Expenses:
The cost that is incurred during business is called business expenses. To earn revenue, some expenses are to be paid. Expense may be operating expenses or non operating expense.
Liabilities:
Liabilities are generally the amount owned by the company from lenders, suppliers, or bank. Liabilities are the burden on the company that they have to pay to others.
Equity:
A company needs finance to run the business. Equity is one of the method through which the company raise the capital.
Return on Assets:
The return on assets is the return earned on the amount invested in assets. The return on assets is also known as the return on investment. In getting income individual or company will invest money; the ultimate aim is to earn a good return on the amount invested.
1.
To compute: Return on assets of K manufactures.
2.
To explain: The comparison with competitors.
3.
To compute: The total expenses of K manufacture.
4.
The average total amount of liabilities and equity of K manufactures.
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Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
- Brief Exercise 1-26 Income Statement An analysis of the transactions of Rutherford Company for the year ended December 31, yields the following information: sales revenue, $65,000; insurance expense, $4,300; interest income, $3,900; cost of goods sold, $28,800; and loss on disposal of property, plant, and equipment, $1,200. Required: Prepare a single income statement.arrow_forwardReturn on assets Tiffany & Co. (TIF) designs and sells jewelry including rings, watches, and necklaces throughout the world. The folk wing data (in millions) n taken from recent financial statements of Tiffany: Compute the return on assets for Tiffany using the preceding data. Round to one decimal place.arrow_forwardBrief Exercise 1-24 The Accounting Equation Financial information for three independent cases is as follows: The liabilities of Dent Company are $82,000, and its stockholders' equity is $120,000. What is the amount of Dents total assets? The total assets of Wayne Inc. are $55,000, and its stockholders' equity is $22,500. What is the amount of Waynes total liabilities? Gordon Companys total assets increased by $60,000 during the year, and its liabilities decreased by $35,000. Did Gordons stockholders' equity increase or decrease? By how much? Required: Determine the missing amount for each case.arrow_forward
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- A2 1 d Use the following information for Delta Corporation to answer question 1: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will…arrow_forwardProblem 2-05A b (Essay) The following are financial statements of Ohara Company. Ohara CompanyIncome StatementFor the Year Ended December 31, 2022 Net sales  $2,218,500 Cost of goods sold  1,012,400 Selling and administrative expenses  906,000 Interest expense  78,000 Income tax expense  69,000 Net income  $ 153,100 Ohara CompanyBalance SheetDecember 31, 2022 Assets   Current assets     Cash  $ 60,100   Debt investments  84,000   Accounts receivable (net)  169,800   Inventory  145,000    Total current assets  458,900 Plant assets (net)  575,300 Total assets  $ 1,034,200 Liabilities and Stockholders’ Equity   Current liabilities     Accounts payable  $ 160,000   Income taxes payable  35,500    Total current liabilities  195,500 Bonds payable  200,000    Total liabilities  395,500 Stockholders’ equity     Common stock  350,000   Retained earnings…arrow_forwardAccounting QUESTION 3 BJs Ltd manufactures products that are used in the construction industry. The company has been successful in the management of its working capital and liquidity. However, 2020 has been different. Calculate the working capital and liquidity ratios for BJs Ltd given the following financial information The following is an extract of the trading account in the income statement:  2020 2019  R'000 R'000 Sales 2,065 1,789 Cost of sales (1,479) (1,304) Gross profit 586 485 Extract Statement From financial position Assets 2020 2019  R'000 R'000 Current Assets   Inventory 119 109 Debtors (refer to note1) 401 347 Short term investments 4 19 Cash 48 48  572 523 EQUITY AND LIABILITIES   Noncurrent liabilities 49 35 Taxes 62 47 Dividend 19 14 Creditors (refer to note 2) 371 324  501 420 Net current assets 71 103 Notes   1. Ammount of trades receivable in debtors amount 330 285 2.Amount of trades payables in…arrow_forward
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