DokencesRefer the following table.Focus Metals Inc.Comparative Balance Sheet InformationNovember 30(millions of $)CashAccounts receivable (net)InventoryPlant and equipment (net)Accounts payableLong-term notes payable*Common sharesRetained earnings$Focus Metals Inc.Income StatementNet salesCost of goods soldGross profitOperating expenses:Depreciation expenseOther expensesTotal operating expensesProfit from operations:202323 $414742,6862971,770370760For Year Ended November 30(millions of $)$*90% of the plant and equipment are secured by long-term notes payable.2,770213202293260672,33037027720232022$2,790 $1,992972762$1,818 $1,230102 $745847971$102612714516 Focus Metals Inc.Income StatementFor Year Ended November 30(millions of $)Net salesCost of goods sold.Gross profitOperating expenses:Depreciation expenseOther expensesTotal operating expensesProfit from operations.Interest expenseIncome tax expenseProfitRatio2023$2,790972$1,818Debt ratioEquity ratioPledged assets to secured liabilitiesTimes interest earned$$2022$1,992762$1,230Required:Calculate Focus Metals' solvency ratios for 2022 and 2023. (Round the final answers to102 $ 102745612847714971 $5161451795155775 $2822023%%1times2022%%1times

Ratio analysis is defined as a method of analyzing the financial statements where different ratios…

Refer the following table. Focus Metals Inc. Comparative Balance Sheet Information November 30 (millions of $) Cash Accounts receivable (net) Inventory Plant and equipment (net) Accounts payable Long-term notes payable* Common shares Retained earnings $ Focus Metals Inc. Income Statement Net sales Cost of goods sold. Gross profit Operating expenses: 2023 Depreciation expense Other expenses Total operating expenses Profit from operations. 2022 23 $ 93 414 260 74 67 2,686 297 1,770 370 760 *90% of the plant and equipment are secured by long-term r For Year Ended November 30 (millions of $) 2,770 213 2,330 370 277 2023 $2,790 2022 $1,992 972 762 $1,818 $1,230 102 745 847 971 3 $ 102 612 714 516

Refer the following table. Focus Metals Inc. Comparative Balance Sheet Information November 30 (millions of $) Cash Accounts receivable (net) Inventory Plant and equipment (net) Accounts payable Long-term notes payable* Common shares Retained earnings $ Focus Metals Inc. Income Statement Net sales Cost of goods sold. Gross profit Operating expenses: 2023 Depreciation expense Other expenses Total operating expenses Profit from operations. 2022 23 $ 93 414 260 74 67 2,686 297 1,770 370 760 *90% of the plant and equipment are secured by long-term r For Year Ended November 30 (millions of $) 2,770 213 2,330 370 277 2023 $2,790 2022 $1,992 972 762 $1,818 $1,230 102 745 847 971 3 $ 102 612 714 516

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

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.18E

See similar textbooks

Similar questions

Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?
Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
The following shows excerpts from Camole Companys statement of cash flows and other financial records. Compute the following for the company: A. free cash flow B. cash flows to sales ratio C. cash flows to assets ratio
Use the following information from Chocolate Companys financial statements to determine operating net cash flows (indirect method).
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Roberts Company provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the indirect method.
Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
Use the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.