Chapter 7, Problem 12E

Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.

FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 596597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory

Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement panels. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be?     2. If Biblio Files Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be?     3. What would explain the difference between your answers for (1) and (2)? The answers are not different; each company has the same required sales amount for the coming year to achieve the desired target profit.   The companies have goals that are not in the relevant range.   Biblio Files Company has a higher contribution margin ratio, and so more of each sales dollar is…

Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions).   Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $61,471 $374,526 Cost of goods sold 41,895 286,515 Selling and administrative expenses 16,200 70,847 Interest expense 647 1,798 Other income (expense) 1,896 4,273 Income tax expense 1,776 6,908 Net income $2,849 $12,731 Balance Sheet Data (End of Year) Current assets $18,906 $47,585 Noncurrent assets 25,654 115,929 Total assets $44,560 $163,514 Current liabilities $11,782 $58,454 Long-term debt 17,471 40,452 Total stockholders' equity 15,307 64,608 Total liabilities and stockholders' equity $44,560 $163,514 Target Corporation Wal-Mart Stores, Inc. Beginning-of-Year Balances Total assets $37,349 $151,587 Total stockholders' equity 15,633 61,573 Current liabilities 11,117 52,148 Total liabilities 21,716 90,014 Other Data Average net accounts receivable $7,124 $3,247 Average inventory…

Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows : (please check the images)   a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days) + Comment on each of the ratios calculated in part (a) above.

Profitability Ratios East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all numbers in thousands).   Fiscal Year 3 Fiscal Year 2   Net income $144,600   $74,500     Interest expense 3,000   11,100       Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $3,981,316   $3,787,106   $3,346,228   Total stockholders' equity (at end of fiscal year) 1,177,790   1,154,468   859,046   Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders’ equity is 15.0% for the year ended April 2, Year 3. a.  Determine the return on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 fill in the blank 1 % Fiscal Year 2 fill in the blank 2 % b.  Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal…

Use the following selected data from Business Solutions's income statement for the three months ended March 31, 2022, and from its March 31, 2022, balance sheet to complete the requirements. Computer services revenue $ 25, 364 Net sales (of goods) 18, 138 Total sales and revenue 43, 502 Cost of goods sold 15, 644 Net income 19, 551 Quick assets 90, 356 Current assets 97, 288 Total assets 121, 816 Current liabilities 820 Total liabilities 820 Total equity 120, 996 Required: Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. Compute the current ratio and acid - test ratio. Compute the debt ratio and equity ratio. What percent of its assets are current? What percent are long term?

PLEASE ANSWERED WITH IN THE  FORMAT BY PROVIDING FORMULA IN DETAILS                                                           Income statements for Thornton Company for Year 3 and Year 4 follow. THORNTON COMPANY Income Statements   Year 4 Year 3 Sales $200,900 $180,900 Cost of goods sold 142,300 120,300 Selling expenses 21,600 19,600 Administrative expenses 12,500 14,500 Interest expense 3,200 5,200 Total expenses $179,600 $159,600 Income before taxes 21,300 21,300 Income taxes expense 6,300 3,800 Net income $15,000 $17,500 Required Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.     PLEASE PROVIDE ANSWER IN TEXT

Profitability Ratios East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all numbers in thousands).   Fiscal Year 3 Fiscal Year 2   Net income $147,800   $76,100     Interest expense 3,000   11,400       Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $2,533,934   $2,410,328   $2,194,936   Total stockholders' equity (at end of fiscal year) 1,213,642   1,189,610   867,146   Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders’ equity is 15.0% for the year ended April 2, Year 3. a.  Determine the return on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 fill in the blank 1 % Fiscal Year 2 fill in the blank 2 % b.  Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal…