Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
5th Edition
ISBN: 9780134642093
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 14, Problem 14.21AE

a.

To determine

To calculate: Inventory turnover for the year 2017 of firm FC and interpret the results.

b.

To determine

To calculate: Days’ sales in receivables for the year 2017 of firm FC and interpret the results.

c.

To determine

To calculate: Acid-test ratio for the year 2017 of firm FC and interpret the results.

d.

To determine

To calculate: Times-interest-earned ratio for the year 2017 of firm FC and interpret the results.

e.

To determine

To calculate: Gross profit percentage for the year 2017 of firm FC and interpret the results.

f.

To determine

To calculate: Operating income percentage for the year 2017 of firm FC and interpret the results.

g.

To determine

To calculate: Return on stockholders’ equity for the year 2017 of firm FC and interpret the results.

h.

To determine

To calculate: Earnings per share for the year 2017 of firm FC and interpret the results.

i.

To determine

To calculate: Price/earnings ratio for the year 2017 of firm FC and interpret the results.

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(Learning Objectives 4, 5: Apply GAAP for receivables and uncollectiblereceivables) Suppose Easton, Inc., reported net receivables of $2,582 million and $2,260 millionat January 31, 2019, and 2018, respectively, after subtracting allowances of $72 million and $67million at these respective dates. Easton earned total revenue of $43,333 million (all on account)and recorded uncollectible-account expense of $13 million for the year ended January 31, 2019.Requirement1. Use this information to measure the following amounts for the year ended January 31, 2019:a. Write-offs of uncollectible receivables b. Collections from customers
Given below are selected balance sheet items and ratios as of June 30, 2019 for the More Debits than Credits School of Accounting which issues erasers instead of diplomas to its graduates. Total stockholders’ equity (includes 100,00 shares of             no par common stock issued at $6 per share)                                            $1,000,000 Plant and equipment (net)                                                                                                470,000 Asset Turnover rate per year (sales/total assets)                                                            3 times Inventory turnover rate per year                                                                                        6 times Gross profit percentage                                                                                                        30% Ratio of current liabilities to stockholders’ equity         (there is no long term debt)…
(Learning Objective 7: Calculate return on assets) Handley Grocery Corporationreported the following information in its comparative financial statements for the fiscal yearended January 31, 2018:January 31,2018January 31,2017Net sales....................................Net earnings..............................Average total assets...................$50,000$ 2,200$40,000$48,350$ 2,100$39,300Requirements1. Compute the net profit margin ratio for the years ended January 31, 2018, and 2017. Did itimprove or worsen in 2018?2. Compute asset turnover for the years ended January 31, 2018, and 2017. Did it improve orworsen in 2018?3. Compute return on assets for the years ended January 31, 2018, and 2017. Did it improveor worsen in 2018? Which component—net profit margin ratio or asset turnover—wasmostly responsible for the change in the company’s return on assets?

Chapter 14 Solutions

Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)

Ch. 14 - Prob. 14.1SECh. 14 - Find trend percentages (Learning Objective 1)...Ch. 14 - Prob. 14.3SECh. 14 - Prepare common-size income statements (Learning...Ch. 14 - Analyze common-size income statements (Learning...Ch. 14 - Cartwrights Data Set used for S14-6 through...Ch. 14 - Cartwrights Data Set used for S14-6 through...Ch. 14 - Cartwrights Data Set used for S14-6 through...Ch. 14 - Prob. 14.9SECh. 14 - Prob. 14.10SECh. 14 - Prob. 14.11SECh. 14 - Prob. 14.12AECh. 14 - Prob. 14.13AECh. 14 - Prob. 14.14AECh. 14 - Prob. 14.15AECh. 14 - Prob. 14.16AECh. 14 - Calculate ratios (Learning Objective 4) Kelleher...Ch. 14 - Prob. 14.18AECh. 14 - Prob. 14.19AECh. 14 - Prob. 14.20AECh. 14 - Prob. 14.21AECh. 14 - Classify company sustainability measurements into...Ch. 14 - Prob. 14.23BECh. 14 - Prob. 14.24BECh. 14 - Prob. 14.25BECh. 14 - Prob. 14.26BECh. 14 - Prob. 14.27BECh. 14 - Calculate ratios (Learning Objective 4) Ponderosa...Ch. 14 - Prob. 14.29BECh. 14 - Prob. 14.30BECh. 14 - Prob. 14.31BECh. 14 - Calculate ratios (Learning Objective 4) Thornton...Ch. 14 - Prob. 14.33BECh. 14 - Prob. 14.34APCh. 14 - Comprehensive analysis (Learning Objectives 2, 3, ...Ch. 14 - Prob. 14.36APCh. 14 - Ratio analysis over two years (Learning Objective...Ch. 14 - Prob. 14.38APCh. 14 - Prob. 14.39BPCh. 14 - Prob. 14.40BPCh. 14 - Prob. 14.41BPCh. 14 - Ratio analysis over two years (Learning Objective...Ch. 14 - Make an investment decision (Learning Objective 4)...Ch. 14 - Prob. 14.44SCCh. 14 - Discussion Questions 1. Describe horizontal...Ch. 14 - Prob. 14.47ACTCh. 14 - Using financial statement ratios to analyze...
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