E5.4 (LO 3) The 2020 and 2019 financial statements of Ken’s Sportswear follow: Balance Sheet 2020 2019 Assets
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E5.4 (LO 3) The 2020 and 2019 financial statements of Ken’s Sportswear follow:
| Balance Sheet | 2020 | 2019 |
| Assets | ||
| Cash | $9,000 | $7,000 |
| 12,000 | 9,000 | |
| Inventory | 18,000 | 15,000 |
| Property, plant, and equipment | 60,000 | 50,000 |
| Total assets | $99,000 | $81,000 |
| Liabilities and Shareholders’ Equity | ||
| Accounts payable | $16,500 | $12,000 |
| Notes payable | 46,000 | 40,000 |
| Common stock | 25,000 | 25,000 |
| 11,500 | 4,000 | |
| Total liabilities and equity | $99,000 | $81,000 |
| 2020 | 2019 | |
| Income Statement | ||
| Sales (all on credit) | $72,000 | |
| Less: Cost of goods sold | 30,000 | |
| Gross profit | $42,000 | |
| Operating expenses | 12,000 | |
| Net income from operations | $30,000 | |
| Interest expense | 5,000 | |
| Net income before taxes | $25,000 | |
| Income tax expense | 8,500 | |
| Net income | $16,500 | |
| Dividends | $9,000 | |
| Per-share market price | $36 | $30 |
| Outstanding common shares | 2,000 | 2,000 |
- Compute the two performance ratios, leverage (debt/equity and interest coverage only), solvency (current and quick only), asset quality (receivable and inventory turnover only), expense control (return on sales only), performance, and other ratios from Figure 5–3 for 2020.
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- E5.4 (LO 3) The 2020 and 2019 financial statements of Ken’s Sportswear follow: Balance Sheet 2020 2019 Assets Cash $9,000 $7,000 Accounts receivable 12,000 9,000 Inventory 18,000 15,000 Property, plant, and equipment 60,000 50,000 Total assets $99,000 $81,000 Liabilities and Shareholders’ Equity Accounts payable $16,500 $12,000 Notes payable 46,000 40,000 Common stock 25,000 25,000 Retained earnings 11,500 4,000 Total liabilities and equity $99,000 $81,000 2020 2019 Income Statement Sales (all on credit) $72,000 Less: Cost of goods sold 30,000 Gross profit $42,000 Operating expenses 12,000 Net income from operations $30,000 Interest expense 5,000 Net income before taxes $25,000 Income tax expense 8,500 Net income $16,500 Dividends $9,000 Per-share market price $36 $30 Outstanding common shares 2,000 2,000 Compute the two performance ratios, leverage (debt/equity and interest coverage only),…E5.4 (LO 3) The 2020 and 2019 financial statements of Ken’s Sportswear follow: Balance Sheet 2020 2019 Assets Cash $9,000 $7,000 Accounts receivable 12,000 9,000 Inventory 18,000 15,000 Property, plant, and equipment 60,000 50,000 Total assets $99,000 $81,000 Liabilities and Shareholders’ Equity Accounts payable $16,500 $12,000 Notes payable 46,000 40,000 Common stock 25,000 25,000 Retained earnings 11,500 4,000 Total liabilities and equity $99,000 $81,000 2020 2019 Income Statement Sales (all on credit) $72,000 Less: Cost of goods sold 30,000 Gross profit $42,000 Operating expenses 12,000 Net income from operations $30,000 Interest expense 5,000 Net income before taxes $25,000 Income tax expense 8,500 Net income $16,500 Dividends $9,000 Per-share market price $36 $30 Outstanding common shares 2,000 2,000 Compute the two performance ratios, leverage (debt/equity and interest coverage only),…E4.2 (LO 2, 3) Presented below is information related to Viel Company at December 31, 2020.Sales revenue $310,000Cost of goods sold 140,000Selling and administrative expenses 50,000Gain on sale of plant assets 30,000Unrealized gain on available-for-sale debt investments 10,000Interest expense 6,000Loss on discontinued operations 12,000Dividends declared and paid 5,000 Retained Earnings, 1/1/20 100,000 Tax rate 15%…
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- Orbit Limited : Statement of Financial Position as at 31 December 2022 2021 Non-current Assets R11 810 000 R7 560 000 Property, Plant, Equipment R10 025 000 R6 250 000 Investments R1 785 000 R1 310 000 Current Assets R4 190 000 R4 690 000 Inventories R 1 875 000 R2 350 000 Account Receivable R1 925 000 R2 200 000 Cash R390 000 R140 000 Toatal Assets R16 000 000 R12 250 000 Equities & Liabilities Equity ? ? Oridanary share capital R5 480 000 R3 680 000 Retained earnings ? ? Non-current Liabilities R4 500 000 R3 800 000 Loan (20% p.a) R4 500 000 R3 800 000 Current Liabilities R2 300 000 R1 500 000 Accounts payable? R2 300 000 R1 500 000 Calculate the increase in the retained earnings over the two-year period.The following are the statement of financial position of Abok Ltd. As at 31 December 2019 and 2020 2019 2020 ASSETS Sh. Sh. Goodwill 115,000 90,000 Land and Buildings 200,000 170,000 Plant 80,000 200,000 Debtors 160,000 200,000 Stock 77,000 109,000 Bills Receivable 20,000 30,000 Cash in hand 15,000 10,000 Bank 10,000 8,000 677,000 817,000 Capital and liabilities Ordinary share capital 300,000 400,000 8% redeemable preference share capital 150,000 100,000 General reserves 40,000 70,000 Retained Earnings 30,000 48,000 Proposed dividend 42,000 50,000 Creditors 55,000 83,000 Bills Payable 20,000 16,000 Provision for taxation 40,000 50,000 677,000 817,000 Additional Information: (a) Depreciation of Sh. 10,000 and Sh. 20,000 have been charged on Plant and Land and Buildings in 2020. (b) An interim dividend of Sh. 20,000 has been paid in 2020. (c) Sh. 35,000 Income tax was paid during 2020. Required to prepare Cash Flow Statement in accordance with IAS-7BB Incorporated had the following balances of assets and liabilities in 2022: Beginning balances: Cash and cash equivalents P250,000 Accounts payable P120,000 Trade and other receivables 150,000 Notes payable 80,000 Inventories 210,000 Bonds payable 200,000 Prepaid expenses 50,000 Mortgage payable 240,000 Property, plant and equipment - net 350,000 Ending balances: Cash and cash equivalents P230,000 Accounts payable P100,000 Trade and other receivables 250,000 Notes payable 60,000 Inventories 300,000 Bonds payable 170,000 Prepaid expenses 40,000 Mortgage payable 240,000 Property, plant and equipment - net 300,000 How much is the net income in 2022?
- E4.17 (LO 2, 3, 5) The following information was taken from the records of Roland Carlson Inc. for the year 2020: Income tax applicable to income from continuing operations $187,000, Income tax applicable to loss on discontinued operations $25,500Gain on sale of equipment $ 95,000 Cash dividends declared $ 150,000Loss on discontinued operations 75,000 Retained earnings January 1, 2020 600,000Administrative expenses 240,000 Cost of goods sold 850,000Rent revenue 40,000 Selling expenses 300,000Loss on write-down of inventory 60,000 Sales revenue 1,900,000 Shares outstanding during 2020 were 100,000. Prepare a multiple step income statement (including earnings per share) and a statement of…25. Coronado Inc., a greeting card company, had the following statements prepared as of December 31, 2020. CORONADO INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 35,000 18,200 Inventory 40,000 60,500 Prepaid rent 5,000 4,100 Equipment 152,900 131,100 Accumulated depreciation—equipment (35,200 ) (25,100 ) Copyrights 45,800 50,000 Total assets $310,800 $297,300 Accounts payable $46,100 $40,100 Income taxes payable 3,900 5,900 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,100 10,000 Long-term loans payable 60,400 69,300 Common stock, $10 par 100,000 100,000…The Murdock Corporation reported the following balance sheet data for 2024 and 2023: 2024 2023 Cash $ 98,465 $ 34,355 Available-for-sale debt securities (not cash equivalents) 25,000 104,000 Accounts receivable 99,000 85,350 Inventory 184,000 162,100 Prepaid insurance 3,210 3,900 Land, buildings, and equipment 1,288,000 1,144,000 Accumulated depreciation (629,000) (591,000) Total assets $ 1,068,675 $ 942,705 Accounts payable $ 93,440 $ 167,670 Salaries payable 27,600 34,000 Notes payable (current) 42,100 94,000 Bonds payable 219,000 0 Common stock 300,000 300,000 Retained earnings 386,535 347,035 Total liabilities and shareholders' equity $ 1,068,675 $ 942,705 Additional information for 2024: (1) Sold available-for-sale debt securities costing $79,000 for $85,400. (2) Equipment costing $20,000 with a book value of $6,900 was sold for $8,850. (3) Issued 6% bonds payable at face value, $219,000. (4) Purchased new equipment for $164,000 cash. (5)…
