Homework Help is Here – Start Your Trial Now!
Business
Accounting
Calculate the following ratios for 2025 and 2026. (Round current ratio to 2 decimal places, e.g. 12.61, debts to assets and gross profit rate to 0 decimal places, e.g.12, and all other answers to 1 decimal place, e.g. 12.6%) Please show your work. 1. Current ratio 2. Debts to assets 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2024, were $35,180) 6. Return on common stockholder's equity (Total common stockholders' equity at November 1, 2024, was $25, 180. Dividends on preferred stock were $16,800 in 2025 and $18,000 in 2026)

Calculate the following ratios for 2025 and 2026. (Round current ratio to 2 decimal places, e.g. 12.61, debts to assets and gross profit rate to 0 decimal places, e.g.12, and all other answers to 1 decimal place, e.g. 12.6%) Please show your work. 1. Current ratio 2. Debts to assets 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2024, were $35,180) 6. Return on common stockholder's equity (Total common stockholders' equity at November 1, 2024, was $25, 180. Dividends on preferred stock were $16,800 in 2025 and $18,000 in 2026)

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 77E
See similar textbooks
icon
Related questions
Question

Calculate the following ratios for 2025 and 2026. (Round current ratio to 2 decimal places, e.g. 12.61, debts to assets and gross profit rate to 0 decimal places, e.g.12, and all other answers to 1 decimal place, e.g. 12.6%) Please show your work.

1. Current ratio

2. Debts to assets

3. Gross profit rate

4. Profit margin

5. Return on assets (Total assets at November 1, 2024, were $35,180)

6. Return on common stockholder's equity (Total common stockholders' equity at November 1, 2024, was $25, 180. Dividends on preferred stock were $16,800 in 2025 and $18,000 in 2026)

 

 

The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2026 for the years 2026 and 2025, and the income statements for the years ended October 31, 2025 and 2026, are presented below. Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation Total assets COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Note payable-long-term portion Preferred stock, no par, $6 cumulative-3,000 and 2,800 shares issued, respectively Common stock, $1 par-25,930 shares issued Additional paid in capital-treasury stock Retained earnings Less treasury stock Total liabilities and stockholders' equity 2026 2025 $11,550 2,710 7,450 6,050 102,000 75,500 (25,200) (9,100) $122,821 $29,074 3,250 7,897 5,800 $1,150 9,251 27,000 7,250 4,000 6,000 15,000 25,930 250 26,802 $122,821 $94,160 $2,450 7,200 27,000 1,280 0 0 0 14,000 25,930 0 16,800 (500) $94,160
Transcribed Image Text:The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2026 for the years 2026 and 2025, and the income statements for the years ended October 31, 2025 and 2026, are presented below. Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation Total assets COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Note payable-long-term portion Preferred stock, no par, $6 cumulative-3,000 and 2,800 shares issued, respectively Common stock, $1 par-25,930 shares issued Additional paid in capital-treasury stock Retained earnings Less treasury stock Total liabilities and stockholders' equity 2026 2025 $11,550 2,710 7,450 6,050 102,000 75,500 (25,200) (9,100) $122,821 $29,074 3,250 7,897 5,800 $1,150 9,251 27,000 7,250 4,000 6,000 15,000 25,930 250 26,802 $122,821 $94,160 $2,450 7,200 27,000 1,280 0 0 0 14,000 25,930 0 16,800 (500) $94,160
COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2026 $485,625 $462.500 222,694 208,125 262,931 254,375 Sales Cast of goods sold Gross proft Operating expenses Salaries and wages expense Depreciation expense Other operating expenses Total operating expenses Income from operations Other expenses Interest expense Loss on disposal of plant assets Total other expenses Income before income tax Income tax expense Net income Additional information: 147,979 146,350 9,100 42,925 198,375 17,600 48,186 213,765 49.166 413 2,500 2,913 46,253 9,251 2025 $37,002 56,000 0 0 56,000 14,000 $42,000 Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of $2,500 on May 1 and November 1 of each year, plus interest of 536 on the outstanding balance.
Transcribed Image Text:COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2026 $485,625 $462.500 222,694 208,125 262,931 254,375 Sales Cast of goods sold Gross proft Operating expenses Salaries and wages expense Depreciation expense Other operating expenses Total operating expenses Income from operations Other expenses Interest expense Loss on disposal of plant assets Total other expenses Income before income tax Income tax expense Net income Additional information: 147,979 146,350 9,100 42,925 198,375 17,600 48,186 213,765 49.166 413 2,500 2,913 46,253 9,251 2025 $37,002 56,000 0 0 56,000 14,000 $42,000 Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of $2,500 on May 1 and November 1 of each year, plus interest of 536 on the outstanding balance.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 8 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS