Condensed financial data are presented below for the Phoenix Corporation: 20X2 20X1 Accounts receivable $ 267,500 $ 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,000 Current liabilities 252,500 200,000 Long-term liabilities 77,500 75,000 Sales 1,640,000 Cost of goods sold 982,500 Interest expense 10,000 Income tax expense 77,500 Net income 127,500 Cash flow from operations 71,000 Cash flow from investing activities (6,000 ) Cash flow from financing activities (62,500 ) Tax rate 30 % The return on assets ratio for 20X2 is (rounded): 16.3% 16.9% 17.7% 18.2
Condensed financial data are presented below for the Phoenix Corporation: 20X2 20X1 Accounts receivable $ 267,500 $ 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,000 Current liabilities 252,500 200,000 Long-term liabilities 77,500 75,000 Sales 1,640,000 Cost of goods sold 982,500 Interest expense 10,000 Income tax expense 77,500 Net income 127,500 Cash flow from operations 71,000 Cash flow from investing activities (6,000 ) Cash flow from financing activities (62,500 ) Tax rate 30 % The return on assets ratio for 20X2 is (rounded): 16.3% 16.9% 17.7% 18.2
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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Condensed financial data are presented below for the Phoenix Corporation:
| 20X2 | 20X1 | ||||||
| $ | 267,500 | $ | 230,000 | ||||
| Inventory | 312,500 | 257,500 | |||||
| Total current assets | 670,000 | 565,000 | |||||
| Intangible assets | 50,000 | 60,000 | |||||
| Total assets | 825,000 | 695,000 | |||||
| Current liabilities | 252,500 | 200,000 | |||||
| Long-term liabilities | 77,500 | 75,000 | |||||
| Sales | 1,640,000 | ||||||
| Cost of goods sold | 982,500 | ||||||
| Interest expense | 10,000 | ||||||
| Income tax expense | 77,500 | ||||||
| Net income | 127,500 | ||||||
| Cash flow from operations | 71,000 | ||||||
| Cash flow from investing activities | (6,000 | ) | |||||
| Cash flow from financing activities | (62,500 | ) | |||||
| Tax rate | 30 | % | |||||
The return on assets ratio for 20X2 is (rounded):
-
16.3%
-
16.9%
-
17.7%
-
18.2
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