Refer the following table. Cash Tia's Trampolines Inc. Comparative Balance Sheet Information November 30 (millions of $) Accounts receivable (net) Plant and equipment (net) Accounts payable Long-term notes payable Preferred shares 2023 $ 205 280 2022 $ 593 2021 $ 618 317 136 1,446 1,530 1,826 60 136 224 965 1,285 1,445 165 165 165 645 645 645 96 209 101 Connon shares Retained earnings The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year. Net sales Tia's Trampolines Inc. Income Statement For Year Ended November 30 (millions of $) Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Interest expense Income tax expense Profit 2023 2022 2021 $4,020 $6,340 $6,660 2,769 4,393 4,617 $1,251 $1,947 $2,843 $ 306 $ 306 $ 306 402 1,258 1,454 708 1,564 1,760 $ 543 $ 383 $ 283 68 157 87 109 97 74 $ 318 $187 $112 Required: Calculate Tia's Trampolines Inc.'s profitability ratios for 2023. Also Identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the Industry average. (Round the final answer to 2 decimal places. Input all positive values.) Industry Average F/U 1. Profit margin 2 Gross profit ratio 2023 7.91 % 31.12 % 14 % Unfavourable 18 % Favourable % 3. Return on total assets 4 Return on common shareholders' equity 5. Book value per common share $ 2.32 $ 61 6. Book value per preferred share 7. Earnings per share 20% Unfavourable 32.7 % Favourable Unfavourable 8.63 $ 15.00 Unfavourable $ 1.79 Unfavourable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Refer the following table.
Cash
Tia's Trampolines Inc.
Comparative Balance Sheet Information
November 30
(millions of $)
Accounts receivable (net)
Plant and equipment (net)
Accounts payable
Long-term notes payable
Preferred shares
2023
$ 205
280
2022
$ 593
2021
$ 618
317
136
1,446
1,530
1,826
60
136
224
965
1,285
1,445
165
165
165
645
645
645
96
209
101
Connon shares
Retained earnings
The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding
during each year.
Net sales
Tia's Trampolines Inc.
Income Statement
For Year Ended November 30
(millions of $)
Cost of goods sold
Gross profit
Operating expenses:
Depreciation expense
Other expenses
Total operating expenses
Profit from operations
Interest expense
Income tax expense
Profit
2023 2022 2021
$4,020 $6,340 $6,660
2,769 4,393 4,617
$1,251 $1,947 $2,843
$ 306 $ 306 $ 306
402 1,258 1,454
708 1,564 1,760
$ 543 $ 383 $ 283
68
157
87
109
97
74
$ 318 $187 $112
Required:
Calculate Tia's Trampolines Inc.'s profitability ratios for 2023. Also Identify whether each of Tia's Trampolines Inc's profitability ratios
compares favourably or unfavourably to the Industry average. (Round the final answer to 2 decimal places. Input all positive values.)
Industry
Average
F/U
1. Profit margin
2 Gross profit ratio
2023
7.91 %
31.12 %
14 % Unfavourable
18 % Favourable
%
3. Return on total assets
4 Return on common shareholders' equity
5. Book value per common share
$
2.32
$
61
6. Book value per preferred share
7. Earnings per share
20% Unfavourable
32.7 % Favourable
Unfavourable
8.63
$ 15.00 Unfavourable
$ 1.79
Unfavourable
Transcribed Image Text:Refer the following table. Cash Tia's Trampolines Inc. Comparative Balance Sheet Information November 30 (millions of $) Accounts receivable (net) Plant and equipment (net) Accounts payable Long-term notes payable Preferred shares 2023 $ 205 280 2022 $ 593 2021 $ 618 317 136 1,446 1,530 1,826 60 136 224 965 1,285 1,445 165 165 165 645 645 645 96 209 101 Connon shares Retained earnings The preferred shares are $0.50, non-cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year. Net sales Tia's Trampolines Inc. Income Statement For Year Ended November 30 (millions of $) Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Interest expense Income tax expense Profit 2023 2022 2021 $4,020 $6,340 $6,660 2,769 4,393 4,617 $1,251 $1,947 $2,843 $ 306 $ 306 $ 306 402 1,258 1,454 708 1,564 1,760 $ 543 $ 383 $ 283 68 157 87 109 97 74 $ 318 $187 $112 Required: Calculate Tia's Trampolines Inc.'s profitability ratios for 2023. Also Identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the Industry average. (Round the final answer to 2 decimal places. Input all positive values.) Industry Average F/U 1. Profit margin 2 Gross profit ratio 2023 7.91 % 31.12 % 14 % Unfavourable 18 % Favourable % 3. Return on total assets 4 Return on common shareholders' equity 5. Book value per common share $ 2.32 $ 61 6. Book value per preferred share 7. Earnings per share 20% Unfavourable 32.7 % Favourable Unfavourable 8.63 $ 15.00 Unfavourable $ 1.79 Unfavourable
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