explain net income The following are balance sheet data of Anwar Ali Company Ltd.Debit BalancesCashAccount receivableMerchandise InventoryPrepaid ExpensesLandBuildingEquipmentRetained earningsCredit BalancesAllowances for Bad debtsAllowances for Depreciation-BuildingAllowances for Depreciation-equipmentAccount payableAccrued ExpensesLong term LoanCapital Stock Rs. 10 ParRetained EarningsAdditional Data:2017201612,0004,00040,00050,00095,000130,0007,0003,00065,00075,000200,000125,00018,00010,00010,000447,000397,000201720164,0005,00030,00027,0003,0005,00050,00063,00010,0007,000100,00080,000250,000200,00010,000447,000397,000During the year land costing Rs.10,000 was sold at a gain of Rs.5,000 for cash and the oldequipment costing Rs.10,000 was sold for Rs.2,000 on credit.Required: Prepare Cashflow statement using indirect method for the year ended December31,2017.

A cash flow statement is a financial statement that provides a detailed breakdown of the cash…

Answered: The following are balance sheet data of…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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Comparable balance sheets are presented below:Dec. 31, 2015 Dec. 31, 2014AssetsCash 1.2 1.9Accounts Receivable 0.4 0.3Inventory 1.3 1.0Property, Plant & Equipmen 6.0 3.0Less: Accumulated Depreciation (0.8) (0.4)8.1 5.8Liabilities & Stockholder's EquityAccounts Payable 2.6 2.1Dividends Payable - -Bonds Payable 4.4 2.8Common Stock, $1 Par Value 0.2 0.1Paid-in Capital in Excess of Par Value 3.2 2.2Retained Earnings (2.3) (1.4)8.1 5.8Additional Information:1. The change in PP&E represent cash expenditures for a new factory2. There were no disposals of PP&E during the year3. There were no dividends declared during the year4. The common stock was issued for cash5. A review of the income statement noted a gross profit margin of 20% and Research & Development costs of $0.7 for the yearRequired:1. Prepare a statement of cash flows using the indirect method ANSWER : Net Profit (0.90) WHY IS THE NET PROFIT .90 PLEASE EXPLAIN
Ratios For Amazon.com, Inc. (AMZN) 2018 2019 Current Ratio Acid test Ratio Ave. Days Collection Total Debt to Total Assets Return on Equity Asset Turnover Profit Margin on net Sales Inventory Turnover***
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 (S in 8ees) 2018 2017 Assets $ 20 50 Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation $ 33 48 (4) (3) 2 55 50 15 1e 70 48 250 (50) $ 369 225 (25) $ 420 Liabilities $ 13 2 $ 20 Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity 4 2 7. 30 95 78 (2) (3) Common stock 210 200 Paid-in capital-excess of par Retained earnings Less: Treasury stock 24 20 45 47 (8) $ 420 $ 369 DUX COMPANY Income Statement For the Year Ended December 31, 2018 ($ in Bees) Revenues $ 200 3 $ 203 Sales revenue Dividend revenue Expenses Cost of…
he curent sections of Saasota CorpS balance sheets at December 31, 2016 and 2017, are presented here. Sarasota Corp.'s net income for 2017 wras $154,071. Depreriation expense was $27, 89. 2017 2016 Curvent asses Cash $105,735 $ 99,693 Accounts receivable 80,560 89,623 Bventory 169,176 173,204 Propaid expenses 27,189 22,154 Total current assets $382,660 $384,674 Current labilities aeed sasuadbo pan $ 15,105 $ 5,035 85,595 92,644 Total current liabilities $100,700 $ 97,679 Prepare the net cash provided (used) by operating activities section of the company's statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash low swith either a Sarasota Corp. Partial Statement of Cash Flows For the Year Ended December 31, 2017 Net Cash used by Operating Activities Net Income 154071 Adjustments to reconcile net income to Tet Cash Provided by Operating Activities Y Depreciation Expense 27189 Decrease in Accounts Receivable (89623)…
Use the current asset section of the balance sheets of the Waverley Company as of June 30, 2017 and 2016 presented below to answer the questions that follow. 2017 2016Cash and cash equivalents R 75,000 R 58,800Trade accounts receivable, net 157,500 193,200Inventory 208,200 253,400Other current assets 18,400 15,500Total current assets R 459,100 R 520,900Total assets R2,650,000 R3,430,000Required:Complete a horizontal analysis of the current asset section of Waverley Company’s balance sheet for 2017. Your answers for “% Change” should be rounded to one decimal place, e.g.,…
Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total comment 2018 $100 275 175 $750 2,300 $3,050 $150 75 150 $375 450 $825 1,225 1,000 #7:375 2017 $85 300 250 $635 1,490 $2,125 $85 50 75 $210 290 $500 1,225 400 41.61
Calculate the following ratios from the income statement and balance sheet all are required 1:Current ratio 2--:Quick Ratio 3-Cash Ratio 4 Receivable Turnover Ratio (RTR) 5:Inventory Turnover Ratio (ITR) Statement of financial positionas at 31 December 2018 2018 2017 Note RO RO ASSETS Non-current assets Property, plant and equipment 14 8,407,572 9,300,442 Deferred tax assets 12 40,977 18,550 8,448,549 9,318,992 Current assets Inventories 15 430,885 422,421 Trade and other receivables 16 1,129,440 1,235,724 Due from related parties 24 70,300 73,050 Cash and bank balances 17 6,856,734 6,439,709 Total current assets 8,487,359 8,170,904 Total assets 16,935,908 17,489,896 EQUITY…
DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2018 2017 Assets Cash Accounts receivable 24 $ 43 $ 25 49 57 Less: Allowance for uncollectible accounts (4) (3) 6 Dividends receivable Inventory Long-term investment Land 7 65 55 25 15 87 45 Buildings and equipment Less: Accumulated depreciation 220 260 (30) $ 462 (60) $ 400 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity $ 18 $ 30 7 8 8 12 13 42 105 75 (7) (13) Common stock 215 205 Paid-in capital-excess of par Retained earnings Less: Treasury stock 31 25 43 49 (13) $ 462 $ 400 Liabilities $ 18 $ 30 Accounts payable Salaries payable 7 8 Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity 9 8 12 13 42 105 75 (7) (13) Common stock 215 205 Paid-in capital-excess of par Retained earnings Less: Treasury stock 31 25 43 49 (13) $ 462 $ 400 Additional…
A comparative balance sheet for Gena Company appears below:GENA COMPANYComparative Balance SheetDec. 31, 2021 Dec. 31, 2020AssetsCash $ 34,000 $11,000Accounts receivable 21,000 13,000Inventory 35,000 17,000Prepaid expenses 6,000 9,000Long-term investments -0- 17,000Equipment 60,000 33,000Accumulated depreciation—equipment (20,000) (15,000)Total assets $136,000 $85,000Liabilities and Stockholders' EquityAccounts payable $ 17,000 $ 7,000Bonds payable 36,000 45,000Common stock 53,000 23,000Retained earnings 30,000 10,000Total liabilities and stockholders' equity $136,000 $85,000Additional information:1. Net income for the year ending December 31, 2021 was $35,000.2. Cash dividends of $15,000 were declared and paid during the year.3. Long-term investments that had a cost of $17,000 were sold for $14,000.4. Depreciation expense for the year was $5,000.InstructionsPrepare a full statement of cash flows for the year ended December 31, 2021, using the indirectmethod.
Refer to the following selected financial information from WorkFit Corporation. Compute the company's acid-test ratio. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Current liabilities Multiple Choice O O O 2.76. 0.91. 1.10. 2.67. 1.63. $ 42,250 59,180 79,500 115,000 9,700 111,000
Calculate following ratios If you are not able to calculate with the given the information shown, indicate what is missing. After calculating each ratio indicate whether the trend from 2017 to 2018 is good or bad and why. Year 2018 Year 2017 Net Profit Margin Total Asset turnover Debt to Tangible Net Worth Ratio Operating Cash Flow / Total Debt
Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company. Financial Ratios Fiscal Year Ended Previous Fiscal Year Formula Dec 31, 2019 Dec 31, 2018 Liquidity Analysis Ratios: Current Assets / Current Liabilities Current Ratio or 1.46 1.36 Working Capital Ratio (Current Assets - Inventory - Prepayments) / Current Liabilities Quick Ratio 0.96 0.86 Solvency Ratio Total Assets / Total Liabilities 1.46 1.44 Financial Leverage Ratios Debt Ratio Total Debt/Total Assets 0.47 0.48 Total Debt/Total Stockholders Equity Debt-to-Equity Ratio 1.48 1.57 Earnings Before Interest and Taxes (EBIT) / Interest Charges Total Assets / Total Stockholders' Equity Interest Coverage 2.38 2.61 Asset to Equity Ratio 3.16 3.28 Profitability Ratios Gross Profit Margin Sales - Cost of Goods Sold or Cost of Service / Sales 19.76 19.43 Net Profit Margin Net Profit / Sales 11.34 11.42 Net Income / Total Assets 2.67 2.9 Return on Assets Net Income /…

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