FINANCIAL ACCOUNTING W/ACCESS >CI<
2nd Edition
ISBN: 9781259999024
Author: SPICELAND
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12.9E
1. a.
To determine
To calculate: The Gross profit ratio.
1. b.
To determine
To calculate: The return on assets ratio.
1. c.
To determine
To calculate: The profit Margin Ratio.
1. d.
To determine
To calculate: The asset turnover ratio.
e.
To determine
To calculate: The Return on equity ratio.
2.
To determine
The amount of dividends paid to the shareholders in 2018.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions. Income Statement Total Sales213.8 Cost of Sales151.3 Gross Profit213.8-151.3 Selling and Administrative Expenses22.3 Research and Development 7.7 Depreciation and Amortization4.5 Other Income2.4 EBIT213.8-151.3-22.3-7.7-4.5+2.4 Interest Expense5.8 Pretax Income213.8-151.3-22.3-7.7-4.5+2.4-5.8 Taxes( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.30 Net Income( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.70 Balance Sheet Assets Liabilities Cash65.8Accounts Payable43.3Accounts Receivable54.4Notes Payable/Short term debt1.6Inventories4.4 Total Current Assets65.8+54.4+4.4Total Current Liabilities43.3+1.6 Net property, plant and equipment103.4Long-term debt80.0Total long-term assets103.4Total long-term debt liabilities80.0 Total Liabilities43.3+1.6+80.0 Stockholders' Equity (Total Equity)65.8+ 54.4+4.4+103.4-43.3-1.6-80.0Total…
Coleman, Inc. provides the following data from its Income Statement for 2018:
Net Sales
$ 560,000.00
Cost of Goods Sold
$ (160,000.00)
Gross Profit
$ 400,000.00
Calculate the gross profit percentage. (round your answer to two decimal places)
A
71.43%
B
25.00%
C
100.00%
D
28.57%
The following condensed information is reported by Beany Baby Collectibles.
2024
2023
Income Statement Information
Sales revenue
$13,020,000
$9,000,000
Cost of goods sold
8,436,960
6,500,000
Net income
394,320
308,000
Balance Sheet Information
Current assets
$1,660,000
$1,560,000
Long-term assets
2,260,000
1,960,000
Total assets
$3,920,000
$3,520,000
Current liabilities
$1,260,000
$960,000
Long-term liabilities
1,440,000
1,440,000
Common stock
860,000
860,000
Retained earnings
360,000
260,000
Total liabilities and stockholders' equity
$3,920,000
$3,520,000
Chapter 12 Solutions
FINANCIAL ACCOUNTING W/ACCESS >CI<
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - 5.In performing horizontal analysis, why is it...Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 20RQCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Prob. 12.5BECh. 12 - Universal Sports Supply began the year with an...Ch. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Prob. 12.11BECh. 12 - Prob. 12.12BECh. 12 - Prob. 12.13BECh. 12 - Classify each of the following accounting...Ch. 12 - Classify each of the following accepted accounting...Ch. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Refer to the information for Adrian Express in...Ch. 12 - Prob. 12.7ECh. 12 - Calculate profitability ratios (LO124) Refer to...Ch. 12 - Prob. 12.9ECh. 12 - The income statement for Stretch-Tape Corporation...Ch. 12 - Prob. 12.11ECh. 12 - LeBrons Bookstores has two divisions, books and...Ch. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Distinguish between conservative and aggressive...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.4APCh. 12 - Prob. 12.5APCh. 12 - Prob. 12.6APCh. 12 - Game-On Sports operates in two distinct segments:...Ch. 12 - Prob. 12.2BPCh. 12 - Prob. 12.3BPCh. 12 - Prob. 12.4BPCh. 12 - Prob. 12.5BPCh. 12 - Prob. 12.6BPCh. 12 - Prob. 12.1APCPCh. 12 - Prob. 12.2APFACh. 12 - Prob. 12.3APFACh. 12 - Prob. 12.4APCACh. 12 - Prob. 12.5APECh. 12 - Prob. 12.7APWCCh. 12 - Prob. 12.8APEM
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Prepare a horizontal analysis of the following excerpt of an income statement. Eye Witness Security GmbH Income Statement 2012 2011 Net sales €540.400 €573.000 Cost of goods sold 130.300 165.800 Gross profit (loss) 410.100 407.200 Operating expenses 264.900 205.100 Net income (loss) €145.200 €202.100arrow_forwardUse the following information to answer this question. Bayside, Inc.2017 Income Statement($ in thousands) Net sales $ 6,040 Cost of goods sold 4,200 Depreciation 400 Earnings before interest and taxes $ 1,440 Interest paid 30 Taxable income $ 1,410 Taxes 423 Net income $ 987 Bayside, Inc.2016 and 2017 Balance Sheets($ in thousands) 2016 2017 2016 2017 Cash $ 115 $ 220 Accounts payable $ 1,580 $ 1,510 Accounts rec. 990 830 Long-term debt 810 610 Inventory 1,705 2,040 Common stock 3,240 3,280 Total $ 2,810 $ 3,090 Retained earnings 880 1,130 Net fixed assets 3,700 3,440 Total assets $ 6,510 $ 6,530 Total liab. & equity $ 6,510 $ 6,530 What is the return on equity for 2017?arrow_forwardRussell Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Russell Industry Average Net sales revenue $780,000 100.0 % Cost of goods sold 524,940 65.8 Gross Profit 255,060 34.2 Operating Expenses 162,240 19.7 Operating Income 92,820 14.5 Other Expenses 7,800 0.4 Net Income 85,020 14.1 % MORE INFO: Russell/industry average Total Assets $480,000 100.0 % total Liabilities 327,360 64.7 total Liabilities and Stockholders' Equity $480,000 100.0 % SOLVE for % of total (round total to one decimal place x.x%) Amount Percent of total Net Sales Revenue 780,000 Cost of goods sold 524,940 gross profit 255,060 operating expenses 162240 operating income 92820 other expenses 7800arrow_forward
- Fairplay had the following information related to the sale of its products during 2009, which was its fi rst year of business: Revenue $1,000,000 Returns of goods sold $ 100,000 Cash collected $ 800,000 Cost of goods sold $ 700,000 Under the accrual basis of accounting, how much net revenue would be reported on Fairplay’s 2009 income statement? B . $900,000.arrow_forwardGiven below are the Statements of Financial Position and the Statement of Profit or Loss for BA107 Trading Bhd: 2020 (RM) Sales 505,000 Cost of sales (105,000) Gross profit 400,000 Expenses (252,000) Profit before tax 148,000 Taxation (40,000) Profit after tax 108,000 2020 2019 (RM) (RM) Property, plant and equipment 355,000 300,000 Trade receivables 80,000 75,000 Inventory 145,000 120,000 Bank balance 24,500 15,000 604,500…arrow_forwardCASE4: Sally Manufacturing company had sales totaling $40,000,000 in fiscal year 2020. Some ratios for the company are listed below. Use this information to determine the $ value of various income statement and balance sheet accounts as required. Sally Manufacturing Company Year ended December 31, 2020 Gross profit margin 80% Operating profit margin 35% Net profit margin 8% Return on assets 16% Return on equity 20% Total asset turnover 2 Average collection period 62.2 days Calculate values and discuss for the following: Gross profits Cost of goods sold Operating profits Earnings available for common stockholders Total assets Account receivablearrow_forward
- Fairplay had the following information related to the sale of its products during 2009, which was its fi rst year of business: Revenue $1,000,000 Returns of goods sold $ 100,000 Cash collected $ 800,000 Cost of goods sold $ 700,000 Under the accrual basis of accounting, how much net revenue would be reported on Fairplay’s 2009 income statement? A . $200,000.arrow_forwardThe following condensed information is reported by Sporting Collectibles. 2021 2020 Income Statement Information Sales revenue $ 7,224,000 $ 7,600,000 Cost of goods sold 4,782,288 5,100,000 Net income 316,480 168,000 Balance Sheet Information Current assets $ 1,520,000 $ 1,420,000 Long-term assets 2,120,000 1,820,000 Total assets $ 3,640,000 $ 3,240,000 Current liabilities $ 1,120,000 $ 820,000 Long-term liabilities 1,580,000 1,580,000 Common stock 720,000 720,000 Retained earnings 220,000 120,000 Total liabilities and stockholders' equity $ 3,640,000 $ 3,240,000 Required:1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders in 2021.arrow_forwardUse the following information to answer this question. Windswept, Inc.2017 Income Statement($ in millions) Net sales $ 9,000 Cost of goods sold 7,350 Depreciation 360 Earnings before interest and taxes $ 1,290 Interest paid 87 Taxable income $ 1,203 Taxes 421 Net income $ 782 Windswept, Inc.2016 and 2017 Balance Sheets($ in millions) 2016 2017 2016 2017 Cash $ 160 $ 190 Accounts payable $ 1,150 $ 1,332 Accounts rec. 840 740 Long-term debt 1,000 1,233 Inventory 1,570 1,565 Common stock 3,190 2,910 Total $ 2,570 $ 2,495 Retained earnings 470 720 Net fixed assets 3,240 3,700 Total assets $ 5,810 $ 6,195 Total liab. & equity $ 5,810 $ 6,195 What is the equity multiplier for 2017?arrow_forward
- The income statements of Cullumber Corporation show the following amounts: 2020 2019 2018 Net sales $740 $710 $660 Cost of goods sold 540 509 449 Gross profit 200 201 211 Selling, general, and administrative expenses 190 150 110 Profit before tax 10 51 101 Using vertical (common-size) analysis, analyze Cullumber Corporation’s declining profit before tax. (Round answers to 0 decimal places, e.g. 52%.) 2020 2019 2018 Net sales % % % Cost of goods sold % % % Gross profit % % % Selling, general, and administrative expenses % % % Profit before tax % % %arrow_forwardIn 2O2O Coca Cola reported net operating revenues of P18.2 billion and cost of goods sold for P0.8 billion. Their gross profit percentage for 2020 was ____.arrow_forwardComparative income statement for Deep Sea Company for 2016 and 2015 are given below 2016 ( in $) 2015 ( in $) Revenue 1123420 876530 Cost of Goods Sold 635780 458790 Gross Profit 487640 417740 Selling and general Expense 156870 110980 Operating Profit 330770 306760 Interest Expense 45890 40980 Income Before Tax 284880 265780 Income Tax expenses 97650 82340 Net Profit 187230 183440 Prepare the common size income statement of Deep Sea Company for 2016 and 2015. Enter the numbers without decimals. Do not round off the numbers. Add % sign after the numbers.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License