Chapter 18, Problem 1IFRP

In the income statement below, ABC Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount? Income Statement ($ Million)   Year End   2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost of Sales (679.10) (659.00) (681.30) (667.00) Gross Operating Income                   Selling & Administration (339.70) (348.60) (351.20) (373.30) Depreciation (47.50) (52.00) (55.90) (75.20) Other Income/Expenses 11.80 7.60 7.00 8.20 Earnings Before Interest and Taxes                   Interest Income 1.30 1.40 1.70 2.00 Interest Expense (16.20) (15.10) (20.50) (23.70) Pre Tax Income                   Income Taxes (56.80) (64.20) (67.50) (72.60) Net Income                   Dividends (38.30) (38.70) (39.80) (40.10) Addition to Retained Earnings           Group of answer choices 121.8 108.7 132.7 132.8 No choice given

You are given the following information about Sandhill Plumbing Company. Revenues in 2017 totaled $ 917, depreciation expenses $ 85, costs of goods sold $ 399, and interest expenses $ 62. At the end of the year, current assets were $ 150 and current liabilities were $ 111. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25) Sandhill Plumbing CompanyIncome Statementchoose the accounting period       Amount select an income statement item     $ enter a dollar amount select an income statement item     enter a dollar amount select a summarizing line for the first part     $ enter a total amount for the first part select an income statement item     enter a dollar amount select a summarizing line for the second part     $ enter a total amount for the second part select an income statement item     enter a dollar amount select a summarizing line for the…

The 2017 annual report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2017 0000 December 31, 2016 Total assets $930.9 $920.1 Total liabilities 197.1 208.6 Net sales 515.7 517.4 Net income 80.7 67.2 Instructions Compute the following ratios for Tootsie Roll for 2017. a.    Asset turnover. b.    Return on assets. c.    Profit margin on sales. d.    How can the asset turnover be used to compute the return on assets?

The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31, 2011: sales of $1,593,952, costs of goods sold of $635,632.29, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has a tax rate of 35 percent. What is the company's net income? Set up an income statement to answer the question. (Round answers to 2 decimal places, e.g. 15.25) Choose the correct one:                                                                                               Amount                                                                                                      Revenues                                                                                                                ________________ Earnings before interest, taxes, depreciation, and amortization net income depreciation Cost of goods sold Earnings before interest and taxes Interest Earnings before taxes Taxes…

You are given the following information about Sandhill Plumbing Company. Revenues in 2017 totaled $ 917, depreciation expenses $ 85, costs of goods sold $ 399, and interest expenses $ 62. At the end of the year, current assets were $ 150 and current liabilities were $ 111. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25) Sandhill Plumbing CompanyIncome Statementchoose the accounting period       Amount select an income statement item     $ enter a dollar amount select an income statement item     enter a dollar amount select a summarizing line for the first part     $ enter a total amount for the first part select an income statement item     enter a dollar amount select a summarizing line for the second part     $ enter a total amount for the second part select an income statement item     enter a dollar amount select a summarizing line for the…

[The following information applies to the questions displayed below.] The income statement for Pruitt Company summarized for a four-year period shows the following: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 2016 $2,032,000 2017 $2,464,000 2018 $2,704,000 2019 $2,988,000 1,497,000 1,622,000 1,776,000 2,097,000 535,000 842,000 928,000 891,000 486,000 496,000 523,000 529,000 49,000 346,000 405,000 362,000 14,700 103,800 121,500 108,600 $34,300 $242,200 $283,500 $253,400 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The company uses a periodic inventory system. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. Sales revenue Cost of goods sold Gross profit Expenses Pretax income PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019

[The following information applies to the questions displayed below.) The income statement for Pruitt Company summarized for a four-year period shows the following: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 2016 $2,032,000 2017 $2,464,000 2018 $2,704,000 2019 $2,988,000 1,497,000 1,622,000 1,776,000 2,097,000 535,000 842,000 928,000 891,000 486,000 496,000 523,000 529,000 49,000 346,000 405,000 362,000 14,700 103,800 121,500 108,600 $34,300 $242,200 $283,500 $253,400 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The company uses a periodic inventory system. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 亞

Obtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com   a.    What was Target's gross margin percentage for the fiscal year ended February 2, 2019 (2018) and 2017? Use "Sales" for these computations b.    What was Target's Return on Sales percentage for 2018 and 2017? Use "Total Revenue" for these computations. c.    Target's return on ales percentage for 2017 was higher than it was in 2018. Ignoring taxes, how much higher would Target's 2018 net income have been if it's return on sales percentage in 2018 had been the same as for 2017?

Below are Financial Positionsstatement for Dawson Co at 31 December 2015 and 31 December 2016 and the Statement of Comprehensive Income for the year ended 31 December 2016. Statement of Comprehensive Income for the year ended 31 December 2016   2016   $ 000 Revenue 900 Cost of sales (550) Gross profit 350 Expenses (245) Finance Costs (9) Profit on sale of equipment 7 Profit before tax 103 Income tax expense (30) Profit for the period 73       Statements of Financial Position at 31 December 2016   2016 2015   $ 000 $ 000 Non-current assets:     Property, plant and equipment 528 447 Development costs 110 93   638 540 Current assets     Inventory 413 380 Trade Receivables 238 215 Investments 28 - Cash 111 4   790 599 Total Assets 1,428 1,139 Equity and liabilities     Ordinary shares of $1 each…