Peanut Queen and Lord of ice are two competitors selling ice-cream. Below is the informationpertaining to the two businesses for the financial year ended June 30, 2021.Peanut QueenLord of IceNet Profit ($)105,000280,000Cost of Goods Sold ($)Total Assets ($)100,0001,000,000500,000800,000Total Liabilities250,000300,000Gross Profit ($)110,000600,000Lisa has capital to invest in one of the businesses. She likes peanut butter ice-cream but needs toconsider the financial performance of the two businesses to make an informed investment decision.Required:In the table below, calculate Net Profit Margin, Asset Turnover, Financial Leverage, and Return onEquity (ROE) ratios for the two businesses.Peanut QueenLord of IceNet Profit MarginAsset TurnoverFinancial LeverageROEBased on the financial performance alone, which one of the two businesses would you recommendto Lisa to invest in? Considering the components of the DuPont model, which component is drivingthe financial performance of the business you chose?Answer here:Provide one example of non-financial information Lisa could consider in addition to the ratioscalculated above when choosing between the two businesses. Briefly explain how that example ofnon-financial information could assist Lisa in her decision-making process.Answer here:

solution formula used Revenue =COGS + gross profit net profit margin =net…

tequired: n the table below, calculate Net Profit Margin, Asset Turnover, Financial Leverage, and Return quity (ROE) ratios for the two businesses. Peanut Queen Lord of Ice Net Profit Margin Asset Turnover Financial Leverage ROE

tequired: n the table below, calculate Net Profit Margin, Asset Turnover, Financial Leverage, and Return quity (ROE) ratios for the two businesses. Peanut Queen Lord of Ice Net Profit Margin Asset Turnover Financial Leverage ROE

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 4MAD: Monster Beverage Corporation (MNST) develops, markets, and sells energy and other alternative...

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Monster Beverage Corporation (MNST) develops, markets, and sells energy and other alternative beverage brands. Brown-Forman Corporation (BF.B) manufactures and sells a wide variety of spirit and wine beverages, such as Jack Daniels. The cost of goods sold and inventory were obtained from a recent annual report for both companies as follows (in millions): a. Determine the inventory turnover for both companies. Round all calculations to one decimal place. b. Determine the number of days sales in inventory for both companies. Use 365 days and round all calculations to one decimal place. c. Interpret the difference in inventory efficiency based on the companies respective product types.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
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Planet Ltd produces fridges and freezers, which are sold to retailers. The financial statements for the last three years are as follows: Income statements for the year ending 31st December 2021 2022 £000 £000 Revenue 336,250 427,038 Cost of sales (126,675) (190,012) Gross profit 209,575 237,025 Administration expenses (73,290) (95,795) Distribution expenses (14,678) (8,720) Operating profit 121,407 121,931 Interest (8,750) (11,250) Profit before tax 118,142 166,326 Tax (22,531) (22,136) Profit for the year 90,126 88,545 Statements of financial position as at 31st December 2021 2022 ￡000 ￡000 Non-current assets Property, plant and equipment 286,250 327,650 Current assets Inventories 37,000 28,000 Trade receivables 42,000 43,500 Cash 19,632 24,570 98,632 96,070 Total assets 384,882…
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Planet Ltd produces fridges and freezers, which are sold to retailers. The financial statements for the last three years are as follows: Income statements for the year ending 31st December 2021 2022 £000 £000 Revenue 336,250 427,038 Cost of sales (126,675) (190,012) Gross profit 209,575 237,025 Administration expenses (73,290) (95,795) Distribution expenses (14,678) (8,720) Operating profit 121,407 121,931 Interest (8,750) (11,250) Profit before tax 118,142 166,326 Tax (22,531) (22,136) Profit for the year 90,126 88,545 Statements of financial position as at 31st December 2021 2022 ￡000 ￡000 Non-current assets Property, plant and equipment 286,250 327,650 Current assets Inventories 37,000 28,000 Trade receivables 42,000 43,500 Cash 19,632 24,570 98,632 96,070 Total assets 384,882…
Following information is related to the financial results of Al Baloushi Iron & Steel LLC: Particulars Amount Stock (1-1-2020) 5,000 Purchases 70,000 Purchases Returns 2,500 Direct Wages 5,000 Office Salaries 4,500 Carriage Inwards 4,500 Carriage Outwards 3,000 Rent Paid 2,500 Sales Returns 7,500 Stock (31-12-2020) 6,500 Sales 100,000 Calculate the Cost of Goods Sold and Gross Profit from the above information.