Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) Net income Dividends Addition to retained earnings $2,600 5,200 $45,000 35,000 $10,000 2,200 $ 7,800 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "O" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 3,050 Accounts payable Accounts receivable 4,300 Notes payable $ 2,400 4,100 Inventory 6,400 Total $ 13,750 Total Long-term debt $ 6,500 $ 28,000 Fixed assets Owners' equity Net plant and equipment $ 35,200 Common stock and paid-in surplus $ 11,000 Retained earnings 3,450 Total $ 14,450 Total assets $ 48,950 Total liabilities and owners' equity $ 48,950 Percentage of Sales

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) Net income Dividends Addition to retained earnings $2,600 5,200 $45,000 35,000 $10,000 2,200 $ 7,800 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "O" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 3,050 Accounts payable Accounts receivable 4,300 Notes payable $ 2,400 4,100 Inventory 6,400 Total $ 13,750 Total Long-term debt $ 6,500 $ 28,000 Fixed assets Owners' equity Net plant and equipment $ 35,200 Common stock and paid-in surplus $ 11,000 Retained earnings 3,450 Total $ 14,450 Total assets $ 48,950 Total liabilities and owners' equity $ 48,950 Percentage of Sales

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 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATIONIncome Statement   Sales $ 42,900   Costs 33,900   Taxable income $ 9,000   Taxes (21%) 1,890   Net income $ 7,110       Dividends $ 2,509       Addition to retained earnings 4,601    The balance sheet for the Heir Jordan Corporation follows.    HEIR JORDAN CORPORATIONBalance Sheet Assets Liabilities and Owners’ Equity   Current assets   Current liabilities     Cash $ 2,250     Accounts payable $ 4,000     Accounts receivable 5,100     Notes payable 8,000     Inventory 8,000       Total $ 12,000       Total $ 15,350   Long-term debt $ 22,000   Owners’ equity   Fixed assets     Common stock and…
Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATIONIncome Statement   Sales $ 42,900   Costs 33,900   Taxable income $ 9,000   Taxes (21%) 1,890   Net income $ 7,110       Dividends $ 3,400       Addition to retained earnings 3,710    The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.)    HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Percentage of Sales Assets…
Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATIONIncome Statement   Sales $ 47,600   Costs 35,600   Taxable income $ 12,000   Taxes (25%) 3,000   Net income $ 9,000       Dividends $ 3,000       Addition to retained earnings 6,000    The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Percentage of Sales Assets…
Compute the component percentages for Trixy Magic's Income statement below. (Enter your answers as a percentage rounded to 2 decimal place (i.e. 0.1234 should be entered as 12.34). Enter all answers as positive values.) Net sales Cost of sales Gross margin Expenses Selling, general, and administrative Depreciation Interest-net Total expenses Pre-tax earnings Income tax provision Net earnings TRIXY MAGIC, INC. Consolidated Statements of Earnings (in millions) Fiscal 2018 $ $ 48,236 31,732 16,504 11,093 1,547 294 12,934 3,570 1,328 2,242 % Sales 100.00 % % Fiscal Years Ended on % Sales Fiscal 2017 $ $ 48,284 31,558 16,726 10,534 1,373 201 12,108 4,618 1,719 2,899 100.00 % % Fiscal 2016 % Sales S 46,930 30.741 16,198 ३ 9,746 1,171 156 11,073 5,125 1,910 3.215 100.00 %
Here are the comparative income statements of Pharoah Corporation. PHAROAH CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $609,000 $500,400 Cost of goods sold 463,000 428,500 Gross Profit 146,000 71,900 Operating expenses 77,800 40,300 Net income $ 68,200 $ 31,600 (a)Prepare a horizontal analysis of the income statement data for Pharoah Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) PHAROAH CORPORATIONComparative Income Statementchoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31 Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales…
Current Attempt in Progress Here are the comparative income statements of Oriole Corporation. ORIOLE CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $632,300 $544,800 Cost of goods sold 456,600 415,500 Gross Profit 175,700 129,300 Operating expenses 74,100 44,500 Net income $ 101,600 $ 84,800 (a)Prepare a horizontal analysis of the income statement data for Oriole Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) ORIOLE CORPORATIONComparative Income Statementchoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31 Increase or (Decrease) During 2022 2022 2021…
Here are the comparative condensed income statements of Cheyenne Corporation. CHEYENNE CORPORATIONCondensed Income StatementsFor the Years Ended December 31 2022 2021 Net sales $588,000 $490,000 Cost of goods sold 474,516 416,010 Gross profit 113,484 73,990 Operating expenses 80,556 44,100 Net income $ 32,928 $ 29,890 (a)Prepare a horizontal analysis of the income statement data for Cheyenne Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) CHEYENNE CORPORATIONCondensed Income Statementschoose the accounting period Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales $588,000 $490,000 $enter a dollar amount enter…
Using the income statement information for Omega Corporation that follows, prepare a vertical analysis of the income statement for Omega Corporation. If required, round percentages to one decimal place. Percentage sign will appear automatically. Omega Corporation Income Statement 1 Amount Percentage 2 Sales $500,000.00 3 Cost of goods sold 300,000.00 4 Gross profit $200,000.00
Exercise 5-11 In its income statement for the year ended December 31, 2022, Swifty Corporation reported the following condensed data. Operating expenses $ 711,000 Interest revenue $ 24,000 Cost of goods sold 1,247,000 Loss on disposal of plant assets 8,000 Interest expense 61,000 Net sales 2,191,000 Income tax expense 38,000 Other comprehensive income (net of $1,200 tax) 7,400 Prepare a multiple-step income statement.
Here are the comparative income statements of Ivanhoe Corporation. IVANHOE CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $612,400 $531,500 Cost of goods sold 447,500 409,400 Gross Profit 164,900 122,100 Operating expenses 78,000 49,600 Net income $ 86,900 $ 72,500 (a)Prepare a horizontal analysis of the income statement data for Ivanhoe Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) IVANHOE CORPORATIONComparative Income Statementchoose the accounting period Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales $612,400 $531,500 $enter a dollar amount enter percentages…
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATIONIncome Statement Sales $ 47,600 Costs 35,600 Taxable income $ 12,000 Taxes (25%) 3,000 Net income $ 9,000 Dividends $ 2,505 Addition to retained earnings 6,495 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATIONBalance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,050 Accounts payable $ 2,400 Accounts receivable 4,700 Notes payable 4,500 Inventory 6,400 Total $ 6,900 Total $ 13,150 Long-term debt $ 25,000 Owners’ equity Fixed assets Common stock and…
Based on the above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable and inventory from 2022 to 2024. (Round answers to 1 decimal place, eg 13.5% or 13.5.) 2023 Sales Cost of goods sold Gross margin Other expenses Income taxes Net income Current ratio Quick ratio A/R turnover Average collection period Inventory turnover Days to sell inventory Debt to equity Return on assets 2022 Return on equity % 2022 % % 2022 :1 :1 times days times days 56 2023 % % % 2023 times days times days 2024 Based on the above information, analyze the company's use of leverage from 2022 to 2024. (Round answers to 1 decimal place, eg 15.1%) % 2024 % % % 2024