'000 £'000 £'000 £'000 Non-current assets 502 198 Current assets Inventory 1,290 2,437 Trade receivables     730 1,990 2,020 4,427 Total assets 2,522 4,625 Equity Share capital 1,350      800 Reserves 580 1,145        1,930     1,945…
Income Statements for the Year Ended 31st Dec 2020 KM Ltd ROW Ltd £'000 £'000 Sales revenue 8,320 11,250 Cost of sales (6,020) (9,030) Gross profit 2,300 2,220 Operating expenses (1,048) (1,535) Operating profit 1,252 685 Finance charges (20) (70) Profit before tax 1,232 615 Taxation (62) (30) Profit for the year 1,170 585 SOFP (Balance Sheet) as at 31st Dec 2020 KM Ltd ROW Ltd £'000 £'000 £'000 £'000 Non-current assets 502 198 Current assets Inventory 1,290 2,437 Trade receivables     730 1,990 2,020 4,427 Total assets 2,522 4,625 Equity Share capital 1,350      800 Reserves 580 1,145        1,930     1,945…
PEPSICO LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:2021 (R) 2020 (R)Sales 3 312 000 2 800 000Cost of sales (1 616 000) (1 560 000)Gross profit 1 696 000 1 240 000Selling and administrative expenses (672 000) (568 000)Operating profit 1 024 000 672 000Interest expense (64 000) (32 000)Profit before tax 960 000 640 000Tax (256 000) (172 000)Profit after tax 704 000 468 000LIST OF BALANCES FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:2021 (R) 2020 (R)Land and buildings 1 760 000 1 504 000Plant and machinery 992 000 848 000Investments 240 000 0Inventories 384 000 400 000Accounts receivable 408 000 256 000Cash and cash equivalents 72 000 64 000Ordinary share capital 1 600 000 1 600 000Retained earnings 896 000 480 000Long-term loan 640 000 320 000Accounts payable 384 000 448 000Income tax payable 128 000 64 000Dividends payable 208 000 160 000Additional information¦ Selling and administrative expenses include depreciation as follows:Depreciation on…
PEPSICO LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:2021 (R) 2020 (R)Sales 3 312 000 2 800 000Cost of sales (1 616 000) (1 560 000)Gross profit 1 696 000 1 240 000Selling and administrative expenses (672 000) (568 000)Operating profit 1 024 000 672 000Interest expense (64 000) (32 000)Profit before tax 960 000 640 000Tax (256 000) (172 000)Profit after tax 704 000 468 000LIST OF BALANCES FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:2021 (R) 2020 (R)Land and buildings 1 760 000 1 504 000Plant and machinery 992 000 848 000Investments 240 000 0Inventories 384 000 400 000Accounts receivable 408 000 256 000Cash and cash equivalents 72 000 64 000Ordinary share capital 1 600 000 1 600 000Retained earnings 896 000 480 000Long-term loan 640 000 320 000Accounts payable 384 000 448 000Income tax payable 128 000 64 000Dividends payable 208 000 160 000Additional information¦ Selling and administrative expenses include depreciation as follows:Depreciation on…
PEPSICO LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:2021 (R) 2020 (R)Sales 3 312 000 2 800 000Cost of sales (1 616 000) (1 560 000)Gross profit 1 696 000 1 240 000Selling and administrative expenses (672 000) (568 000)Operating profit 1 024 000 672 000Interest expense (64 000) (32 000)Profit before tax 960 000 640 000Tax (256 000) (172 000)Profit after tax 704 000 468 000LIST OF BALANCES FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:2021 (R) 2020 (R)Land and buildings 1 760 000 1 504 000Plant and machinery 992 000 848 000Investments 240 000 0Inventories 384 000 400 000Accounts receivable 408 000 256 000Cash and cash equivalents 72 000 64 000Ordinary share capital 1 600 000 1 600 000Retained earnings 896 000 480 000Long-term loan 640 000 320 000Accounts payable 384 000 448 000Income tax payable 128 000 64 000Dividends payable 208 000 160 000Additional information¦ Selling and administrative expenses include depreciation as follows:Depreciation on…
PEPSICO LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:2021 (R) 2020 (R)Sales 3 312 000 2 800 000Cost of sales (1 616 000) (1 560 000)Gross profit 1 696 000 1 240 000Selling and administrative expenses (672 000) (568 000)Operating profit 1 024 000 672 000Interest expense (64 000) (32 000)Profit before tax 960 000 640 000Tax (256 000) (172 000)Profit after tax 704 000 468 000LIST OF BALANCES FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:2021 (R) 2020 (R)Land and buildings 1 760 000 1 504 000Plant and machinery 992 000 848 000Investments 240 000 0Inventories 384 000 400 000Accounts receivable 408 000 256 000Cash and cash equivalents 72 000 64 000Ordinary share capital 1 600 000 1 600 000Retained earnings 896 000 480 000Long-term loan 640 000 320 000Accounts payable 384 000 448 000Income tax payable 128 000 64 000Dividends payable 208 000 160 000Additional information¦ Selling and administrative expenses include depreciation as follows:Depreciation on…
INCOME STATEMENT Year ended June 30 2022 2021 $'000 $'000Revenue 22450 18675Cost of sales 8475 8055Gross Profit 13975 10620Distribution costs 4245 3120Administrative expenses 1276 2134Selling expenses…
High-Tex Limited Income Statement for the year ending 30 June 2019 ($’000) 2018 ($’000) Revenue - computer 9,600 8,300 Revenue - software 1,450 1,500 Total operating revenue 11,050 9,800 Cost of sales 5,400 5,195 Gross profit 5,650 4,605 Administration expense 1,250 950 Wages expense 600 500 Depreciation expense 225 225 Other expenses 480 435 Earnings before interest and tax 3,095 2,495 Interest expense 455 525 Profit before tax 2,640 1,970 Income tax expense 792 591 Profit for the period from continuing operations 1,848 1,379 High-Tex Limited Balance Sheet as at 30 June 2,019 ($’000) 2,018 ($’000) Current assets Cash 1,450 2155 Accounts receivable 1455 1,045 Inventories 755 980 Total current assets 3,660 4,180 Non-current assets Property, plant and equipment 6,780 7,150 Intangible assets 550 451 Total non-current assets 7,330 7,601 Total assets 10,990 11,781 Current liabilities Accounts payable 735…