Please answer sub questiom 3 and 4 1. Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234should be entered as 12.34).)Gross margin percentage45.37 %2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e.,0.1234 should be entered as 12%).)Net profit margin percentage11 %3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should beentered as 12.3).)Return on total assets17.7 %4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should beentered as 12.3).)Return on equity35.5 % The financial statements for Castile Products, Inc., are given below:Castile Products, Inc.Balance SheetDecember 31AssetsCurrent assets:$ 22,000200,000320,00010,000CashAccounts receivable, netMerchandise inventoryPrepaid expensesTotal current assets552,000830,000Property and equipment, netTotal assets$1,382,000Liabilities and Stockholders' EquityLiabilities:$ 230,000330,000Current liabilitiesBonds payable, 12%Total liabilities560,000Stockholders' equity:Common stock, $10 par valueRetained earnings$ 130,000692,000Total stockholders' equity822,000Total liabilities and stockholders' equity$1,382,000Castile Products, Inc.Income StatementFor the Year Ended December 31SalesCost of goods sold$2,270,0001,240,000Gross marginSelling and administrative expenses1,030,000640,000390,00039,600Net operating incomeInterest expense350,400105,120Net income before taxesIncome taxes (30%)Net income$ 245,280Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory.$350,000. All sales were on account. Assets at the beginning of the year totaled $1,010,000, and thestockholders' equity totaled $705,000.

Average total assets = (beginning total assets + ending total assets)/2 = (1010000+1382000)/2 =…

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 22,000 200,000 320,000 10,000 552,000 830,000 Total current assets Property and equipment, net Total assets $1,382,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 230,000 330,000 Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 560,000 $ 130,000 692,000 Total stockholders' equity 822,000 Total liabilities and stockholders' equity $1,382,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,270,000 1,240,000 Gross margin Selling and administrative expenses 1,030,000 640,000 Net operating income Interest expense 390,000 39,600 Net income before taxes 350,400 105,120 Income taxes (30%) Net income $ 245,280 Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $350,000. All sales were on account. Assets at the beginning of the year totaled $1,010,000, and the stockholders' equity totaled $705,000.

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 22,000 200,000 320,000 10,000 552,000 830,000 Total current assets Property and equipment, net Total assets $1,382,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 230,000 330,000 Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 560,000 $ 130,000 692,000 Total stockholders' equity 822,000 Total liabilities and stockholders' equity $1,382,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,270,000 1,240,000 Gross margin Selling and administrative expenses 1,030,000 640,000 Net operating income Interest expense 390,000 39,600 Net income before taxes 350,400 105,120 Income taxes (30%) Net income $ 245,280 Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $350,000. All sales were on account. Assets at the beginning of the year totaled $1,010,000, and the stockholders' equity totaled $705,000.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.9MBA

See similar textbooks

Similar questions

Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
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?
Compute the following for year 2: 2-a. Percentage markup on sales. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4) 2-b. Income tax rate. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) 2-c. Net profit margin ratio. Was it a good or poor indicator of performance? (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 2-d. Percentage of total resources invested in property, plant, and equipment. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) 2-f. Return on assets. Assume that long-term debt increased to $36,810 in month 1 of year 2. (Round intermediate calculations to 3 decimal places and percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 2-g. Return on equity. (Round percentage answer to 2 decimal places (i.e.,…
b) Calculate mark-up (in percentage to 2 decimal places)c) Calculate the margin as a % to 1 decimal placed) What is the operating profit margin percentage if the selling expense isreduced by 25%? Show this to nearest whole number %e) Define the following and provide respective examples.f) If a company has a mark-up of 27% and sales revenue of £130,597, thenwhat is the cost of sales in whole £’s?g) If a company has a net margin of 50%, gross margin of 66.67% and costs of sale of £1,150,000, then what is the sales revenue and overhead?
From the below ratios provide a brief explanation about the profitability of Snick’s board shop. 5.1 Profitability ratios: - Return on assets 0.10 cents - Return on equity 0.71 cents - Profit margin 0.21 cents - Gross margin 54.29 %
Given the above information, calculate the net income. Enter the value in 2 decimal places, Sales 54,700 Cost of Goods Sold 51,650 Depreciation $700 Times Interest earned ratio 10 Tax rate 34%
The following summarized balance sheet is a display of what kind of analysis? Amount Percent Revenue 1,000,000 100% Cost of goods sold 550,000 55% Gross Profit 450,000 45% Horizontal Analysis Marginal analysis Common Size Analysis Ratio Analysis
After reviewing the information, calculate the following ratios for 2021. 1) Inventory turnover2) Profit margin3) Return on assets4) Free cash flow Round all answers to two decimal places.
Compute the following for Stanley Limited. Round your answers to two decimal places. All answers MUST be expressed in the unit as specified in the question, if any. Show your workings. (a) Gross Profit Rate (in %) (b) Current Ratio (c) Quick Ratio B Stanley Limited Statement of Financial Position 31 December 2021 ($ in million) Stanley Limited Income Statement For the year ended 31 December 2021 ($ in million) Question B5 (continued) (d) Accounts Receivable Turnover Rate (e) Return on Equity (%) (f) Debt Ratio (in %) (g) Price-Earnings Ratio
Given a profit margin = 15%, ROE = 25%, D/E = 1.25, and assets = $600, please calculate sales.
f Roten Rooters, Inc., has an equity multiplier of 1.05, total asset turnover of 2.31, and a profit margin of 3.2 percent, what is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)