Question
In: Accounting
Mariner, Inc. Comparative Income Statement Years Ended December 31, 2019 and 2018 Dollars in thousands &
Mariner, Inc.
Comparative Income Statement
Years Ended December 31, 2019 and 2018
Dollars in thousands
2019 2018 2017
Net Sales Revenue $177,000 $154,000
Cost of Goods Sold 94,000 87,500
Selling and Administrative Expenses 47,000 39,500
Interest Expense 8,500 11,500
Income Tax Expense 12,500 9,500
Net Income $15,000 $6,000
Additional data:
Total Assets $202,000 $191,000 $171,000
Common Stockholders' Equity 94,500 86,500 80,000
Preferred Dividends 2,000 2,000 0
Common Shares Outstanding During the Year 25,000 25,000 20,000
|
1. |
Calculate the profit margin ratio for 2019 and 2018. |
|
2. |
Calculate the rate of return on total assets for 2019 and 2018. |
|
3. |
Calculate the asset turnover ratio for 2019 and 2018. |
|
4. |
Calculate the rate of return on common stockholders' equity for 2019 and 2018. |
|
5. |
Calculate the earnings per share for 2019 and 2018. |
|
6. |
Calculate the 2019 dividend payout on common stock. Assume dividends per share for common stock are equal to $0.20 per share. |
|
7. |
Did the company's operating performance improve or deteriorate during 2019? |
Solutions
Expert Solution
| 2019 | 2018 | |||||
| 1 | Profit margin ratio | Net Income / Net Sales Revenue | 15,000 / 177,000 | 8.47% | 6,000 / 154,000 | 3.90% |
| 2 | Return on total assets | Net Income / Average Total Assets | 15,000 / (202,000 + 191,000) / 2 | 7.63% | 6,000 / (191,000 + 171,000) / 2 | 3.31% |
| 3 | Asset turnover ratio | Net Sales Revenue / Average Total Assets | 177,000 / (202,000 + 191,000) / 2 | 0.90 | 154,000 / (191,000 + 171,000) / 2 | 0.85 |
| 4 | Return on stockholders' equity | Net Income / Average Equity | 15,000 / (94,500 + 86,500) / 2 | 16.57% | 6.000 / (86,500 + 80,000) / 2 | 7.00% |
| 5 | Earnings per share | Net Income / Number of shares | 15,000 / 25,000 | 0.60 | 6,000 / 25,000 | 0.24 |
| 6 | Dividend payout | Dividend / Earning per share | 0.20 / 0.60 | 33.33% | ||
| 7 | Did company's operating performance improveor deteriorate? | IMPROVE | ||||
ekkarill92 answered 1 year agoRelated Solutions
KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018...
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2019, 2018, and
2017
2019
2018
2017
Sales
$
446,549
$
342,093
$
237,400
Cost of goods sold
268,822
213,808
151,936
Gross profit
177,727
128,285
85,464
Selling expenses
63,410
47,209
31,337
Administrative expenses
40,189
30,104
19,704
Total expenses
103,599
77,313
51,041
Income before taxes
74,128
50,972
34,423
Income tax expense
13,788
10,449
6,988
Net income
$
60,340
$
40,523
$
27,435
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2019, 2018,...
KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018...
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2019, 2018, and
2017
2019
2018
2017
Sales
$
378,269
$
289,785
$
201,100
Cost of goods sold
227,718
181,116
128,704
Gross profit
150,551
108,669
72,396
Selling expenses
53,714
39,990
26,545
Administrative expenses
34,044
25,501
16,691
Total expenses
87,758
65,491
43,236
Income before taxes
62,793
43,178
29,160
Income tax expense
11,679
8,852
5,919
Net income
$
51,114
$
34,326
$
23,241
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2019, 2018,...
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Motor Speedways Inc., owner and operator of
several major motor speedways.
1
Current Year
Previous Year
2
Revenues:
3
Admissions
$93,991.00
$106,074.00
4
Event-related revenue
142,204.00
134,460.00
5
NASCAR broadcasting revenue
189,930.00
179,280.00
6
Other operating revenue
60,875.00
78,186.00
7
Total revenue
$487,000.00
$498,000.00
8
Expenses and other:
9
Direct expense of events
$96,913.00
$100,098.00
10
NASCAR purse...
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Speedway Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
1
Current Year
Previous Year
2
Revenues:
3
Admissions
$116,034.00
$130,239.00
4
Event-related revenue
151,562.00
163,621.00
5
NASCAR broadcasting revenue
192,662.00
185,394.00
6
Other operating revenue
29,902.00
26,951.00
7
Total revenue
$490,160.00
$506,205.00
8
Expenses and other:...
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Calvin Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
Current Year
Previous Year
Revenues:
Admissions
$97,412
$110,592
Event-related revenue
138,663
145,920
NASCAR broadcasting revenue
179,417
169,472
Other operating revenue
81,508
86,016
Total revenue
$497,000
$512,000
Expenses and other:
Direct expense of events
$103,873
$104,960
NASCAR purse...
KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2018, 2017, and 2016 2018 2017...
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2018, 2017, and 2016
2018
2017
2016
Sales
$
382,784
$
293,244
$
203,500
Cost of goods sold
230,436
186,210
130,240
Gross profit
152,348
107,034
73,260
Selling expenses
54,355
40,468
26,862
Administrative expenses
34,451
25,805
16,891
Total expenses
88,806
66,273
43,753
Income before taxes
63,542
40,761
29,507
Income tax expense
11,819
8,356
5,990
Net income
$
51,723
$
32,405
$
23,517
Complete the below table to calculate income statement data...
1. Terry company's 2019 income statement and comparative balance sheets at December 31 of 2018 and...
1. Terry company's 2019 income
statement and comparative balance sheets at December 31 of 2018 and
2019are shown.
Terry Company
Income Statement
For the year Ended
December 31, 2019
Sales
$ 390,000
Cost of Goods
Sold
235,000
_______
Gross
Profit
$
155,000
Wages
Expenses
$ 63,000
Depreciation
Expense
14,000
Other Operating
Expenses
26,000
Income Tax
Expense
17,000
120,000
______ ________
Net
Income
$ 35,000
T Terry
Company
Balance Sheets
Dec.
31,
Dec. 31,
...
The income statement of Packer Inc. for the year ended December 31, 2018, reported the following...
The income statement of Packer Inc. for the year ended December 31,
2018, reported the following condensed information:
Revenue from fees.....................................
$585,000
Operating
expenses...................................
340,000
Income from
operations..............................
245,000
Income tax
expense...................................
61,250
Net
income.................................................
$183,750
Packer's statement of financial position contained the
following comparative data at December 31:
2018 2017
Accounts
receivable...................................
$52,500
$45,000
Accounts
payable.......................................
34,000
41,000
Income taxes
payable.................................
5,500
3,000
The corporation has no depreciable assets. Accounts
payable pertain to operating expenses.
Instructions:
Using the direct...
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the...
Vertical Analysis of Income Statement
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Calvin Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
Current Year
Previous Year
Revenues:
Admissions
$92,316
$104,544
Event-related revenue
135,648
131,648
NASCAR broadcasting revenue
179,922
170,368
Other operating revenue
63,114
77,440
Total revenue
$471,000
$484,000
Expenses and other:
Direct expense of...
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the...
Vertical Analysis of Income Statement The following comparative
income statement (in thousands of dollars) for the two recent
fiscal years was adapted from the annual report of Calvin
Motorsports, Inc., owner and operator of several major motor
speedways, such as the Atlanta, Texas, and Las Vegas Motor
Speedways. Current Year Previous Year Revenues: Admissions $94,400
$107,580 Event-related revenue 138,768 147,189 NASCAR broadcasting
revenue 169,448 160,881 Other operating revenue 69,384 73,350 Total
revenue $472,000 $489,000 Expenses and other: Direct expense of...
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