JKL Company COMPARATIVE BALANCE SHEET For the Year 2015 & 2016 Assets 2015 2016 Cash 290,000 120,000 400,000 100,000 20,000 80,000 20.000 520,000 620,000 Accounts Receivable Trading Securities 40,000 Inventories 60,000 Prepaid Expenses Total Current Assets 10,000 Total Non-Current Assets 200,000 300,000 Total Assets 720,000 920,000 Liabilities Total Current Liabilities 100,000 50,000 Total Non-Current Liabilities 300,000 450,000 Owner's Equity Total Owner's Equity 320,000 420,000 Total Liabilities & OE 720,000 920,000 JKL Company COMPARATIVE INCÓME STATEMENT For the Year 2015 & 2016: 2015 2016 Net Sales 700,000 900,000 Cost of Goods Sold (100,000) (80,000) Gross Profit 600,000 820,000 Operating Expenses (50,000) (120,000) Earnings Before Interest 550,000 and Taxes 700,000 - Interest Expense [10,000 150.000) NI before Tax 540,000 650,000 Income Tax [162,000) (195,000) Net Income 378,000 455,000

JKL Company COMPARATIVE BALANCE SHEET For the Year 2015 & 2016 Assets 2015 2016 Cash 290,000 120,000 400,000 100,000 20,000 80,000 20.000 520,000 620,000 Accounts Receivable Trading Securities 40,000 Inventories 60,000 Prepaid Expenses Total Current Assets 10,000 Total Non-Current Assets 200,000 300,000 Total Assets 720,000 920,000 Liabilities Total Current Liabilities 100,000 50,000 Total Non-Current Liabilities 300,000 450,000 Owner's Equity Total Owner's Equity 320,000 420,000 Total Liabilities & OE 720,000 920,000 JKL Company COMPARATIVE INCÓME STATEMENT For the Year 2015 & 2016: 2015 2016 Net Sales 700,000 900,000 Cost of Goods Sold (100,000) (80,000) Gross Profit 600,000 820,000 Operating Expenses (50,000) (120,000) Earnings Before Interest 550,000 and Taxes 700,000 - Interest Expense [10,000 150.000) NI before Tax 540,000 650,000 Income Tax [162,000) (195,000) Net Income 378,000 455,000

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.10E

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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?
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Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) Inventory turnoverenter the number rounded to 2 decimal places Days in inventoryenter the number of days rounded to 0 decimal…
Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83)
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Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATIONBalance SheetsDecember 3120222021Cash$12,500 $6,100 Accounts receivable18,400 26,600 Inventory13,200 10,200 Land34,200 30,200 Building76,200 76,200 Accumulated depreciation(17,200) (14,200)Total137,300 135,100 Accounts payable19,500 33,300 Common stock ($5 par)74,500 74,500 Retained earnings43,300 27,300 Total137,300 135,100 Swifty’s 2022 income statement included net sales of $122,000, cost of goods sold of $82,000, and net income of $31,000. Compute the following ratios for 2022. (Round Debt to total assets ratio to 1 decimal place, e.g 1.8 and all percentage and days answers to 0 decimal places, e.g 18 or 25% and all other answers to 2 decimal places, e.g. 1.83) (i)Earnings per share$enter a dollar amount rounded to 2 decimal places (j)Payout ratioenter percentages rounded to 0 decimal…
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