Question

In: Finance

Question 1 Comparative statement data for Whispering Company and Metlock Company, two competitors, appear below. All...

Question 1

Comparative statement data for Whispering Company and Metlock Company, two competitors, appear below. All statement of financial position data are as of December 31, 2017, and December 31, 2016.

Whispering Company

Metlock Company

2017

2016

2017

2016
Net sales £1,504,113 £339,668
Cost of goods sold 1,023,277 236,886
Operating expenses 277,402 76,916
Interest expense 7,970 2,320
Income tax expense 61,839 7,410
Plant assets (net) 596,402 £572,775 143,285 £ 128,013
Current assets 408,279 385,366 85,117 81,019
Share capital—ordinary, £5 par 582,000 582,000 140,000 140,000
Retained earnings 253,932 216,973 52,054 44,504
Non-current liabilities 102,775 84,601 15,746 11,897
Current liabilities 65,974 74,567 20,602 12,631

Prepare a vertical analysis of the 2017 income statement data for Whispering Company and Metlock Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%. Enter all percentages as positive numbers.)

Compute the return on assets and the return on ordinary shareholders’ equity for both companies. (Round percentages to 1 decimal place, e.g. 12.1%.)

Solutions

Expert Solution

a)Formula spreadsheetb)

formula spreadsheet

jeff jeffy answered 4 months ago
Next > < Previous

Related Solutions

Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet...
Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016. Farris Company Ratzlaff Company 2017 2016 2017 2016 Net sales $1,549,035 $339,038 Cost of goods sold 1,080,490 241,000 Operating expenses 302,275 79,000 Interest expense 8,980 2,252 Income tax expense 54,500 6,650 Current assets 325,975 $312,410 83,336 $79,467 Plant assets (net) 521,310 500,000 139,728 125,812 Current liabilities 65,325 75,815 35,348 30,281 Long-term liabilities 108,500...
Here are comparative statement data for Wildhorse Company and Sandhill Company, two competitors. All balance sheet...
Here are comparative statement data for Wildhorse Company and Sandhill Company, two competitors. All balance sheet data are as of December 31, 2022, and December 31, 2021. Wildhorse Company Sandhill Company 2022 2021 2022 2021 Net sales $1,892,000 $580,000 Cost of goods sold 1,075,000 298,000 Operating expenses 260,000 87,000 Interest expense 8,200 2,200 Income tax expense 65,300 29,000 Current assets 498,742 $477,987 127,504 $ 121,585 Plant assets (net) 806,004 765,000 213,784 192,492 Current liabilities 101,477 115,997 54,082 46,330 Long-term liabilities...
Comparative financial statement data for Donovan Company and Maltese Company, two competitors in the same industry,...
Comparative financial statement data for Donovan Company and Maltese Company, two competitors in the same industry, appear below. All balance sheet data are as of December 31, 2012, and December 31, 2011. Donovan Company Maltese Company 2012 2011 2012 2011 Net sales $1,549,035 $339,038 Cost of goods sold 1,080,490 241,000 Operating expenses 302,275 79,000 Interest expense 8,980 2,252 Income tax expense 54,500 6,650 Current Assets 325,975 312,410 83,336 79,467 Common Stock, $10 par 500,000 500,000 120,000 120,000 Retained earnings 173,460...
Comparative income statement data for Carla Vista Inc. and Martinez Ltd., two competitors, are shown below...
Comparative income statement data for Carla Vista Inc. and Martinez Ltd., two competitors, are shown below for the year ended December 31, 2021. Carla Vista Martinez Net sales $1,920,000 $563,000 Cost of goods sold 1,102,080 356,942 Gross profit 817,920 206,058 Operating expenses 556,800 87,828 Profit from operations 261,120 118,230 Interest expense 6,960 1,252 Profit before income tax 254,160 116,978 Income tax expense 76,248 29,245 Profit $177,912 $87,733 Additional information: Average total assets $894,000 $250,563 Average total shareholders’ equity 751,000 212,808...
A comparative statement of financial position for Whispering Winds Corporation follows: WHISPERING WINDS CORPORATION Statement of...
A comparative statement of financial position for Whispering Winds Corporation follows: WHISPERING WINDS CORPORATION Statement of Financial Position December 31 Assets 2020 2019 Cash $74,100 $33,060 Accounts receivable 99,180 67,260 Inventory 151,620 92,340 FV-OCI investments in shares 71,820 95,760 Land 74,100 117,420 Equipment 444,600 490,200 Accumulated depreciation—equipment (133,380 ) (98,040 ) Goodwill 141,360 197,220         Total $923,400 $995,220 Liabilities and Shareholders’ Equity Accounts payable $13,680 $58,140 Dividends payable 17,100 36,480 Notes payable 250,800 381,900 Common shares 302,100 142,500 Retained earnings 328,320...
Comparative balance sheet accounts of Whispering Inc. are presented below. WHISPERING INC. COMPARATIVE BALANCE SHEET ACCOUNTS...
Comparative balance sheet accounts of Whispering Inc. are presented below. WHISPERING INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 Debit Accounts 2017 2016 Cash $42,400 $33,500 Accounts Receivable 70,200 59,800 Inventory 29,700 24,100 Equity investments 22,500 38,100 Machinery 30,100 18,900 Buildings 67,000 55,700 Land 7,400 7,400 $269,300 $237,500 Credit Accounts Allowance for Doubtful Accounts $2,200 $1,600 Accumulated Depreciation—Machinery 5,600 2,200 Accumulated Depreciation—Buildings 13,600 9,000 Accounts Payable 35,300 24,600 Accrued Payables 3,400 2,600 Long-Term Notes...
The comparative balance sheets for Metlock, Inc. as of December 31 are presented below. Metlock, Inc....
The comparative balance sheets for Metlock, Inc. as of December 31 are presented below. Metlock, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 66,640 $ 44,100 Accounts receivable 49,000 56,840 Inventory 148,421 139,160 Prepaid expenses 14,974 20,580 Land 142,100 127,400 Buildings 196,000 196,000 Accumulated depreciation—buildings (58,800 ) (39,200 ) Equipment 220,500 151,900 Accumulated depreciation—equipment (44,100 ) (34,300 ) Total $734,735 $662,480 Liabilities and Stockholders’ Equity Accounts payable $ 43,835 $ 35,280 Bonds payable 294,000 294,000 Common stock,...
Problem 23-06 Comparative balance sheet accounts of Whispering Inc. are presented below. WHISPERING INC. COMPARATIVE BALANCE...
Problem 23-06 Comparative balance sheet accounts of Whispering Inc. are presented below. WHISPERING INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $41,900 $34,100 Accounts Receivable 70,400 60,300 Inventory 29,900 24,000 Equity investments 22,100 38,300 Machinery 30,200 18,900 Buildings 67,900 56,800 Land 7,400 7,400 $269,800 $239,800 Credit Accounts Allowance for Doubtful Accounts $2,200 $1,500 Accumulated Depreciation—Machinery 5,600 2,200 Accumulated Depreciation—Buildings 13,400 8,900 Accounts Payable 35,300 24,700 Accrued Payables 3,400 2,600...
Carr Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet...
Carr Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet Ending Balance Beginning Balance Cash and cash equivalents $ 3,090 $ 24,610 Accounts receivable 88,000 76,680 Inventory 39,800 47,940 Prepaid expenses 9,810 15,750 Long-term investments 254,400 210,000 Property, plant, and equipment 540,750 504,000 Less accumulated depreciation 329,600 312,700 Total assets $ 606,250 $ 566,280 Accounts payable $ 9,540 $ 25,500 Accrued liabilities 24,480 17,850 Income taxes payable 53,400 48,300 Bonds payable 176,000 216,000 Common...
Carr Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet...
Carr Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet Ending Balance Beginning Balance Cash and cash equivalents $ 3,270 $ 25,300 Accounts receivable 88,800 78,100 Inventory 39,800 49,820 Prepaid expenses 9,630 15,450 Long-term investments 247,200 216,000 Property, plant, and equipment 566,500 523,200 Less accumulated depreciation 345,600 324,500 Total assets $ 609,600 $ 583,370 Accounts payable $ 9,720 $ 25,750 Accrued liabilities 25,440 18,190 Income taxes payable 51,900 50,600 Bonds payable 171,200 206,000 Common...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT