Question 98Using Financial Statements for 2020, average daily sales for the year 2020 is 1,452.05.TRUE OR FALSE? Balance Sheet2020Income Statement2020AssetsSales$530,000Cash$ 280,000Cost of Goods Sold148,400Accounts Receivable117,600Gross Profit$381,600Inventory89,600Interest Income53,00014,000$ 501,200Prepaid ExpensesTotal Income$434,600Total Current AssetsSales Salaries121,900Fixed Assets33,600Office Salaries26,500Total Assets$ 534,800Office Equipment Rental37,100Liabilities & EquityInterest Expense15,900Accounts Payable$90,916General & Administrative4,770Notes Payable48,132Total Expenses206,170Accrued Expenses42,784Income Before Tax228,430Taxes Payable37,436Income Taxes132,500Deferred Taxes48,132Net Income$95,930Total Current Liabilities$ 267,400Long-Term Notes123,004Total Liabilities$ 390,404Capital Stock53,480Retained Earnings90,916$ 144,396$ 534,800Total EquityTotal Liabilities & Equity

Average daily sales = Annual Sales / Number of days in a year

Answered: Using Financial Statements for 2020,…

Business

Finance

Using Financial Statements for 2020, average daily sales for the year 2020 is 1,452.05. TRUE OR FALSE?

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 5.26MCE

See similar textbooks

Related questions

Q: 3.1 Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to…

A: The gross profit is calculated as difference between sales and cost of goods sold.

Q: Using Financial Statements for 2020, long-term debt to total assets for the year 2020 is 0.23.…

A: Long term debt to total asset is a coverage ratio that gives the long term financial position of the…

Q: Using Financial Statements for 2020, return on equity for the year 2020 is 0.66. TRUE OR FALSE

A: Return on equity = Net Income / Total Equity

Q: How much is the cost of goods sold in 2019?

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: Income Statement For the year ended Dec. 31, 2020.and 202019 2020 2019 P 5,150,000 150,000 5,000,000…

A: The ratio analysis analyzes the financial statements including income statement and balance sheet of…

Q: Calculate the Sales Growth of the most recent year

A: Sales is the revenue which a company has earned during the year by way of providing the services or…

Q: 3- XYZ Co its selected financial statements items are given as following. Total net sales equals to…

A: Note: Here it is assumed that full stop is being used instead of the comma and accordingly the…

Q: Pretax earnings 84 a. What is the profit leverage effect of purchasing in this company? b. What is…

A: Profit Leverage Effect: It is the effect that shows the impact of purchase cost savings on the…

Q: 3. What is the gross profit margin for the company over the years 2020 and 2019 respectively? A)…

A: Here, Net Sales of 2020 is $136,400 Net Sales of 2019 is $138,000 COGS of 2020 is $99,000 COGS of…

Q: What is the company’s gross profit rate beginning January 1, 2020? A. 24% B. 21% C. 17% D. 20%

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: QUESTION 5 REQUIRED 5.1 Use the information provided below to calculate the following ratios for…

A: Financial Statements- Every entity prepares the statement related to assets, liabilities, cash,…

Q: Question 33 If a company purchased an inventory item for $1,200 and can sell it for $2,000 and can…

A: The inventory management will include ordering of goods, storing/holding of goods, work in progress…

Q: 10. Compute for the amount of Revenue from Monthly clients * Berthold Tax Services Income Statement…

A: Expenses represents the amount incurred on the daily operations of the business. These are reported…

Q: 2017-2018 16.92% 2018-2019 19.54% 2019-2020 0.36% 2020 2021 28.93% 2021-2022 -5.17% You have also…

A: Hi, since you have posted a question with multiple sub-parts, we will answer only the first three as…

Q: Q8: What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021 Income…

A: The cost of goods sold is the total amount your company paid as a cost directly related to the sale…

Q: Using Financial Statements for 2018-2019. Net book value for 2018 is $8,025,800. TRUE OR FALSE

A: Net book value or net asset value is the value of asset after adjusting the depreciation charges…

Q: What is the present value of future stream of receipts of $200 per year to be received at end of…

A: present value of the annuity is the value of stream of recurring cashflow discounted to present…

Q: 01/31/2019 01/31/2018 Total Revenue $514,405,000 $500,343,000 Cost of Revenue $385,301,000…

A: Assumptions: i. 365 days have been considered in a year ii.For calculating average figures, figures…

Q: 3. What is the gross profit margin for the company over the years 2020 and 2019 respectively?* O A)…

A: Given: Particulars 2020 2019 Net sales $136,400 $138,000 Cost of goods sold $99,000 $95,000

Q: Sales of P 150,000 in 2021 were recorded as sales of 2022. What would be the adjusting entry if the…

A: Prior period errors are errors occurred in previous period/s but detected in current period. Any…

Q: Exercise 13-3 Computing and interpreting trend percents LO P1 2019 $ 467,857 $ 305,789 $ 237,968 $…

A: The trend ratio analysis is performed to compare the data of current year with previous year data.

Q: Vertical Analysis ABC INDUSTRIES CONSOLIDATED INCOME STATEMENT DECEMBER 31, 2020 2020 2019 Amount P…

A: Vertical analysis of financial statements is a technique in which the relationship between items in…

Q: QUESTION 81 The annual percentage rate of interest on terms 4/8, net 28 is 73%. TRUE OR FALSE?

A: Discount is 4% if we do payment in 8 days

Q: **Assume that in 2018 $300 of COGS was Variable and $200 was fixed. Assuming revenue growth was…

A: Step 1 Revenue growth is the increase (or decrease) in a company’s sales from one period to…

Q: nearest dollar. 1. What is the value on January 1, 2027, of $75,000 deposited on January 1, 2020,…

A: Answer Part a) Future Value = amount invested ×Future value factor (14%,7) =75000 ×(1+14%)^ 7 =75000…

Q: calculate common size INCOME STATEMENT 2021 2022 Total sales Cost of goods sold Administrative…

A: Common Size balance sheet and common size income statement are a statement which shows numerical…

Q: Barry's Burgers reported net sales of: 2019 $300,000 2020 $330,000 2021 $360,000 If 2019 is the base…

A: Sales is the revenue generated from the regular business operation of the company. The horizontal…

Q: 4. Calculate the current ratio for Pearson & Litt for 2019. 5. Explain the results of the…

A: The current ratio is a liquidity ratio that dictates that how much company is able to pay their…

Q: 2018 2019 2020 2021 Revenue net income Revenue Net income…

A: Horizontal analysis refers to comparison of items of financial statements as the preceding year or…

Q: BE18.8 (LO 2) Vertical analysis (common-size) percentages for Palau Company's sales goods sold, and…

A: Vertical analysis refers to the comparison of items in two or more years. The percentage of each…

Q: Table 3.5 presents a computer spreadsheet for estimating R&E Supplies’ external financing…

A: Note: Since growth rate for sales is not provided, 2 scenarios are considered and since only excel…

Q: 19. The heading of income statement might include the line "As of December 31, 2020". True False

A: Income statement is the statement that records all the income and expenses of the company and helps…

Q: Additional Information: (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to…

A: While preparing an income statement, we can use ratio analysis to find out the missing figures. For…

Q: 2020 2019 (dollars in millions) $ 37,580 2,231 1,318 $33,075 1,283 Net sales Earnings before taxes…

A: Solution:- Computation of Vertical and Horizontal analysis from the above information as follows:-

Q: hat is the gross profit for 2020

A: Solution: Total cost of Job 101 = Job 101 Cost in process on January 1 + Costs added for Job 101 =…

Q: 2021 2020 2019 2018 2017 $ 394,032 199,466 19,071 $ 262,688 132,894 15,394 $ 205,225 106,013 14,058…

A: The net sales are the revenue that is presented in the income statement of the company. The trend is…

Q: Several of Kimper Corporation's major customers experienced cash flow problems in 2020, mainly due…

A: Accounts receivable turnover is an activity ratio. It denotes the quality of accounts receivable and…

Q: A. Calculate the gross profit margin for Pearson and litt for 2020 B. Explain the results of the…

A: Gross profit is the profit generated after deducting direct expenses related to the goods from the…

Q: Required: 30. What is the amount of sales from January 1, 2021 to April 30, 2021? 31. What is the…

A: The accounting method of minimizing the value of inventory that has lost all of its value is known…

Q: Using Financial Statements for 2020, times interest earned for the year 2020 is 15.37. TRUE OR…

A: Times Interest earned ratio = Earnings before interest and taxes / Interest Expenses

Q: 47. Halal Berhad’s comparative financial statements for the years ending 31 December 2020, and 2019,…

A: Quick Ratio: It is a liquidity ratio and shows company's ability to use quick assets to retire its…

Q: Using Financial Statements for 2020, debt equity ratio for the year 2020 is 2.30.

A: Debt to Equity ratio = Debt / Equity where Debt = long term debt Equity = Total equity

Q: Using Financial Statements for 2020, sales to working capital for the year 2020 is 2.41. True or…

A: Working capital is the difference between a company's current assets and current liabilities.…

Q: Upon the study of the SFP For the year ended December 31, 2020. Q1. What is the total amount of…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Using Financial Statements for 2020, sales to total assets for the year 2020 is 0.99. TRUE OR…

A: Sales to Assets: It is the ratio that measures the company's ability to generate sales from the…

Q: sing Financial Statements for 2020, debt ratio for the year 2020 is 0.33.

A: Debt Ratio: It is the ratio that shows the extent to which the company has leverage. A higher debt…

Q: b. Percentage Change is calculated with the formula (30th June 2021 Value/30th June 2020 Value) - 1…

A: Solution:- Percentage change means the rate of change in values. Now, as per given information,…

Q: Q.9 KARA Corporation's CFO uses this equation, which was developed by regressing inventories on…

A: Inventory refers to the stocks held by businesses for further production or sale purpose.

Question

Question 98

Using Financial Statements for 2020, average daily sales for the year 2020 is 1,452.05.

TRUE OR FALSE?

Balance Sheet
2020
Income Statement
2020
Assets
Sales
$
530,000
Cash
$ 280,000
Cost of Goods Sold
148,400
Accounts Receivable
117,600
Gross Profit
$
381,600
Inventory
89,600
Interest Income
53,000
14,000
$ 501,200
Prepaid Expenses
Total Income
$
434,600
Total Current Assets
Sales Salaries
121,900
Fixed Assets
33,600
Office Salaries
26,500
Total Assets
$ 534,800
Office Equipment Rental
37,100
Liabilities & Equity
Interest Expense
15,900
Accounts Payable
$
90,916
General & Administrative
4,770
Notes Payable
48,132
Total Expenses
206,170
Accrued Expenses
42,784
Income Before Tax
228,430
Taxes Payable
37,436
Income Taxes
132,500
Deferred Taxes
48,132
Net Income
$
95,930
Total Current Liabilities
$ 267,400
Long-Term Notes
123,004
Total Liabilities
$ 390,404
Capital Stock
53,480
Retained Earnings
90,916
$ 144,396
$ 534,800
Total Equity
Total Liabilities & Equity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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%.
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Return on total assets
Profitability ratios The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: December31 2016 2015 2014 Total assets......................................... 4,800,000 4,400,000 4,000,000 Notes payable (8% interest)........................... 2,250,000 2,250,000 2,250,000 Common stock...................................... 250,000 250,000 250,000 Preferred 4% stock, 100 par (no change during year)........................... 500,000 500,000 500,000 Retained earnings................................... 1,574,000 1,222,000 750,000 The 2016 net income was 372,000, and the 2015 net income was 492,000. No dividends on common stock were declared between 2014 and 2016. a. Determine the rate earned on total assets, the rate earned on stockholders equity, and the rate earned on common Stockholders equity for the years 2015 and 2016. Round to one decimal place. b. What conclusions can be drawn from these data as to the companys profitability?
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Days’ sale in receivable
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.
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Inventory turnover
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover
THE ATHLETIC ATTICIncome StatementFor the Year Ended December 31, 2024Net sales $8,900,000Cost of goods sold 5,450,000Gross profit 3,450,000Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000Net income $1,230,000 THE ATHLETIC ATTICBalance SheetsDecember 31 2024 2023Assets Current assets: Cash $164,000 Accounts receivable 790,000 Inventory 1,405,000 Supplies 110,000Long-term assets: Equipment 1,150,000 Less: Accumulated depreciation (420,000) Total assets $3,199,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $115,000 Interest payable 0 Income tax payable 40,000 Long-term liabilities: Notes payable 600,000 Stockholders' equity: Common stock 700,000…
Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
Line Item Description 20X1 20X2 Current assets: Accounts receivable $750,000 $582,500 Inventories 300,000 320,000 Current liabilities: Wages payable 700,000 515,000 Davis CompanyIncome StatementFor the Year Ended December 31, 20X2 Line Item Description Amount Amount Revenues $3,000,000 Cost of goods sold 1,920,000 Gross margin $1,080,000 Operating expenses Depreciation 270,000 Operating income $ 810,000 Other revenues and expenses Gain on sale of equipment 100,000 Interest expense 10,000 90,000 Net income $ 900,000 Required: Compute operating cash flows using the indirect method.
QUESTION 1The following are extracts of the income statement and the statement of financial position forMorula Industries.STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2019PulaSales 500,000Less Cost of sales:Opening inventory 120,000Purchases 415,000Cost of goods available for sale 535,000Closing inventory (115,000) (420,000)Gross profit 80,000Operating expenses (40,000)Net surplus for the year 40,000 STAMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019PulaCurrent assetsInventory 115,000Receivables 133,000Bank overdraft 124,000Current LiabilitiesPayables 96,000Capital and reservesShare capital 70,000General reserve 110,000Retained profit 110,000Additional Information The receivables and payables opening balances were P50, 000 each. All sales and purchases were made on credit.Required:a. Calculate the:i. Average payment period. ii. Average age of inventory. iii. Average collection period. iv. Cash conversion cycle. b. Explain five strategies that can improve the cash conversion…
SUNLAND COMPANYIncome StatementsFor the Years Ended December 31 2022 2021 Net sales $2,178,400 $2,030,000 Cost of goods sold 1,207,000 1,187,080 Gross profit 971,400 842,920 Selling and administrative expenses 590,000 565,220 Income from operations 381,400 277,700 Other expenses and losses Interest expense 25,960 23,600 Income before income taxes 355,440 254,100 Income tax expense 106,632 76,230 Net income $ 248,808 $ 177,870 SUNLAND COMPANYBalance SheetsDecember 31 Assets 2022 2021 Current assets Cash $ 70,918 $ 75,756 Debt investments (short-term) 87,320 59,000 Accounts receivable 139,004 121,304 Inventory 148,680 136,290 Total current assets 445,922 392,350 Plant assets (net) 765,820 613,954 Total assets $1,211,742…