GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
4th Edition
ISBN: 9781260087376
Author: M. David Haddock Jr. Professor
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 13, Problem 18DQ
Gomez Company had a
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Earnings per share (EPS) is an accounting ratio used to indicate the profitability of a company. In 2018, Alita's Company had an EPS of 1.25. However, in 2019, the EPS was 0.54. What does this fall in EPS indicate? Also, comment on the performance of the company.
The following financial information is for Cullumber Company.
CULLUMBER COMPANY
Balance Sheets
December 31
Assets
2022
2021
Cash
$ 70,000
$64,000
Debt investments (short-term)
53,000
39,000
Accounts receivable
108,000
90,000
Inventory
229,000
162,000
Prepaid expenses
30,000
25,000
Land
130,000
130,000
Building and equipment (net)
264,000
185,000
Total assets
$884,000
$695,000
Liabilities and Stockholders' Equity
Notes payable
$172,000
$102,000
Accounts payable
65,000
51,000
Accrued liabilities
41,000
41,000
Bonds payable, due 2025
250,000
172,000
Common stock, $10 par
202,000
202,000
Retained earnings
154,000
127,000
Total liabilities and stockholders' equity
$884,000
$695,000
CULLUMBER COMPANY
Income Statements
For the Years Ended December 31
2022
2021
Sales revenue
$890,000
$786,000
Cost of goods sold
641,000
575,000
Gross profit
249,000
211,000
Operating expenses
194,000
159,000
$ 5000
$ 52,000
Net income
Additional information:
Inventory at the beginning of 2021 was $116,000.
1.
2.…
a) Evaluate the company’s liquidity and financial flexibility by calculating and analysing the following ratios for 2019.
(i) Current ratio at December 31.
(ii) Acid-test ratio at December 31.
(iii)Accounts receivable turnover.
(iv) Inventory turnover.
(v) Return on assets.
(vi) Profit margin on sales.
Chapter 13 Solutions
GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
Ch. 13 - Why are financial statements prepared in...Ch. 13 - What is the distinction between current...Ch. 13 - Prob. 1.3SRQCh. 13 - Which of the following is not a current asset? a....Ch. 13 - How should purchases returns and allowances be...Ch. 13 - Assume that a business listed the Freight In...Ch. 13 - Why do adjusting entries need detailed...Ch. 13 - Which adjusting entries should be reversed?Ch. 13 - Prob. 2.3SRQCh. 13 - A reversing entry is made for an end-of-period...
Ch. 13 - Prob. 2.5SRECh. 13 - At the end of the previous accounting period, an...Ch. 13 - Prob. 1CSRCh. 13 - Prob. 2CSRCh. 13 - Prob. 3CSRCh. 13 - Prob. 4CSRCh. 13 - Which of the following should have a debit balance...Ch. 13 - Prob. 6CSRCh. 13 - Prob. 7CSRCh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - What are operating expenses?Ch. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Gomez Company had a current ratio of 2.0 in 2018...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - The worksheet of Bridgets Office Supplies contains...Ch. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - The Adjusted Trial Balance section of the...Ch. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Superior Hardwood Company distributes hardwood...Ch. 13 - Good to Go Auto Products distributes automobile...Ch. 13 - Obtain all data necessary from the worksheet...Ch. 13 - Obtain all data that is necessary from the...Ch. 13 - Prob. 5PACh. 13 - ComputerGeeks.com is a retail store that sells...Ch. 13 - Hog Wild is a retail firm that sells motorcycles,...Ch. 13 - Prob. 3PBCh. 13 - Prob. 4PBCh. 13 - The data below concerns adjustments to be made at...Ch. 13 - Programs Plus is a retail firm that sells computer...Ch. 13 - Teagan Fitzgerald is the owner of Newport Jewelry,...Ch. 13 - Prob. 1MFCh. 13 - Spectrum Company had an increase in sales and net...Ch. 13 - Prob. 3MFCh. 13 - Prob. 4MFCh. 13 - Prob. 5MFCh. 13 - Prob. 6MFCh. 13 - Prob. 7MFCh. 13 - It is standard accounting procedures, or GAAP, to...Ch. 13 - McCormick Company, Incorporated, is a global...Ch. 13 - The Fashion Rack is a retail merchandising...
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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License