Prepare a Vertical Analysis.
Q: E8.2 (LO 1, 2, 3), AN Suni, the manager of Stargazers, is analyzing the company’s MOH costs from…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred…
A: Par value can be calculated by dividing the total value of shares by the number of outstanding…
Q: The cash account for Brentwood Bike Co. at May 1 indicated a balance of $32,991. During May, the…
A: The bank Reconciliation is prepared at year end to reconcile the difference between the end balance…
Q: Calculate maturity value for the interest-bearing note using ordinary interest: Face Value…
A: Maturity value: It implies to the total value of the money invested that is received by the investor…
Q: Trini Company set the following standard costs per unit for its single product Direct materials (30…
A: Standard costing is a tool used by the managers which creates a standard usage and standard rate of…
Q: The following data relate to the operations of Shillow Company, a wholesale distributor of common…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: "Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers…
A: Since you have posted a question with multiples sub-parts, we will do the first three sub-parts for…
Q: George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1,…
A: The sum of an employee's paycheck that is left over after payroll deductions such as taxes, bonuses,…
Q: Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with…
A: Tax liability is the amount of money you owe to tax authorities such as your local , state and…
Q: Laura Avila is a 20-year-old female who recently graduated from CNM with her associates degree in…
A:
Q: Natural Resources SE7. Walden Green Company purchased land containing an estimated 4,000,000 tons of…
A: Depletion is the allocation of cost paid to acquire the asset from which an entity will receive…
Q: The following information is available for the two production departments, machining and assembly,…
A: COST ALLOCATION Cost allocation is the Process of identifying, Aggregating & Assigning Cost to…
Q: The following information is available for Sandbill Corporation for the year ended December 31,…
A: Income Statement of Sandhill Corporation for the year ended December 31,2022 Particular…
Q: Mobilee Oil Company accepted a $10,000, 120 day note dated March 3 at 8 1/2% to settle a past due…
A: The note receivables is a promise from the creditor to pay the amount with interest on the due date.…
Q: Condensed income statements for Jennifer Corporation are shown below for two years. Sales Cost of…
A: NOTE: * = When the ending inventory of 2021 will be overstated, the cost of goods sold for 2021…
Q: quity (January 1) Common stock—$5 par value, 100,000 shares authorized, 35,000 shares issued and…
A: Cash dividends refers to the sum value of money or cash allocated by a company to its stockholders…
Q: On January 1, Crane Corporation has 99,000 shares of no-per common stocked and outstanding. The…
A: The journal entries are the base for the preparation of the various ledger accounts. The…
Q: Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable…
A: Answer:- Break-even point meaning:- The break-even point is reached when overall costs and total…
Q: On May 12, Alyssa accepted a $5,000 note in granting a time extension of a bill for goods bought by…
A: A note is an instrument issued or received by an entity whenever there is any payment or receipt…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: Master budget refers as the aggregation of all the lower levels budget , which are calculated by the…
Q: SIMPly Power Inc., manufactures and sells two products: Product V9 and Product B1. Data concerning…
A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…
Q: 6) Use linear interpolation to find the indicated value. A vehicle purchased for $ 33,000…
A: Interpolation is a type of estimation of finding new data points based on given range of data…
Q: Bob Thebeau reviewed the records and found the following errors: 1. Cash received from a customer on…
A: Golden Rules of Accounting: Account Debit Credit Personal Accounts The Receiver The…
Q: rmer Company purchased machine on January 1, Year 1 for $91,000. The machine is estimated to have a…
A: Under straight line method of depreciation, depreciation is based on depreciable cost and useful…
Q: rts used depending on the focus of the end user. Which of the following best defines a document…
A: A flow chart is a graphical presentation of a process or a system. There are 4 types of process…
Q: Hoover Company acquired Burgess Company for $1,200,000 cash. The fair value of Burgess' assets was…
A: Goodwill refers to the concept of determine the extra sum of money value paid by the buyer to the…
Q: Culver Company was undergoing an end of year audit of its financial records. The auditors were in…
A: Under FOB shipping point, risk and rewards related to the ownership is transferred to the buyer when…
Q: anton Company makes one product and it provi ving information to help prepare the master bud e…
A: Raw material refers to the major sources of developing of a product since raw materials are…
Q: Ron Valdez worked for two different employers. Until May, he worked for Rowland Construction Company…
A: Taxation The term "taxation" refers to the process through which a taxing authority, typically a…
Q: Leggs Company reports total assets and total sharehold of $710,000 and $550,000, respectively, at…
A: Retained earning is net income remaining after doing the payment for dividend and retained earning…
Q: You have the option of buying a property or just leasing it, in the first case you must pay 20% of…
A: Introduction In a discounted cash flow analysis, the interest rate used to compute the present value…
Q: On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected…
A: Under straight line method of depreciation, depreciation is based on depreciable cost and useful…
Q: a. (*) What is Dulaney's current profit margin? What is its current yearly ROA? b. (**) Suppose COGS…
A: Given in the question: Sales $50,000,000 Cost of Goods Sold $30,000,000 Pre-tax…
Q: 5. If 116,500 pounds of raw materials are needed to meet production in August, how many pounds of…
A:
Q: What is the regular selling price of an item purchased for $1270 if the markup is 20% of the regular…
A: According to the given question, we are required to compute the regular selling price. Mark-up:…
Q: Renewable Energies, Incorporated (REI) paid $100,000 to purchase a windmill. The windmill was…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: What do you think about estate taxes at the state level? How do we see this play out with retirees?
A: The estate tax is the tax on the transfer of the estate of the deceased person. It applies to the…
Q: company. Given the company's decentral icipate a minimum rate of return of at leas hieved a 14%…
A: Answer : Residual income =Actual net operating Income - Minimum operating Income Minimum operating…
Q: Current Attempt in Progress Cullumber Company reported retained earnings at December 31, 2021, of…
A: RETAINED EARNINGS Retained Earning are the amount of Profit a Company has left over after paying…
Q: Sheridan Corporation has 2.500 shares of 7% 5130 par value preferred stock outstanding at December…
A: Non-cumulative is a kind of preferred shares wherein the shareholders receive the dividend only for…
Q: Managerial accounting: A.Is based on GAAP B.Includes only financial measure C.Is designed for…
A: Managerial accounting is primarily concerned with assessing the internal requirements of firms and…
Q: How does the percentage of ownership a company has in an investment effect them? Would the…
A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method…
Q: Marina is a 40% partner in a beauty salon and serves as the manager. Under the terms of the…
A: A partnership agreement, which is a contract between the partners of the firm, specifies the terms…
Q: On May 1, the Morse Company accepted a 60-day, $15,000 non-interest-bearing note from U Corporation.…
A: Note payable is a promise to pay certain amount of money on maturity date. The note can be with…
Q: On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts…
A: Increase is assets is debited while increase in liabilities is credited and vice-a-versa. The…
Q: As a student of financial Accounting, if a supplier has sold you goods on credit, take us through…
A: Answer:- Financial accounting meaning:- Financial accounting is a particular discipline of…
Q: A manufacturing company that produces a single product has provided the following data concerning…
A: Absorption costing is referred to as a full costing or full costing method in that you capture all…
Q: The following events take place: 1. Hector Madras died and left 100 acres of undeveloped land to the…
A: Fund Accounting: A type of accounting called fund accounting is largely utilised by charity and…
Q: identify and define 3 hazards and loss exposures that are mitigated through effective asset…
A: An asset/liability management model addresses three significant areas of risks that financial…
Q: A company purchased $2,000 of merchandise on August 15 with terms 1/10, n/30. On August 17, it…
A: Net Purchase :— It is purchase price less purchase return less purchase discounts. Purchase…
Prepare a Vertical Analysis.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Use the following income statement of Elliott Game Theory Consulting to determine its net operating profit after taxes (NOPAT). Use 25% as the tax rate. Elliott Game Theory Consulting Income Statement for Year Ending December 31Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
- Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.Intel-period Tax Allocation Chris Green, CPA, is auditing Rayne Co.s 2019 financial statements. For the year ended December 31, 2019, Rayne is applying GAAP for income taxes. Raynes controller, Dunn, has prepared a schedule of all differences between financial statement and income tax return income. Dunn believes that as a result of pending legislation, the enacted tax rate at December 31, 2019, will be increased for 2020. Dunn is uncertain which differences to include and which rates to apply in computing deferred taxes. Dunn has requested an overview of GAAP from Green. Required: Prepare a brief memo to Dunn from Green that identifies the objectives of accounting for income taxes, defines temporary differences, explains how to measure deferred tax assets and liabilities, and explains how to measure deferred income tax expense or benefit.Intraperiod Tax Allocation Wright Company reports the following information for the year ended December 31, 2019: Required: 1. Prepare the year-end journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the preceding information. 2. Prepare Wrights 2019 income statement and statement of retained earnings.
- Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Logitech's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its fiscal year ended March 31, 2019 ($ thousands). Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Financial information Net sales Net operating profit after tax (NOPAT) Net operating assets (NOA) $2,788,322 211,362 571,823 Use the parsimonious method to forecast Logitech's sales, NOPAT, and NOA for fiscal years ended March 31, 2020 through 2023 using the following assumptions. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with two decimal places_. Note: When completing the question…Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018, for Humana. Reported Horizon Period $ millions 2018 2019 2020 2021 2022 TerminalPeriod Sales $56,912 $57,766 $58,632 $59,512 $60,404 $61,008 NOPAT 2,492 2,542 2,580 2,619 2,658 2,684 NOA 4,032 4,097 4,158 4,221 4,284 4,327 Answer the following requirements assuming a discount rate (WACC) of 7.8%, a terminal period growth rate of 1%, common shares outstanding of 135.6 million, net nonoperating obligations (NNO) of $(6,129) million, which is negative because Humana’s nonoperating assets exceed its nonoperating liabilities, and no noncontrolling interest (NCI) on the balance sheet. (a) Estimate the value of a share of common stock using the residual operating income (ROPI) model as of December 31, 2018. Instructions: Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and…Selected ratios formulars Unilever 2021 BOPP 2021 ROCE PBIT / net assets * 100 (32,424/39,406 *100 = - 82% 102,154 / 192,758 *100 =53% Net Assets Turnover Revenue / Net Assets 526,912 / 39,406 = 13 times 214,174 / 192,758 = 1 time Gross Profit Margin Gross profit / revenue *100 97,046 / 526,912 *100 18.4% 115,462 / 214,174 * 100 54% Net Profit Before Tax PBT / revenue * 100 (35,005) / 526,912* 100 = -6.6% 104,778 / 214,174* 100 =48.9% Current Ratio Current assets / current liabilities 214,665/341,171 = 0.5 139,104 / 30,368 = 4.5 Quick Ratio Current assets – inventory / current liabilities 214,665-91,627 /341,171 = 0.4 139,104 -13,248/ 30,368 = 4.1 Inventory Days Inventory / cost of sales * 365 days 91,627/ 429,866 *365 = 77 days 13,248 / 101,397 *365 = 47 days Receivable Days Receivables / cost of sales * 365 days 24,515 / 429,866 *365 =20 days 92,860 / 101,397 *365 =334 days Payable Days…
- LOGIC COMPANYComparative Income StatementFor Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANYComparative Balance SheetDecember 31, 2019 and 2020 2020 2019 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and…LOGIC COMPANYComparative Income StatementFor Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANYComparative Balance SheetDecember 31, 2019 and 2020 2020 2019 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and…Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other Assets:Equipment, net P340,000 P320,000Other Assets 15,000 15,000Total Property and Other Assets P355,000 P335,000 Total Assets…