Evaluate the two departments for Moxie Products. Compare the year’s performance of the two departments in terms of ROI and RI. Which department has created the most wealth for Moxie shareholders in the past year?
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Evaluate the two departments for Moxie Products.
Compare the year’s performance of the two departments in terms of
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- QUESTION 4 The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000 The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed b. Residual incomeThe following scenario relates to questions 16 – 20. Summary financial information for ABC Co is given below, covering the last two years. 20X8 20X7 STATEMENT OF PROFIT OR LOSS (EXTRACT) $’000 $’000 Revenue 74,521 68,000 Cost of sales 28,256 25,772 Salaries and wages 20,027 19,562 Other costs 11,489 9,160 Profit before interest and tax 14,749 13,506 Interest 1,553 1,863 Tax 4,347 3,726 Profit after interest and tax 8,849 7,917 Dividends payable 4,800 3,100 20X8 20X7 STATEMENT OF FINANCIAL POSITION (EXTRACT) $’000 $’000 Shareholders’ funds 39,900 35,087 Long term debt 14,000 17,500 53,900 52,587 Other information Number of shares in issue (‘000) 14,000 14,000 P/E ratio (average for year) ABC Co 14.0 13.0 Industry 15.2 15.0 Shareholders’ investment EPS $0.63 $0.57 Share price $8.82 $7.41 Dividend per share $0.34 $0.22 What is the net profit margin for 20X8?10. If the net income after tax of the company is P4,000,000, starting balance of assets is P500,000 and the ending balance of assets is P700,000, what is the return of assets? *a. 8b. 5.71c. 6.6667d. 3.3333 2. If the quick assets of the company amounted to P90,000, and the quick ratio is 9, how much is the current liabilities of the entity? *a. P810,000b. P89,997c. P90,009d. P10,000 7. If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is 30%, how much is the profit margin ratio? *a. 0.40b. 0.28c. 2.5d. 3.57 8. Interest expense for the year amounted to P90,000. Income tax expense is P100,000. If net income after tax is P620,000, what is the times interest earned ratio? *a. 6.2b. 9c. 6.888d. P720,000 1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the current ratio of the entity? *a. P800,000b. P400,000c. 3d. 1/3 3. If net sales is P200,000 and the average accounts receivable is P50,000, what is…
- The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incomA2 1ai Use the following information for Delta Corporation : Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a…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%…
- 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…Question C5 Majan Ltd income statement for the year ended 31st Dec 2020 and the balance sheets as at 31st Dec 2009 and 2019 are as follows: Income statement OMR in million Revenue 312 Cost of sales (177) Gross profit 135 Distribution expenses (36) Administrative expenses (15) 84 Rental income 14 Operating profit 98 Interest payable (13) Profit before taxation 85 Taxation (18) Profit for the year 67 Balance sheet as at 31st Dec 2020 and 2019 2020 2019 OMR in million OMR in million Non – current assets Property, plant and equipment Land and buildings 155 155 Plant and machinery 157 163 312 318 Current assets Inventories 18 21 Trade receivables 73 70 Current liabilities…39 Atlanta Corporation, a domestic corporation, had the following data for the years 2022 and 2023: 2022 2023 Sales P 10,000,000 P 15,000,000 Cost of sales 4,000,000 6,000,000 Deductible expenses 6,100,000 7,000,000 Capital gains 50,000 100,000 Interest income on trade notes receivable 10,000 30,000 Rent income 430,000 600,000 Total assets 500,000,000 550,000,000 How much is the total deferred charges in 2023?
- Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to: A. 14.04%. B. 14.82%. C. 24.71%. D. 26.68%.f2. Subject :- Finance Company A has sales of $560, costs of $100 (not including depreciation), depreciation expense of $40, interest expense of $40, and a tax rate of 21 percent, current assets of $180, net fixed assets of $1480, current liabilities of $240, and long-term debt of $750. What is the time interest earned (TIE)? (keep two decimal places)E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Increase Selected balance sheet accounts 2020 2019 (Decrease)AssetsAccounts receivable $154,000 $120,000 $34,000Property, plant, and equipment 631,000 581,000 50,000Accumulated…