E12-24B Vertical analysis (Learning Objective 2) 15–20 min. Simpson Painting, Inc., requested that you perform a vertical analysis of its balance sheet to determine the component percentages of its assets, liabilities, and stockholders' equity. Round to the nearest tenth of a percent. P. Donnelly, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 Revenue Expenses: Cost of Goods Sold Selling and General Expenses Interest Expense Income Tax Expense Total Expenses Net Income 2018 $500,000 $245,000 111,000 10,000 54,700 420,700 $ 79,300 2017 $439,500 $236,000 103,500 6,500 44,400 390,400 $ 49,100
Q: Katak purchased a Toyota Kluger for $70,000. She purchased the vehicle on 15 September 2021.
A: Generally, within the first year, cars depreciate up to 20% of their value per annum. Therefore,…
Q: Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected…
A: Budgeting - Budgeting is the estimation of the later period on the basis of past performance. Using…
Q: $76,000 on January 1, 2022. The truck is expected to have a salvage $6.000 at the end of its 4-year…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: The Oklahoma State Company produces 9-volt batteries and AAA batteries. The company uses a…
A: The overhead is said to be over applied when actual overhead cost is more than the applied overhead…
Q: General Journal, Income Statement, and Balance Sheet are required.
A: Given in the question: Asset purchase date = July 1, 2022 Asset Purchase Cost = $13,200 Asset usage…
Q: 13 01:35:02 Assume the following information appears in the standard cost card for a company that…
A: The term "variance" refers to the difference between the actual cost of variable production…
Q: the Custodial Division of Clark's Corporate Services (CCS) has assets of $1.2 million. During the…
A: Residual income: The residual income indicates the income or money the company or an individual has…
Q: Vlada is planning on attending of University of Washington and is getting help from her grandparents…
A: The term "present value" (PV) refers to the value at the current time of a quantity of money or…
Q: Topic 3: Assignment 4 - T-Accounts Record each of the following transactions, using T-Accounts July…
A: Journal Entries are the day-to-day transactions of the business that take places to run a business.…
Q: Bonita Corporation manufactures titanium and aluminum tennis racquets. Bonita's total overhead costs…
A: Cost allocation means to allocate the cost using appropriate cost drivers to different activities or…
Q: Question 4-Business Combination-calculations and analytical Accounting by acquirer On 1 July 2021,…
A: A) Acquisition of net assets of Jolie Ltd: FV of an Angelina Ltd shares is $2.40:- Net fair value…
Q: Stock Splits and Stock Dividends. Bermu currently has 500,000 shares of stock outstanding that sell…
A: A share price is a minimum price that must be paid to acquire a share from the market. It is…
Q: TB MC Qu. 15-114 (Algo) Lowden Company uses job order costing... Lowden Company uses job order…
A: Overhead costs are essential for the overall functioning of a business but are not directly tied to…
Q: XYZ Corporation earned $500,000 in revenue for the year. The cost of goods sold was $200,000, and…
A: Gross Profit: Gross profit represents the amount of revenue remaining after deducting the cost of…
Q: Division C makes a part that it sells to customers outside of the company. Data concerning this part…
A: Transfer price is a price assigned internally by one department for another department of the same…
Q: The balance sheet data of Crane Company at the end of 2020 and 2019 are shown below. Cash' Accounts…
A: Cash flow statement is the financial statement that records all the cash inflow and cash outflow…
Q: a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using…
A: Cash Flow From Operating Activities(CFO) represents the amount a company brings in from its…
Q: In the year 2019, a corporation made $18.5 Million in revenue, $2.3 Million of operating expenses,…
A: Corporations have to pay taxes on their profits and earnings. For the calculation of tax liability,…
Q: Japes City issued $1,000,000 general obligation bonds at 101 to build a new city hall. As part of…
A: When an entity issues a bond, it essentially borrows money from investors. Bonds are a form of…
Q: Pls answer very fast.I ll upvote. Thank You The Rusty Auto Parts Company has sales of $20,000…
A: We know that, Cost + Markup = Sales Price
Q: On January 2, 2021, Marzelle Corp. purchased 30% of the voting common stock of Hoffman Co., paying…
A: Amortization represents the reduction in the value of an asset over a period of time. It is…
Q: Exercise 18-37 (Algo) Manufacturing Cycle Time and Efficiency (LO 18-6) Steger & Company has the…
A: MANUFACTURING CYCLE EFFICIENCY Manufacturing Cycle Efficiency is the Ratio Between Total Processing…
Q: Use the following Information for the Exercises below. (Static) [The following information applies…
A: “Since you have posted multiple questions, we will provide the solutiononly to the first question as…
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: Flexible budget :— It is calculated by multiplying standard amount per unit with actual units.…
Q: Q's employer provided her with the following gifts and awards: Golf shirt with employer logo valued…
A: The part of the total income that the IRS considers to be taxable is known as taxable income. Both…
Q: 33 04:07:08 The partnership of Rachel, Adams, and Nixon has the following trial balance on September…
A: Partnership is the relation between two or more person, it has the following characteristics They…
Q: Coronado Company began the year 2025 with retained earnings of $661000. During the year, the company…
A: Retained earnings are the unallocated profits available for distribution to the shareholders. It is…
Q: Direct labor cost budget Provo Racket Company manufactures two types of tennis rackets, the Youth…
A: Total hours required for production :— It is calculated by multiplying production units with hours…
Q: er governments? A.) To determine its budget B.) To levy taxes and set rates C.) To establish debt…
A: Powers of Municipality is from virtual autonomy to complete subordination to the state. Powers of…
Q: Banks are finding more ways to charge fees,such as a $34.60 overdraft fee. Sue McVickers has an…
A: A Bank Reconciliation Statement aligns an organization's bank account with its financial documents…
Q: Required Information [The following information applies to the questions displayed below.] Project A…
A: Payback period is a financial metric used to determine the length of time required for an investment…
Q: Required: a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book…
A: Regular Tax Liability: Regular Tax Liability refers to the amount of tax owed by an individual or a…
Q: Corporation produces a product that requires 2.60 pounds of materials Swifty and 0.10 pounds,…
A: Standard direct material price per pound : Standard quantity per unit = $2.60 pound + $$0.30 pound +…
Q: From the following data, determine the total Cost of Goods Manufactured (COGM): Costs of units in…
A: Cost of goods manufactured = Beginning work in process + cost of units introduced during the period…
Q: Eileen, a single individual, had $125,000 taxable income. Compute Eileen's income tax assuming that…
A: In general, taxable income includes various sources of income, such as wages, salaries, bonuses,…
Q: Megamart, a retailer of consumer goods, provides the following information on two of its departments…
A: Profit margin means the percentage profit earned by the entity on its sales revenue. It is…
Q: 1. A chain of ABC plc, FAMA Beauty Ltd is a wholesale manufacturer of healthy foodstuffs. Because of…
A: To produce maximum demand, 78,000 labour hours are required but only 60,000 labour hours are…
Q: Brighton Stationary is a small firm processing and selling office supplies. The firm has also…
A: Income statement is the financial statement that records all the income and expenses of the business…
Q: 10 B 02:39:43 Given the following information, determine the cost of the inventory at June 30 using…
A: LIFO Method :— It is one of the method of inventory valuation in which it is assumed that recent or…
Q: Joyner Company’s income statement for Year 2 follows: Sales $ 920,000 Cost of goods sold 506,000…
A: Cash flow statement is the financial statement which reports the inflows and outflows of cash during…
Q: Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would…
A: Relevant costs are those costs that are affected by a management decision. For instance here the…
Q: Required: a. Prepare journal entries to record the events above in the debt service fund. b. Prepare…
A: The Statement of Changes in Revenues, Expenses, and Fund Balances is a financial statement that…
Q: On January 1, 2022, Riverbed Country Club purchased a new riding mower for $20,000. The mower is…
A: The journal entries are prepared to record the transactions on regular basis. The straight line…
Q: Which of the following is the best evidence of continuous ownership of property? a. Examination of…
A: Audit evidence is the list of information obtained by the auditor during the course of audit…
Q: A firm had the following accounts and financial data for 202X Sales revenue Accounts receivable…
A: A financial indicator called earnings per share (EPS) shows how much of a company's profit can be…
Q: Maysen, Inc. reported the following amounts in its Statement of Cash Flows for the year ended…
A: There are three main financial statements – income statement, balance sheet and cash flow statement.…
Q: Required information [The following information applies to the questions displayed below.] Cardinal…
A: PRESENT VALUE OF CAH INFLOW Present Value is the current value of a future amount of money or a…
Q: Etsy Inc. has year-end account balances of Sales Revenue $795,635, Interest Revenue $14,740, Cost of…
A: Net income=Total revenues-Total expenses
Q: Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for…
A: Commercial substance - in a transaction is a very crucial factor in determining the cost of the…
Q: Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc.…
A: FLEXIBLE BUDGET A flexible budget is a budget that is prepared for different levels of activity or…
Step by step
Solved in 3 steps
- (Learning Objective 2: Analyze accounts payable turnover) Barnacle Sales, Inc.’s,comparative income statements and balance sheets show the following selected information for2017 and 2018:2018$2,850,000$ 800,000$ 600,000$ 305,0002017$2,700,000$ 600,000$ 400,000$ 255,000Cost of goods sold.......................................................Ending inventory.........................................................Beginning inventory ....................................................Average accounts payable ...........................................Requirements1. Calculate the company’s accounts payable turnover and days’ payable outstanding (DPO)for 2017 and 2018.2. On the basis of this computation alone, has the company’s liquidity position improved ordeteriorated during 2018?OBJECTIVE: To enable learners to utilize financial ratios as a mechanism to evaluate the firm's financial performance and identify areas for making decisions for improvement REQUIREMENT: Financial Statement Analysis Question Refer to the following financial statements of Delima Corporation for 2019 and 2020: Delima Corporation Income Statements For the year ended 31 December (in millions) 2020 $13,198 7,750 2019 $12,397 7,108 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations 5,448 5,289 3,472 3,299 1,976 1,990 Interest expense 233 248 Other (income) expense, net 11 1,732 503 1,229 Income before income taxes 1,742 Income tax expense 502 Net income 1,240 Delima Corporation Balance Sheets 31 December (in millions) 2020 2019 Assets Current assets Cash $460 $444 Accounts receivables (net) 1,188 1,132 1,190 1,056 225 2,915 3,128 Inventories Other current assets 247 Total current assets 3,027 3,281 Property (net) 5,593 $11,901 Other assets…(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?
- (Learning Objective 4: Construct the financial statements) Suppose Robin SportingGoods Company reported the following data at July 31, 2018, with amounts in thousands:Cost of goods sold................. $136,800Cash...................................... 50,000Property and equipment, net ... 19,400Common stock...................... 26,000Inventories ............................ 36,000Long-term liabilities.............. 11,700Dividends.............................. 0Retained earnings,July 31, 2017 ............ $ 31,500Accounts receivable....... 34,000Net revenues ................. 191,000Total current liabilities.. 80,000All other expenses......... 29,000Other current assets ...... 5,000Other assets................... 30,000Use these data to prepare Robin Sporting Goods Company’s single-step income statement forthe year ended July 31, 2018; statement of retained earnings for the year ended July 31, 2018;and classified balance sheet at July 31, 2018. Use the report format for the balance…(Learning Objective 7: Calculate return on assets) Hometown Supply Companyreported 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...................$84,000$ 4,200$70,000$82,600$ 4,050$69,450Requirements1. 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?The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
- Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: The following; additional information is also available. The December 31, 2019, ending inventory is 14,700. During 2019, 4,200 shares of'common stock were outstanding the entire year. The income tax rate 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Gaskins cost of goods sold. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 multiple-step income statement. 4. Prepare a 2019 statement of comprehensive income.ement. From the following income statement accounts in the popup window, ne income statement for the year. ne operating cash flow for the year. 6 Data Table ne income statement for the year. e income statement below. (Round to the nearest dollar. (Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement Income Statement Accounts for the Year Ending 2017 Year Ending December 31, 2017 Account Cost of goods sold Interest expense Balance $345,000 $82,000 $42,000 $744,000 $66,000 $112.000 Taxes Revenue Selling, general, and administrative expenses Depreciation Print Done income any list or enter any number in the input fields and then continue to the next question. %24 %24 %24 %24Not Graded please assist with the calculations with image provided. Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicatedusing the EXCEL template provided:10. Average collection period11. Inventory turnover12. Days’ sales in inventory13. Debt-to-equity ratio14. Times-interest-earned ratio15. Operating-cash-flow-to-capital-expenditures ratio16. Earnings per share17. Price-earnings ratio18. Dividend yield19. Dividend payout ratioTotal assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56
- E5-27 Computing the gross profit percentage Cauy Cookies earned net sales revenue of $66,000,000 in 2018. Cost of goods sold was 39 600.000, and net income reached $7,000,000, the company's highest ever. Compute the company's gross profit percentage for 2018.(Learning Objective 7: Evaluate liquidity using the quick [acid-test] ratio and days’sales in receivables) Northern Products reported the following amounts in its 2019 financialstatements. The 2018 amounts are given for comparison.2019 2018Current assets:Cash............................................ $ 9,500Short-term investments................ 7,000Accounts receivable..................... $70,100Less: Allowance foruncollectibles.......................$86,500(7,500) (5,500) 64,600Inventory..................................... 190,000Prepaid insurance ........................ 2,200Total current assets..................... 273,300Total current liabilities.................... 106,000Net sales (all on account) ................$ 9,50010,50079,000189,0002,200290,20099,0001,077,000 734,000Requirements1. Compute Northern’s quick (acid-test) ratio at the end of 2019. Round to two decimalplaces. How does the quick ratio compare with the industry average of 0.92?2. Compare days’ sales…Prepare an income statement for Hansen Realty for the year ended December 31, 2023. Beginning inventory was $1,242. Ending inventory was $1,594. Note: Input all amounts as positive values. Sales Sales returns and allowances Sales discount Purchases Purchase discounts Depreciation expense Salary expense Insurance expense Utilities expense Plumbing expense Rent expense HANSEN REALTY Income Statement For Year Ended December 31, 2023 Gross profit from sales Operating expenses: $ 34,300 1,086 1,146 10,212 Total operating expenses 534 109 4,900 2,300 204 244 174