J.P. Robard Manufacturing Company Income Statement for the Year Ended December 31, 2021 ($ in thousands) 8,000 3,300 4,700 3,000 1,700 367 1,333 533 800 Item Net sales Cost of goods sold Gross profit Operating expenses (includes $500 depreciation) Net operating income Interest expense Earnings before taxes Income taxes (40%) Net income +
J.P. Robard Manufacturing Company Income Statement for the Year Ended December 31, 2021 ($ in thousands) 8,000 3,300 4,700 3,000 1,700 367 1,333 533 800 Item Net sales Cost of goods sold Gross profit Operating expenses (includes $500 depreciation) Net operating income Interest expense Earnings before taxes Income taxes (40%) Net income +
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6E: Balance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown...
Related questions
Question
![a)
Required:
i)
J.P. Robard Manufacturing Company
Income Statement for the Year Ended December 31, 2021
Item
Net sales
Cost of goods sold
Gross profit
Operating expenses (includes $500 depreciation)
ii)
Net operating income
Interest expense
Earnings before taxes
Income taxes (40%)
Net income
+
iii)
iv) Day sales outstanding
($ in thousands)
8,000
Calculate the following ratios from the above informations:
Profit margin
Inventory turnover
Current ratio
3,300
4,700
3,000
1,700
367
1,333
533
800
b) i. Analyse firm performance based on ratios as in (a) and compare with an industry ratios
as stated below.
Profit margin = 30%
Inventory turnover = 20 times
Curent ratio = 5 times
Day sales ou anding = 20 days
ii) What is the strength and weaknesses of the firm (if any)? Elaborate.
+
c) Recommend to the management how to improve the firm performance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb369eb62-11fd-4878-881a-f7bb242e6acd%2Febe5ea1e-092a-477e-95ab-24901a58a402%2F3vd4vol_processed.png&w=3840&q=75)
Transcribed Image Text:a)
Required:
i)
J.P. Robard Manufacturing Company
Income Statement for the Year Ended December 31, 2021
Item
Net sales
Cost of goods sold
Gross profit
Operating expenses (includes $500 depreciation)
ii)
Net operating income
Interest expense
Earnings before taxes
Income taxes (40%)
Net income
+
iii)
iv) Day sales outstanding
($ in thousands)
8,000
Calculate the following ratios from the above informations:
Profit margin
Inventory turnover
Current ratio
3,300
4,700
3,000
1,700
367
1,333
533
800
b) i. Analyse firm performance based on ratios as in (a) and compare with an industry ratios
as stated below.
Profit margin = 30%
Inventory turnover = 20 times
Curent ratio = 5 times
Day sales ou anding = 20 days
ii) What is the strength and weaknesses of the firm (if any)? Elaborate.
+
c) Recommend to the management how to improve the firm performance.
![The balance sheet and income statement for J. P. RObard Manufatcuring Company are as
follows:
Item
Cash
J.P. Robard Manufacturing Company
Balance Sheet as at 31 December 2021
($ in thousands)
500
Account receivable
Inventory
Total current assets
Net fixed assets
Total assets
Accounts payable
Accrued expenses
Short-term notes payable
Total curernt liabilities
Long-term debt
Total common equity
Total liabilities and equity
2,000
1,000
3,500
4,500
8,000
1,100
600
300
2,000
2,000
4.000
8,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb369eb62-11fd-4878-881a-f7bb242e6acd%2Febe5ea1e-092a-477e-95ab-24901a58a402%2Fhwnrqk_processed.png&w=3840&q=75)
Transcribed Image Text:The balance sheet and income statement for J. P. RObard Manufatcuring Company are as
follows:
Item
Cash
J.P. Robard Manufacturing Company
Balance Sheet as at 31 December 2021
($ in thousands)
500
Account receivable
Inventory
Total current assets
Net fixed assets
Total assets
Accounts payable
Accrued expenses
Short-term notes payable
Total curernt liabilities
Long-term debt
Total common equity
Total liabilities and equity
2,000
1,000
3,500
4,500
8,000
1,100
600
300
2,000
2,000
4.000
8,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning