Question
In: Accounting
Liz Raiborn Inc. has the following financial results for the years 2019 through 2021 for its...
Liz Raiborn Inc. has the following financial results for the years 2019 through 2021 for its three regional divisions:
| 2019 | 2020 | 2021 | |||||||
| Revenue | |||||||||
| Southwest | $ | 14,875 | $ | 21,975 | $ | 25,975 | |||
| Midwest | 6,675 | 6,975 | 7,175 | ||||||
| Southeast | 12,375 | 12,975 | 13,275 | ||||||
| Total | $ | 33,925 | $ | 41,925 | $ | 46,425 | |||
| Net Operating Income | |||||||||
| Southwest | $ | 1,075 | $ | 1,175 | $ | 1,325 | |||
| Midwest | 1,225 | 1,575 | 1,525 | ||||||
| Southeast | 975 | 1,175 | 1,575 | ||||||
| Total | $ | 3,275 | $ | 3,925 | $ | 4,425 | |||
| Average Total Assets | |||||||||
| Southwest | $ | 13,975 | $ | 14,175 | $ | 16,775 | |||
| Midwest | 4,675 | 4,175 | 4,175 | ||||||
| Southeast | 5,275 | 5,575 | 5,575 | ||||||
| Total | $ | 23,925 | $ | 23,925 | $ | 26,525 | |||
Required:
Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI) for each division and also for the firm as a whole for each of the three years 2019, 2020, and 2021. (Note: Due to rounding your percentages, the totals for the firm might not be the actual total of the individual divisions.) (Round "Asset turnover (AT)" answers to 3 decimal places and other answers to 1 decimal place.)
Solutions
Expert Solution
As per the given Question
| Answer | ||||||||||
| 2019 | 2020 | 2021 | 2019 | 2020 | 2021 | |||||
| Revenue | Return on sales {ROS) | |||||||||
| Southwest | $14,875.00 | $21,975.00 | $25,975.00 | Southwest | 7.2% | 5.3% | 5.1% | |||
| Midwest | $6,675.00 | $6,975.00 | $7,175.00 | Midwest | 18.4% | 22.6% | 21.3% | |||
| Southeast | $12,375.00 | $12,975.00 | $13,275.00 | Southeast | 7.9% | 9.1% | 11.9% | |||
| Total | $33,925.00 | $41,925.00 | $46,425.00 | Firm | 9.7% | 9.4% | 9.5% | |||
| Net Operating Income | ||||||||||
| Southwest | $1,075.00 | $1,175.00 | $1,325.00 | Asset Turnover (AT) | ||||||
| Midwest | $1,225.00 | $1,575.00 | $1,525.00 | Southwest | 1.064 | 1.550 | 1.548 | |||
| Southeast | $975.00 | $1,175.00 | $1,575.00 | Midwest | 1.428 | 1.671 | 1.719 | |||
| Total | $3,275.00 | $3,925.00 | $4,425.00 | Southeast | 2.346 | 2.327 | 2.381 | |||
| Average Total Assets | Firm | 1.418 | 1.752 | 1.750 | ||||||
| Southwest | $13,975.00 | $14,175.00 | $16,775.00 | |||||||
| Midwest | $4,675.00 | $4,175.00 | $4,175.00 | Return On Investment (ROI) | ||||||
| Southeast | $5,275.00 | $5,575.00 | $5,575.00 | Southwest | 7.7% | 8.3% | 7.9% | |||
| Total | $23,925.00 | $23,925.00 | $26,525.00 | Midwest | 26.2% | 37.7% | 36.5% | |||
| Southeast | 18.5% | 21.1% | 28.3% | |||||||
| Return on sales = Net Operating Income / Revenue | Firm | 13.7% | 16.4% | 16.7% | ||||||
| Asset Turnover = Revenue / Average Total assets | ||||||||||
| Return on investment = Net operating Income / Average Total assets | ||||||||||
Thank you for the Question......kindly rate.........it helps me a lot
ekkarill92 answered 1 year agoRelated Solutions
Liz Raiborn Inc. has the following financial results for the years 2019 through 2021 for its...
Liz Raiborn Inc. has the following financial results for the
years 2019 through 2021 for its three regional divisions:
2019
2020
2021
Revenue
Southwest
$
14,900
$
22,000
$
26,000
Midwest
6,700
7,000
7,200
Southeast
12,400
13,000
13,300
Total
$
34,000
$
42,000
$
46,500
Net Operating Income
Southwest
$
1,100
$
1,200
$
1,350
Midwest
1,250
1,600
1,550
Southeast
1,000
1,200
1,600
Total
$
3,350
$
4,000
$
4,500
Average Total Assets
Southwest
$
14,000
$
14,200
$
16,800...
Fred Inc. has the following financial results for the years 2019 through 2021 for its three...
Fred Inc. has the following financial results for the years 2019
through 2021 for its three regional divisions:
2019
2020
2021
Revenue
Southwest
$
14,550
$
21,650
$
25,650
Midwest
6,350
6,650
6,850
Southeast
12,050
12,650
12,950
Total
$
32,950
$
40,950
$
45,450
Net Operating Income
Southwest
$
750
$
850
$
1,000
Midwest
900
1,250
1,200
Southeast
650
850
1,250
Total
$
2,300
$
2,950
$
3,450
Average Total Operating Assets
Southwest
$
13,650
$
13,850
$
16,450...
Marimarsh Corporation reported the following pretax financial income (loss) for the years 2019 to 2021. 2019...
Marimarsh Corporation reported the following pretax financial
income (loss) for the years 2019 to 2021.
2019
$150,000
2020
($400,000)
2021
$200,000
Pretax financial income (loss) and taxable income (loss) were
the same for all years. The applicable tax rates are 30% for 2019,
and 20% for 2020 and 2021.
Instructions:
a) Prepare the journal entry in 2019 to record income tax
expense.
b) Prepare the journal entries in 2020 for the tax effects of
the loss carryforward, assuming that based...
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Accrued expenses
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Corrected 12/31/21 Total Equity will be:
Select one:
a. $78,450
b. $110,300
c. $77,950
d. $110,650
e. $78,650
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Accrued expenses
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Restated 2020 Net Income will be:
Select one:
a. $25,250
b. $26,600
c. $25,200
d. $24,550
e. $25,450
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Unearned Revenues
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Indicate the error in 12/31/21 Retained
Earnings:
Select one:
a. $400 overstated
b. $350 overstated
c. $400 understated
d. $350 understated
e....
The following is selected financial information for Qualmart, Inc. for its year ending January 31, 2021:...
The following is selected financial
information for Qualmart, Inc. for its year ending January 31,
2021:
Retained earnings, January 31, 2020 ……..
$153,790
Stock issuance ………………………………
1,235
Contributed capital, January 31, 2020 …
9,470
Net income ………………………………………
32,560
Other stockholders’ equity changes……
(592)
Dividends ………………………………………….
14,930
Other stockholders’ equity, January 31, 2020
2,463
Prepare a statement of stockholders' equity for 2021 for
Qualmart.
Qualmart, Inc.
Statement of Stockholders' Equity
For Year Ended January 31, 2021
Contributed Capital
Retained Earnings
Other...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement...
Graffiti Advertising, Inc., reported the following financial
statements for the last two years.
2019 Income Statement
Sales
$
565,200
Costs of goods sold
274,025
Selling & administrative
124,733
Depreciation
54,576
EBIT
$
111,866
Interest
19,296
EBT
$
92,570
Taxes
48,137
Net income
$
44,433
Dividends
$
9,600
Addition to retained earnings
$
34,833
GRAFFITI ADVERTISING, INC.
Balance Sheet as of December 31, 2018
Cash
$
13,320
Accounts payable
$
9,504
Accounts receivable
18,994
Notes payable
14,508
Inventory
13,794
Current liabilities...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement...
Graffiti Advertising, Inc., reported the following financial
statements for the last two years.
2019 Income Statement
Sales
$
573,200
Costs of goods sold
273,945
Selling & administrative
124,717
Depreciation
54,560
EBIT
$
119,978
Interest
19,648
EBT
$
100,330
Taxes
40,132
Net income
$
60,198
Dividends
$
11,200
Addition to retained earnings
$
48,998
GRAFFITI ADVERTISING, INC.
Balance Sheet as of December 31, 2018
Cash
$
13,480
Accounts payable
$
9,488
Accounts receivable
18,978
Notes payable
14,492
Inventory
13,810
Current liabilities...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement...
Graffiti Advertising, Inc., reported the following financial
statements for the last two years.
2019 Income Statement
Sales
$
573,200
Costs of goods sold
273,945
Selling & administrative
124,717
Depreciation
54,560
EBIT
$
119,978
Interest
19,648
EBT
$
100,330
Taxes
40,132
Net income
$
60,198
Dividends
$
11,200
Addition to retained earnings
$
48,998
GRAFFITI ADVERTISING, INC.
Balance Sheet as of December 31, 2018
Cash
$
13,480
Accounts payable
$
9,488
Accounts receivable
18,978
Notes payable
14,492
Inventory
13,810
Current liabilities...
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