Question
In: Accounting
Use the following selected data from Business Solutions’s income statement for the three months ended March...
Use the following selected data from Business Solutions’s income statement for the three months ended March 31, 2020, and from its March 31, 2020, balance sheet to complete the requirements. Computer services revenue $ 25,665 Net sales (of goods) 21,804 Total sales and revenue 47,469 Cost of goods sold 13,292 Net income 20,544 Quick assets 91,052 Current assets 95,328 Total assets 120,496 Current liabilities 1,095 Total liabilities 1,095 Total equity 119,401 Required: 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. 2. Compute the current ratio and acid-test ratio. 3. Compute the debt ratio and equity ratio. 4. What percent of its assets are current? What percent are long term?
Compute the current ratio and acid-test ratio. (Round your answers to 1 decimal place.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Use the following selected data from Business Solutions’s income statement for the three months ended March...
Use the following selected data from Business Solutions’s income
statement for the three months ended March 31, 2018, and from its
March 31, 2018, balance sheet to complete the requirements below:
computer services revenue, $29,277; net sales (of goods), $18,666;
total sales and revenue, $47,943; cost of goods sold, $14,366; net
income, $20,739; quick assets, $88,424; current assets, $95,344;
total assets, $121,624; current liabilities, $870; total
liabilities, $870; and total equity, $120,754.
Required: A: Compute the gross margin ratio
(both...
Use the following selected data from Business Solutions’s income statement for the three months ended March...
Use the following selected data from Business Solutions’s income
statement for the three months ended March 31, 2020, and from its
March 31, 2020, balance sheet to complete the
requirements.
Computer services revenue
$
29,179
Net sales (of
goods)
18,528
Total sales and
revenue
47,707
Cost of goods
sold
12,118
Net income
19,893
Quick
assets
90,848
Current
assets
95,664
Total
assets
121,072
Current
liabilities
855
Total
liabilities
855
Total
equity
120,217
Required:
1. Compute the gross margin ratio (both with...
Use the following selected data from Business Solutions’s income statement for the three months ended March...
Use the following selected data from Business Solutions’s income
statement for the three months ended March 31, 2020, and from its
March 31, 2020, balance sheet to complete the
requirements.
Computer services revenue
$
27,646
Net sales (of goods)
21,924
Total sales and revenue
49,570
Cost of goods sold
13,078
Net income
18,525
Quick assets
91,160
Current assets
96,032
Total assets
123,312
Current liabilities
940
Total liabilities
940
Total equity
122,372
Required:
1. Compute the gross margin ratio (both with...
Use the following selected data from Business Solutions’s income statement for the three months ended March...
Use the following selected data from Business Solutions’s income
statement for the three months ended March 31, 2020, and from its
March 31, 2020, balance sheet to complete the requirements.
Computer services revenue
$
26,771
Net sales (of goods)
20,100
Total sales and revenue
46,871
Cost of goods sold
15,752
Net income
20,277
Quick assets
91,044
Current assets
97,392
Total assets
118,776
Current liabilities
745
Total liabilities
745
Total equity
118,031
Required:
1. Compute the gross margin ratio (both with...
A. Use the following selected balance sheet and income statement data for Mattel Inc. (in $...
A. Use the following selected balance sheet and income statement
data for Mattel Inc. (in $ thousands) to compute a) return on
equity, b) profit margin (PM), c) asset turnover (AT), and d)
financial leverage (FL) for fiscal 2016. Show that ROE = PM × AT ×
FL. (in thousands) 2016 2015 Net sales $5,456,650 $5,702,613
Operating income 619,233 640,922 Interest expense 95,118 85,270 Net
income 318,022 369,416 Total assets 6,493,794 6,535,143 Total
liabilities 4,086,012 3,901,889
The following is the income statement for Daisy’s Day Care Limited for the month ended March...
The following is the income statement for Daisy’s Day Care
Limited for the month ended March 31, 2020: Daisy’s Day Care
Limited Income Statement Month Ended March 31, 2020
Revenue $ 20,000
Expenses: Food 6,000
Heat and lights 800
Office Supplies 200
Childcare supplies 1,000
Wages 8,000
Total expenses 16,000
Operating income $ 4,000
20% of the childcare supplies and 25% of the wages are fixed
while the remaining amounts are variable. 100% of the food expense
is variable.
Required:...
Selected ledger account balances for Business Solutions follow. For Three Months Ended December 31, 2019 For...
Selected ledger account balances for Business Solutions
follow.
For Three Months
Ended December 31, 2019
For Three Months
Ended March 31, 2020
Office equipment
$
7,900
$
7,900
Accumulated depreciation—Office equipment
395
790
Computer equipment
18,000
18,000
Accumulated depreciation—Computer equipment
1,125
2,250
Total revenue
32,034
44,800
Total assets
82,860
121,668
Required:
1. Assume that Business Solutions does not acquire
additional office equipment or computer equipment in 2020. Compute
amounts for the year ended December 31, 2020, for
Depreciation expense—Office equipment...
Selected ledger account balances for Business Solutions follow. For Three Months Ended December 31, 2019 For...
Selected ledger account balances for Business Solutions
follow.
For Three Months
Ended December 31, 2019
For Three Months
Ended March 31, 2020
Office equipment
$
8,000
$
8,000
Accumulated depreciation—Office equipment
400
800
Computer equipment
20,000
20,000
Accumulated depreciation—Computer equipment
1,250
2,500
Total revenue
31,284
44,000
Total assets
83,460
120,268
Required:
1. Assume that Business Solutions does not acquire
additional office equipment or computer equipment in 2020. Compute
amounts for the year ended December 31, 2020, for
Depreciation expense—Office equipment...
Budgeted income statement and supporting budgets for three months Newport Inc. gathered the following data for...
Budgeted income statement and supporting budgets for three
months
Newport Inc. gathered the following data for use in developing
the budgets for the first quarter (June, July, August) of its
fiscal year:
a. Estimated sales at $36 per unit:
June
300,000
units
July
400,000
units
August
500,000
units
September
500,000
units
b. Estimated finished goods inventories:
May 31
16,000
units
June 30
5%
of next month’s sales
July 31
5%
of next month’s sales
August 31
5%
of next month’s...
Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for...
Budgeted income statement and supporting budgets for three
months
Bellaire Inc. gathered the following data for use in developing
the budgets for the first quarter (January, February, March) of its
fiscal year:
a. Estimated sales at $125 per unit:
January
25,000
units
February
30,000
units
March
45,000
units
April
50,000
units
b. Estimated finished goods inventories:
January 1
2,000
units
January 31
10%
of next month’s sales
February 28
10%
of next month’s sales
March 31
10%
of next month’s...
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