GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 5, Problem 5.4CP
1.
To determine
Compute the gross margin on sales of Corporation G.
2.
To determine
Compute the amount of earnings per share.
3.
To determine
Compute the amount of pretax income if the income tax rate is 25%.
4.
To determine
Compute the average sales price per share of stock.
5.
To determine
Compute the amount of beginning balance (January 1, 2015) of
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Computing Activity Ratios
Selected balance sheet and income statement information follows for R.A. Corporation.
R.A. Corporation
$ millions
April 2, 2020
March 28, 2019
Income statement information:
Sales
$20,967
$22,353
Cost of goods sold
9,654
9,726
Balance sheet information:
Accounts receivable, gross
2,313
2,718
Inventory
3,375
3,126
Accounts payable
468
630
Required
Compute the following ratios for its fiscal year ended April 2, 2020.
Round your answers to two decimal places (for example, enter 20.46 for 20.4555558).
a. Accounts receivable turnover
Answer
b. Average days to collect receivables
Answer
c. Inventory turnover
Answer
d. Average days in inventory
Answer
e. Accounts payable turnover
Answer
f. Average days payable outstanding
Answer
g. Cash conversion cycle
Answer
Selected comparative financial statements of Korbin
Company follow.
Comparative
Income Statements
For Years Ended December 31
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
KORBIN COMPANY
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
KORBIN COMPANY
Comparative Balance Sheets
Liabilities and Equity
Current liabilities
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
2021
2020
2019
$ 483,981 $ 370,769 $ 257,300
291,357
234,326
164,672
192,624
136,443
92,628
68,725
33,964
43,558
21,356
112,283
80,341
14,943
$ 65,398 $ 41,856
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
December 31
2021
$ 57,843
0
51,166
32,628
83,794
52,649
10,793
$ 23,890
66,000
$ 20,253
Common stock
66,000
Other paid-in capital
8,250
Retained earnings
41,423
Total liabilities and equity $…
The following information is available for Sunland Corporation for the year ended December 31, 2022: sales revenue $840,000, other
revenues and gains $91,000, operating expenses $101,000, cost of goods sold $466,000, other expenses and losses $30,500, and
preferred stock dividends $40,950. The company's tax rate was 20%, and it had 70,000 common shares outstanding during the entire
year.
(a)
Your Answer Correct Answer
Your answer is partially correct.
Prepare a corporate income statement. (List other revenues before other expenses.)
Chapter 5 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Explain what a material amount is.Ch. 5 - What basis of accounting (cash or accrual) does...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - For property, plant, and equipment, as reported on...
Ch. 5 - Briefly explain the major classifications of...Ch. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - If average total assets increase, but net income,...Ch. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - Prob. 8MCQCh. 5 - Prob. 9MCQCh. 5 - Prob. 10MCQCh. 5 - Prob. 5.1MECh. 5 - Prob. 5.2MECh. 5 - Prob. 5.3MECh. 5 - Prob. 5.4MECh. 5 - Determining Financial Statement Effects of Sales...Ch. 5 - Prob. 5.6MECh. 5 - Prob. 5.7MECh. 5 - Matching Players in the Accounting Communication...Ch. 5 - Prob. 5.2ECh. 5 - Finding Financial Information: Matching...Ch. 5 - Prob. 5.4ECh. 5 - Preparing a Classified Balance Sheet Campbell Soup...Ch. 5 - Prob. 5.6ECh. 5 - Preparing a Classified (Multiple-Step) Income...Ch. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Stock Issuances and the Statement of Stockholders...Ch. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Matching Transactions with Concepts Following are...Ch. 5 - Matching Definitions with Balance Sheet-Related...Ch. 5 - Prob. 5.3PCh. 5 - Prob. 5.4PCh. 5 - Preparing a Classified (Multiple-Step) Income...Ch. 5 - Prob. 5.6PCh. 5 - Determining and Interpreting the Effects of...Ch. 5 - Determining the Effects of Transactions on Ratios...Ch. 5 - Prob. 5.9PCh. 5 - Prob. 5.1APCh. 5 - Preparing a Statement of Stockholders' Equity...Ch. 5 - Prob. 5.3APCh. 5 - Prob. 5.4APCh. 5 - Evaluating the Impact of Transactions on Statement...Ch. 5 - Prob. 5.2CONCh. 5 - Finding Financial Information Refer to the...Ch. 5 - Finding Financial Information Refer to the...Ch. 5 - Prob. 5.3CPCh. 5 - Prob. 5.4CPCh. 5 - Prob. 5.5CPCh. 5 - Prob. 5.6CPCh. 5 - Prob. 5.7CP
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- Real-world annual report The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2017, and May 31, 2016. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory' h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets, assuming interest expense is 82 million for the year ending May 31. 2017, and 33 million for the year ending May 31, 2016. k. k. Return on common stockholders equity l. Price-eamings ratio, assuming that the market price was 52.81 per share on May 31, 2017, and 54.35 per share on May 31, 2016. m. m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?arrow_forwardSelected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales. Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments. Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities. 2021 2020 2019 $ 483,981 $ 370,769 $ 257,300 291,357 234,326 164,672 192,624 136,443 92,628 68,725 51,166 43,558 32,628 112,283 83,794 80,341 52,649 14,943 10,793 $ 65,398 $ 41,856 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 2021 S % $ 57,843 0 KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2021, 2020, and 2019 2021…arrow_forwardThe income statement of Tavis Corporation and selected additional data are presented below: Tavis Corporation Income Statement for the Year Ended December 31, 2020 Net sales $220,000 Cost of goods sold __109,000 Gross profit 111,000 Selling and general expenses _98,000 Income from operations 13,000 Interest expense __2,500 Income before income tax 10,500 Income tax expense __3,000 Net income $ 7,500 Additional data: Total assets $214,000 Common stockholders’ equity $116,000 Preferred dividends…arrow_forward
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