What are the firm's days' sales outstanding for 2018 and 2019?Income Statements ($ in millions)Balance Sheets ($ in millions)20182019 Assets20182019$1,265 | Cash$780 Short-Term investments$92 | Accounts rec.Sales Revenue$1,180$35$20$660$20$5Less: Cost of goods soldLess: Operating ExpensesLess: DepreciationEarnings before interest and taxesLess: Interest paid$75190235$50 Inventory$343 Total Current Assets$40250300$405$495$560$170$150 | Net fixed assets9901,105Taxable Income$235$193Less: Taxes (40%)$94$77 Total assets$1,4851,665Net income$141$116 Liabilities and Owner's EquityDividends (45%)Additions to Retained Earnings$63$5220182019$78$64 Accounts payable$125$100Accruals$10$10Notes payable3540Total Current Liabilities$170$150Long-term debt598790Total Liabilities$768$940Common stock554498Retained earningsTotal EquityTotal liab.& equity163$227717$725$1,485$1,665

Days' sales Outstanding = 365 × Account Receivable / Sales 2018 (in million) 2019 (in…

What are the firm's days' sales outstanding for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 | Assets 2018 2019 Sales Revenue $1,265 | Cash $1,180 $660 $35 $20 Less: Cost of goods sold Less: Operating Expenses Less: Depreciation Earnings before interest and taxes Less: Interest paid $780 $92 | Accounts rec. Short-Term investments $20 $5 $75 190 235 $40 $50 | Inventory 250 300 $405 $343 Total Current Assets $495 $560 $170 $150 | Net fixed assets 990 1,105 Taxable Income $235 $193 $77 Total assets $116 Liabilities and Owner's Equity Less: Taxes (40%) $94 $1,485 1,665 Net income $141 Dividends (45%) Additions to Retained Earnings $63 2018 2019 $52 $64 $78 Accounts payable $125 $100 Accruals $10 $10 Notes payable 35 40 Total Current Liabilities $170 $150 Long-term debt 598 790 Total Liabilities $768 $940 Common stock 554 498 Retained earnings Total Equity Total liab.& equity 163 $227 717 $725 $1,485 $1,665

What are the firm's days' sales outstanding for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 | Assets 2018 2019 Sales Revenue $1,265 | Cash $1,180 $660 $35 $20 Less: Cost of goods sold Less: Operating Expenses Less: Depreciation Earnings before interest and taxes Less: Interest paid $780 $92 | Accounts rec. Short-Term investments $20 $5 $75 190 235 $40 $50 | Inventory 250 300 $405 $343 Total Current Assets $495 $560 $170 $150 | Net fixed assets 990 1,105 Taxable Income $235 $193 $77 Total assets $116 Liabilities and Owner's Equity Less: Taxes (40%) $94 $1,485 1,665 Net income $141 Dividends (45%) Additions to Retained Earnings $63 2018 2019 $52 $64 $78 Accounts payable $125 $100 Accruals $10 $10 Notes payable 35 40 Total Current Liabilities $170 $150 Long-term debt 598 790 Total Liabilities $768 $940 Common stock 554 498 Retained earnings Total Equity Total liab.& equity 163 $227 717 $725 $1,485 $1,665

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 1.4.2MBA: Return on assets The following data (in millions) were adapted from recent financial statements of...

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Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
What are the firm's current ratios for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 Assets 2018 2019 $1,265 | Cash $780 Short-Term investments Sales Revenue $1,180 $35 $20 $660 $20 $5 Less: Cost of goods sold Less: Operating Expenses Less: Depreciation Earnings before interest and taxes Less: Interest paid $75 $92 | Accounts rec. 190 235 $40 $50 Inventory 250 300 $405 $343 Total Current Assets $495 $560 $170 $150 | Net fixed assets 990 1,105 Taxable Income $235 $193 Less: Taxes (40%) $77 Total assets $116 Liabilities and Owner's Equity $94 $1,485 1,665 Net income $141 Dividends (45%) Additions to Retained Earnings $63 $52 2018 2019 $64 Accounts payable Аccruals $78 $125 $100 $10 $10 Notes payable 35 40 Total Current Liabilities $170 $150 Long-term debt 598 790 Total Liabilities $768 $940 Common stock 554 498 Retained earnings Total Equity Total liab.& equity 163 $227 717 $725 $1,485 $1,665
Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Cash Accounts received Inventory Total Net fixed assets Total assets What is the equity multiplier for 2021? Multiple Choice 1.78 times 3.33 times 2.25 times 1.31 times 2.64 times 2020 2021 $ 250 890 $ 9,900 7,650 390 $ 1,860 88 Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) $220 990 1,750 1,655 $ 2,960 $ 2,795 3,360 3,880 $ 6,320 $ 6,675 $ 1,772 372 $1,400 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2020 $ 1,540 1,010 3,240 530 $ 6,320 2021 $ 1,632 1,293 2,970 780 $ 6,675
DIRECTION: Compute the following PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales Return on Equity= Profit/Shareholder's Equity Return on Asset= Profit/Total Asset TREND ANALYSIS Net Income Growth Rate Total Assets Growth Rate And also compute the percentage beside the columns December 31, December 31, PERCENTAGE 2021 2020 USD USD Assets Current assets Cash and cash equivalents 34,115,412 25,681,845 Short-term financial instruments 71,417,748 80,798,680 Short-term financial assets at amortized cost 2,944,705 2,409,853 Short-term financial assets at fair value through profit or loss 35,624 62,452 Trade receivables 35,585,565 27,065,012 Non-trade receivables 3,930,828 3,150,548 Prepaid expenses 2,042,001 1,980,685 Inventories 36,172,043 28,007,314 Other current assets 4,441,629 3,281,589 Assets held-for-sale - 812,370 Total Current Assets…
What are the firm’s days’ sales outstanding for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 Assets 2018 2019 Sales Revenue $2,580 $2,865 Cash $70 $50 Less: Cost of goods sold $1,060 $1,500 Short-Term investments $35 $9 Less: Operating Expenses $105 $162 Accounts rec. 400 460 Less: Depreciation $85 $80 Inventory 490 556 Earnings before interest and taxes $1,330 $1,123 Total Current Assets $995 $1,075 Less: Interest paid $350 $380 Net fixed assets 1890 1,910 Taxable Income $980 $743 Less: Taxes (40%) $392 $297 Total assets $2,885 2,985 Net income $588 $446 Liabilities and Owner's Equity Dividends (45%) $265 $201 2018 2019 Additions to Retained Earnings $323 $245 Accounts payable $240 $210 Accruals $20 $20 Notes payable 65 74 Total…
Please answer question 16-18 based on the following information from Owl Inc. Income Statement Sales COGS SGA Depreciation EBIT Interest E BT Taxes (35%) Net income Dividend payout a. b. Cash Accounts receivable Inventory Current assets Net fixed assets Total assets Net fixed assets Balance Sheet as of December 31, 2019 22,228 Accounts payable 19,450 Cash Accounts receivable Inventory Current assets 25,495 67,173 Less than $50,000 Between $65,000 and $75,000 C. Between $75,000 and $85,000 d. Between $85,000 and $100,000 205,000 272,173 Total assets 310,029 16. How much is the operating cash flow in 2020? 2019 2020 277,855 333,426 141,641 175,049 27,786 38,344 38,900 46,680 69,528 73,353 4,356 68,997 24,149 44,848 35% 221,671 4,275 65,253 22,839 42,414 50% Balance Sheet as of December 31, 2020 26,674 Accounts payable 26,674 Notes payable 35,010 Current liabilities 88,358 Notes payable Current liabilities Long-term debt Owner's equity Total liab & equity Long-term debt Owner's equity…
What are the firm’s net profit margins for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 Assets 2018 2019 Sales Revenue $2,580 $2,865 Cash $70 $50 Less: Cost of goods sold $1,060 $1,500 Short-Term investments $35 $9 Less: Operating Expenses $105 $162 Accounts rec. 400 460 Less: Depreciation $85 $80 Inventory 490 556 Earnings before interest and taxes $1,330 $1,123 Total Current Assets $995 $1,075 Less: Interest paid $350 $380 Net fixed assets 1890 1,910 Taxable Income $980 $743 Less: Taxes (40%) $392 $297 Total assets $2,885 2,985 Net income $588 $446 Liabilities and Owner's Equity Dividends (45%) $265 $201 2018 2019 Additions to Retained Earnings $323 $245 Accounts payable $240 $210 Accruals $20 $20 Notes payable 65 74 Total Current…
Requirement 1. Compute these ratios: Working Capital Current Debt-to- Ratio Cash Ratio Debt Ratio Equity Ratio Round ratios to two 14.44 212400 7.73 decimal places or format as percentages or Accounts Days Sales currency as appropriate. Inventory Days Sales in Gross ProfitReceivable in Turnover Inventory Percentage Turnover Receivables 2019 Total Assets = Rate of Rate of Asset Return on Return on Turnover Stockholders' Earnings Total Assets Ratio Equity Per Share 2019 SHE = Price/ Earnings *Current Stock Price is Dividend $10.00 per share Ratio* Dividend Yield Payout Dividend per share= Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term). Refer to at least 3 specific ratios in your analysis. Requirement 3: Based on the ratios computed above, analyze the company's management of inventory. Refer to at least 2 specific ratios in your analysis. Requirement 4: Based on the ratios computed above, analyze the company's…
Active Fast Berhad has the following income statement items for 2021: Revenue/Sales RM559,236 Cost of goods sold RM311,003 EBIT RM248,233 Interest expenses RM93,938 Income tax expenses RM54,003 Dividend payment 40% of net profit What is the amount of the firm's retained earnings? Select one: a. RM163,438 b. RM60,175 c. RM40,117 d. RM148,910
Figures are in millions. Total assets Total liabilities Net sales Net income December 31, 2019 $930.90 197.10 515.70 80.70 December 31, 2018 $920.10 208.60 517.40 67.20 Find Asset turnover, return on assets and profit margin on sales for the year 2019?
NOTE: SHOW A DETAILED SOLUTION. The summarised financial statements of LL Limited are as follows:” Profit & Loss Account/Income Statement for the year ended 31 December 2020 £000 Operating profit 80 Investment income 5 Interest payable (7) Profit before taxation 78 Taxation (14) Profit after taxation 64 Dividends payable (20) Retained profit 44 Balance Sheets 2020 2020 2019 2019 £000 £000 £000 £000 Fixed/Non-current assets Cost 370 290 Depreciation (70) (50) 300 240 Current assets Stock/inventory 95 70 Trade debtors/receivables 75 56 Short-term deposits 35 26 Bank 44 249 152 Current liabilities Trade creditors/payables 40 45 Interest payable 18 23 Taxation payable 10 12 Dividends payable 15 22 Bank 13…