EASSY Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2018 Sales P 480,000 Cost of sales 336,000 Gross profit 144,000 Operating expenses 57,600 86,400 12,960 Income before taxes Income tax (30%) Net income 73,440 Statement of Financial Position December 31, 2018 Current assets P 420,000 Non-current assets 500,000 920,000 Total assets Current liabilities 90,000 250,000 490,000 Non-current liabilities Ordinary shares Retained earnings Total liabilities and shareholders' equity 90,000 P 920,000 Additional information: 1. Dividends payout is 60%. 2. Only current assets and current liabilities are directly related to sales. 3. The business expects a 30% increase in sales next year. 4. The business is expecting to retain 40% of the earning next year. Expected increase in assets Your answer Spontaneous increase in current iabilities.
EASSY Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2018 Sales P 480,000 Cost of sales 336,000 Gross profit 144,000 Operating expenses 57,600 86,400 12,960 Income before taxes Income tax (30%) Net income 73,440 Statement of Financial Position December 31, 2018 Current assets P 420,000 Non-current assets 500,000 920,000 Total assets Current liabilities 90,000 250,000 490,000 Non-current liabilities Ordinary shares Retained earnings Total liabilities and shareholders' equity 90,000 P 920,000 Additional information: 1. Dividends payout is 60%. 2. Only current assets and current liabilities are directly related to sales. 3. The business expects a 30% increase in sales next year. 4. The business is expecting to retain 40% of the earning next year. Expected increase in assets Your answer Spontaneous increase in current iabilities.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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