The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020:($ in thousands)20212020Income statement informationNet sales$7,000 $6,000420Net income160Balance sheet informationCurrent assetsProperty, plant, and equipment (net)Total assets$ 9802,7202,370$ 3, 700$ 3, 300$1,940 $1,590930Current liabilitiesLong-term liabilitiesCommon stock930500330930500280Retained earningsLiabilities and shareholders' equity$ 3,300$ 3,700$Required:1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.)2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. Forexample, $150,000 rather than 150.)%1a. Profit margin on sales16. Return on assets1c. Return on equity2. Dividends paid

Ratio analysis is a tool that establishes a relationship between the different items. It is used to…

(S in thousands) 2020 2021 Income statement information $7,000 420 $ 6,000 160 Net sales Net income Balance sheet information 980 2,720 $ 3,700 $ 3, 300 $1,590 Current assets 930 Property, plant, and equipment (net) 2,370 Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $1,940 930 s00 330 930 500 280 $ 3,700 $ 3,300 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a Profit margin on sales 16. Return on assets 1c. Return on equity %6 2. Dividends paid

(S in thousands) 2020 2021 Income statement information $7,000 420 $ 6,000 160 Net sales Net income Balance sheet information 980 2,720 $ 3,700 $ 3, 300 $1,590 Current assets 930 Property, plant, and equipment (net) 2,370 Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $1,940 930 s00 330 930 500 280 $ 3,700 $ 3,300 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not in thousands. For example, $150,000 rather than 150.) 1a Profit margin on sales 16. Return on assets 1c. Return on equity %6 2. Dividends paid

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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