Question
In: Accounting
Elements of the Income Statement for Hofstadter Experiments Ltd. follow: 2020 2019 Net Sales (all credit)...
Elements of the Income Statement for Hofstadter Experiments Ltd. follow:
|
2020 |
2019 |
|
|
Net Sales (all credit) |
$1,498,000 |
$1,200,000 |
|
Cost of goods sold |
1,043,000 |
820,000 |
|
Net Income |
91,000 |
76,500 |
Highlights of the Balance Sheet:
|
2020 |
2019 |
|
|
Cash |
$90,500 |
$64,700 |
|
Temporary Investments |
75,000 |
60,000 |
|
Accounts receivable (net) |
115,000 |
120,000 |
|
Inventories |
264,000 |
283,000 |
|
Prepaid expenses |
5,500 |
5,300 |
|
Total current liabilities |
210,000 |
243,000 |
|
Total liabilities |
310,000 |
443,000 |
|
Total common shareholders’ equity |
829,500 |
787,500 |
Required: (Round all answers to 2 decimal places).
- Calculate the gross profit rate for both 2019 and 2020.
- Did the gross profit rate improve or worsen from 2019 to 2020?
- What was the Accounts Receivable Turnover ratio for 2020?
- Explain what Accounts Receivable Turnover is in your own words.
- What was the Return on Common Shareholders’ Equity for 2020?
- What was the Current Ratio for 2020?
- Is the current ratio calculated in f) adequate?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Elements of the Income Statement for Hofstadter Experiments Ltd. follow: 2020 2019 Net Sales (all credit)...
Elements of the Income Statement for Hofstadter Experiments Ltd.
follow:
2020
2019
Net Sales (all credit)
$1,498,000
$1,200,000
Cost of goods sold
1,043,000
820,000
Net Income
91,000
76,500
Highlights of the Balance Sheet:
2020
2019
Cash
$90,500
$64,700
Temporary Investments
75,000
60,000
Accounts receivable (net)
115,000
120,000
Inventories
264,000
283,000
Prepaid expenses
5,500
5,300
Total current liabilities
210,000
243,000
Total liabilities
310,000
443,000
Total common shareholders’ equity
829,500
787,500
Required: (Round all answers
to 2 decimal places).
Calculate the gross...
THE CULLUMBER COMPANY LTD. Income Statement Year Ended December 31 2021 2020 Net sales $1,779,530 $1,819,610...
THE CULLUMBER COMPANY LTD.
Income Statement
Year Ended December 31
2021
2020
Net sales
$1,779,530
$1,819,610
Cost of goods sold
1,091,290
1,028,920
Gross profit
688,240
790,690
Operating expenses
521,960
422,530
Profit from operations
166,280
368,160
Interest expense
25,650
18,630
Profit before income tax
140,630
349,530
Income tax expense
42,189
104,859
Profit
$98,441
$244,671
THE CULLUMBER COMPANY LTD.
Balance Sheet
December 31
Assets
2021
2020
Current assets
Cash
$112,631
$67,485
Accounts receivable
102,723
112,506
Inventory
141,460
123,690
Total current assets
356,814...
1. The four major elements of the income statement are: 2. The income statement reveals net...
1. The four major elements of the income statement are:
2. The income statement reveals net earnings (net income) of a
firm for a period of time.
Explain how “net earnings (net income) of a firm for a period of
time” is different from each of the following descriptions:
resources and equities of a firm at a point in time
resources and equities of a firm for a period of time
net earnings (net income) of a firm at a...
Income Statement 2019 Common Size Income Statement Details 2019 2018 Sales 30,000,000 Sales/Sales 100.00% 100.00% Less:...
Income Statement 2019
Common Size Income Statement
Details
2019
2018
Sales
30,000,000
Sales/Sales
100.00%
100.00%
Less: Cost of Goods Sold
21,000,000
Cost of Goods Sold/Sales
70.00%
65.90%
Gross Profits
9,000,000
Gross Profits/Sales
30.00%
34.10%
Less: Operating Expenses
Less: Operating Expenses
Selling Expense
3,000,000
Selling Expense/Sales
10.00%
12.70%
General and Administrative Expenses
1,800,000
General and Administrative Expenses/Sales
6.00%
6.30%
Lease Expense
200,000
Lease Expenses/Sales
0.67%
0.60%
Depreciation Expense
1,000,000
Depreciation Expense/Sales
3.33%
3.60%
Total Operating Expense
6,000,000
Total Operating Expense/Sales
20.00%...
1. Given: 2019 Sales = $213,346 2020 Sales = $292,969 2019 Operating Income...
1.
Given:
2019 Sales = $213,346
2020 Sales = $292,969
2019 Operating Income =
$106,282
2020 Operating Income =
$179,533
2019 Net Income = $59,413
2020 Net Income = $81,936
Calculate DOL (Enter your answer with 2 decimal places.)
2. Total variable costs are $13,137, sales $57,179, and fixed
costs $15,517. Calculate DOL. (Enter your answer with 2 decimal
places)
3. Calculate the effective annual interest rate of foregoing the
discount and paying on...
Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales $1,384 Less: Cost of...
Flamingo, Inc.
2019 statement of comprehensive income
($ in millions)
Net sales
$1,384
Less: Cost of goods sold
605
Less: Depreciation
180
Earnings before interest and taxes
599
Less: Interest paid
80
Taxable income
519
Less: Taxes
156
Net income
$363
Addition to retained earnings
$254
Dividends paid
109
Flamingo, Inc.
2018 and 2019 Statement of financial
positions
($ in millions)
2018
2019
2018
2019
Cash
$100
$121
Accounts payable
$400
$350
Accounts rec.
350
425
Notes payable
390
370...
Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales $1,384 Less: Cost of...
Flamingo, Inc.
2019 statement of comprehensive income
($ in millions)
Net sales
$1,384
Less: Cost of goods sold
605
Less: Depreciation
180
Earnings before interest and taxes
599
Less: Interest paid
80
Taxable income
519
Less: Taxes
156
Net income
$363
Addition to retained earnings
$254
Dividends paid
109
Unit 2 Exercise Questions
Flamingo, Inc.
2018 and 2019 Statement of financial
positions
($ in millions)
2018
2019
2018
2019
Cash
$100
$121
Accounts payable
$400
$350
Accounts rec.
350
425...
SportsNet Corporation’s recent comparative balance sheet and income statement follow: Balance Sheets, December 31 2019 2020...
SportsNet Corporation’s recent comparative balance sheet
and income statement follow:
Balance Sheets, December 31
2019
2020
Assets
Cash
$ 51,200
$102,400
Accounts receivable
179,200
166,400
Allowance for doubtful accounts
(19,200)
(16,000)
Other receivables (nontrade)
9,600
6,400
Inventory
96,000
102,400
Equipment
256,000
246,400
Accumulated depreciation
(19,200)
(16,000)
Intangibles, net
176,000
169,600
Total assets
$729,600
$761,600
Liabilities and Stockholders' Equity
Accounts payable
$160,000
$192,000
Income taxes payable
224,000
160,000
Interest payable
6,400
3,200
Bonds payable
102,400
—
Discount on bonds payable
(6,400)...
SAXTON COMPANY Income Statement For the Year Ended December 31, 2009 Sales (all on credit) ……………………………………………………………...
SAXTON COMPANY
Income Statement For the Year Ended December 31, 2009
Sales (all on credit) …………………………………………………………… $ 4,000,000
Cost of Goods Sold…………………………………………………………………3,000,000
Gross Profit………………………………………………………………………….$ 1,000,000
Selling and Administrative Expenses……………………………………. 450,000
Operating Profit ……………………………………………………………………$ 550,000
Interest Expense…………………………………………………………………… 50,000
Extraordinary Loss…………………………………………………………………. 200,000
Earnings Before Taxes……………………………………………………………$ 300,000
Income Taxes (33%)………………………………………………………………. 100,000
Net Income…………………………………………………………………………….$ 200,000
SAXTON COMPANY
Balance Sheet As of December 31, 2009
Assets Cash…………………………………………………………………………… $ 30,000
Accounts Receivable………………………………………………….. 350,000
Marketable Securities ……………………………………………….. 50,000
Inventory……………………………………………………………………. 370,000
Total Current Assets……………………………………………………. $ 800,000
Net Plant...
Adelphi Company has budgeted activity for March to reflect net income $165,000. All sales are credit...
Adelphi Company has budgeted activity for March to
reflect net income $165,000. All sales are credit sales.
Receivables are planned to increase (decrease -) by $27,000
payables to increase (decrease -) by $-17,000 and Depreciation
Expense is $56,000. Use this information to determine how much cash
will increase (decrease) during the month of March. (Decreases in
accounts receivable or accounts payable will have a negative sign
in front of number. Round & enter final answer to the nearest
whole dollar.)
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