The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earningst Year 2 Year 1 $367,950 $310,000 312,178 262,000 55,780 48,000 37,410 33,400 18,370 6,310 14,600 4,800 $ 12,060 $ 9,800 $ 4,270 $ 8,400 16,830 48,350 29,810 $ 99,260 $ 11,820 40,480 24,000 22,960 20,000 42,000 25,000 $ 95,400 $14,200 39,200 24,000 18,000 Required: 1 Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, Le., 0.1243 should be entered as 12.43.) Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Eamings before income taxes Income tax expense Statement of financial position Net earnings Cash Accounts receivable (ne) Inventory Property, plant, and equipment() $ Increase (Decrease) Year 2 over Year 1 Percentage $ 99,260 $ 95,400 Current liabilities Long-term debt Common shares Retained eamings "One-third was credit sales. *During Year 2, cash dividends amounting to $7,100 were declared and paid. 2-a. By what amount did working capital change? Change in working capital 2-b. What was the percentage change in the income tax rate? (Round Intermediate calculations and final answer to 2 decimal places.) Percentage change 2-c. What was the amount of cash collections from customers in year 2? Amount of cash info 2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal place.) Percentage change

The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earningst Year 2 Year 1 $367,950 $310,000 312,178 262,000 55,780 48,000 37,410 33,400 18,370 6,310 14,600 4,800 $ 12,060 $ 9,800 $ 4,270 $ 8,400 16,830 48,350 29,810 $ 99,260 $ 11,820 40,480 24,000 22,960 20,000 42,000 25,000 $ 95,400 $14,200 39,200 24,000 18,000 Required: 1 Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, Le., 0.1243 should be entered as 12.43.) Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Eamings before income taxes Income tax expense Statement of financial position Net earnings Cash Accounts receivable (ne) Inventory Property, plant, and equipment() $ Increase (Decrease) Year 2 over Year 1 Percentage $ 99,260 $ 95,400 Current liabilities Long-term debt Common shares Retained eamings "One-third was credit sales. *During Year 2, cash dividends amounting to $7,100 were declared and paid. 2-a. By what amount did working capital change? Change in working capital 2-b. What was the percentage change in the income tax rate? (Round Intermediate calculations and final answer to 2 decimal places.) Percentage change 2-c. What was the amount of cash collections from customers in year 2? Amount of cash info 2-d. What was the change for the gross profit margin ratio? (Round Intermediate calculations and final answer to 1 decimal place.) Percentage change

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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