Following is thebalance sheet of X, Y and Z sharing profits and losses in the ratio 3 : 3 : 2.BALANCE SHEETas at 31.3.2015Liabilities$Assets$Creditors30,000Cash20,000Bills payable40,000Debtors50,000Capitals :Stock25,000X 50,000Y 30,000Buildings75,00020.0001,00,0001,70,0001,70,000On 1st April, 2015, the partners decided to share future profits in the ratio5:3:2 and following revaluations were to be made :-(i) Building was to be appreciated by 20%(ii) 10% of debtors were bad.(iii) A provision for discount on creditors was to be made @ 2%.Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of there-constituted firm.

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Answered: Following is the balance sheet of X, Y…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 4AP

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Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for 20X3 it as follows (amounts in millions): Required: Next Level Compute the following for 20X3. Provide a brief description of what each ratio reveals about McCormick 1. return on common equity 2. debt-to-assets 3. debt-toequity 4. current 5. quick (McCormick uses cash and equivalents, short-term securities and receivables in their quick ratio calculation.) 6. inventory turnover days 7. accounts receivable turnover days 8. accounts payable turnover days 9. operating cycle (in days) 10. total asset turnover Use the following information for 14-17 and 14-18: The Hershey Company is one of the worlds leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hersheys consolidated balance sheets for 20X2 and 20X3 follow.
The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:
Profitability ratios The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: December31 2016 2015 2014 Total assets......................................... 4,800,000 4,400,000 4,000,000 Notes payable (8% interest)........................... 2,250,000 2,250,000 2,250,000 Common stock...................................... 250,000 250,000 250,000 Preferred 4% stock, 100 par (no change during year)........................... 500,000 500,000 500,000 Retained earnings................................... 1,574,000 1,222,000 750,000 The 2016 net income was 372,000, and the 2015 net income was 492,000. No dividends on common stock were declared between 2014 and 2016. a. Determine the rate earned on total assets, the rate earned on stockholders equity, and the rate earned on common Stockholders equity for the years 2015 and 2016. Round to one decimal place. b. What conclusions can be drawn from these data as to the companys profitability?
The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - 1. The value of computer reduced by 10% 2. A part of value of Patents for RO 1000 became useless and it has to be reduced. 3. Buildings to be revalued at RO 55,000 4. Furniture was depreciated by 10% 5. S shall bring RO 25,000 as capital for ¼ share of future profits a) Calculate New Profit Sharing Ratio and Sacrificing Ratio b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission.
The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - 1. The value of computer reduced by 10% 2. A part of value of Patents for RO 1000 became useless and it has to be reduced. 3. Buildings to be revalued at RO 55,000 4. Furniture was depreciated by 10% 5. S shall bring RO 25,000 as capital for ¼ share of future profits a) Calculate New Profit Sharing Ratio and Sacrificing Ratio b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission. Answer: Revaluation Account…
The following information is available from the annualreport of Frixell, Inc.: Currentliabilities . . . . $300,000Operatingincome . . . . . 240,000Net income . . . . 80,000 Currentassets . . . . $ 480,000Average totalassets . . . . 2,000,000Average totalequity . . . . 800,000Which of the following statements are correct? (More thanone statement may be correct.)a. The return on equity exceeds the return on assets.b. The current ratio is 0.625 to 1.
Calculate the following for Co. XYZ: a. Current ratio b. Debt ratio Assets: Cash and marketable securities $400,000 Accounts receivable 1,415,000 Inventories 1,847,500 Prepaid expenses 24,000 Total current assets $3,686,500 Fixed assets 2,800,000 Less: accumulated depreciation 1,087,500 Net fixed assets $1,712,500 Total assets $5,399,000 Liabilities: Accounts payable $600,000 Notes payable 875,000 Accrued taxes Total current liabilities $1,567,000 Long-term debt 900,000 Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,375,000 Selling and administrative expense 1,000,500 Depreciation expense 135,000 Interest expense Earnings before taxes $765,000 Income taxes Net income Common stock dividends $230,000 Change in retained earnings
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)
Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA)? Inventory 12,500Current Assets 50,000Current Liabilities 40,000Non-current Assets 90,000Net Profit 12,000Shareholders' Equity 65,000 Select one:a. 18.5%b. 12.2%c. 9.23%d. 13.3%
Selected data for the Rubio Company follow:Current assets.............. $ 31,200 Current liabilities ............ $ 26,000Long-term assets ......... 185,000 Long-term liabilities........ 110,000Total revenues............. 199,000 Total expenses................. 160,000Based on these facts, what are Rubio’s current ratio and debt ratio?Current ratio Debt ratioa. 1.200 0.629b. 1.590 0.629c. 8.315 0.833d. 1.244 0.236
using the table find the folloing for the four firms: Enterprise value to EBITDA Ratio Price-Earnings multiole PEG raio Cpmpany Market Value (OMR million) Net Income (OMR million) Earnings Growth Market Value of Equity (OMR million) Market Value of Debt (OMR million) Cash (OMR million) EBITDA (OMR million) Happy 117.95 22.5 4% 53.07 64.87 41.25 43.85 Smart 112.35 20.25 4.5% 59.53 52. 79 45 44.88 Kind 116.26 21 4.65% 69.76 46.5 63.95 28.20 Cheerful 120 24 5% 42 78 62.4 44.32
From the following balance sheet of Sohel & Co Ltd as at 31st March 2013 and also comment on the ratios. You may use online sources to write about the ratios. Liabilities Amount (RO) Assets Amount (RO) Equity shares capital 6%Preference share capital 7%Debentures 8% Public Debt Bank over draft Creditors Outstanding expenses Proposed dividend Reserves Provision for taxation Net Profit 100,000 100,000 40,000 20,000 40,000 60,000 7,000 10,000 150,000 20,000 20,000 567,000 Cash in hands Cash at bank Bills Receivable Short term investment Debtors Stocks Furniture Machinery Land and Building Good will Preliminary Expenses 3,000 9,000 30,000 20,000 70,000 40,000 30,000 100,000 220,000 35,000 10,000 567,000 Net Sales - 200000 d) Return on Equity

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