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Assume a company has 10 million shares of stock outstanding and that its income statement for Year 12 is as follows; based on the above income statement data, the company's operating profit margin and EPS are
15.6% and $2.80
Given the following year 12 balance sheet data for a footwear company: Based on the above figures and the formula for calculating the debt-assets ratio, the company's
0.436
Assume a company's income statement for year 12 is as follows: Based on the above income statement data(assume interest income is zero), the company's interest coverage ratio is
5.00
The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America is to
Build a plant in Latin America and then expand it as may be needed so that the company has sufficient capacity to supply all(or at least most) of the pairs the company intends to try to sell in Latin America
Which one of the following results from the latest decision round are least important in providing guidance to company managers in making their strategic moves and decisions to improve their company's competitiveness and rank among the top-
performing companies in the upcoming decision round?
The dividend data, the credit rating data, the income statement data, and the balance sheet data for each company that are part of the Financial Performance Summary on p.5 of the FIR"
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Related Questions
The following data were taken from the records of Browntree Corporation at
the end of the fiscal year ending December 31, 2020:
Sales revenue
$97,700
Cost of goods sold
Gross profit
S36,160
Wages expense
$11,600
Selling and administrative expenses
Income before income tax
$13,500
Income tax rate
30%
Number of common shares outstanding
5,000
Prepare a multi-step statement of income for the company and calculate the
earnings per share. (Hint: You will need to calculate the missing amounts to
complete the statement of income.) (Round earnings per share to 2 decimal
places, e.g. 52.75,.)
BROWNTREE CORPORATION
Statement of Income
Eamings per share
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Suppose a company has debt of $71 million and a debt to total assets ratio of 0.1. This means that the company's debt-equity ratio is _____
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Pribyl Corporation has provided the following financial data:
Total assets
Total stockholders' equity
Income Statement
For the Year Ended December 31, Year 2
$
Sales (all on account)
Cost of goods sold
Gross margin
Operating expenses
Net operating income
Interest expense
Net income before taxes
Income taxes (36%)
Net income
a. Net profit margin percentage
b. Gross margin percentage
c. Return on total assets
d. Return on equity
%
1,285,000
727,000
558,000
510,846
Required:
a. What is the company's net profit margin percentage for Year 2?
b. What is the company's gross margin percentage for Year 2?
c. What is the company's return on total assets for Year 2?
d. What is the company's return on equity for Year 2?
Note: Round your answers to 2 decimal places.
%
%
47,154
17,500
29,654
10.675
$ 18,979
$ 1.496.000
$ 1,033,000
$ 1,470,000
$ 1,020,000
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Refer to the following selected financial information from a company. Compute the company’s debt-to-equity ratio for Year 2.
Year 2
Year 1
Net sales
$ 484,500
$ 427,450
Cost of goods sold
277,500
251,320
Interest expense
10,900
11,900
Net income before tax
68,450
53,880
Net income after tax
47,250
41,100
Total assets
319,500
295,200
Total liabilities
175,400
168,500
Total equity
144,100
126,700
Answer:
A. 1.22.
B. 1.82.
C. 3.36.
D. 0.82.
E. 2.22.
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You find the following financial information about a company: net working capital
= $7, 809; total assets
$11,942; and long-term debt
Multiple Choice $9, 115 $4, 507 $10, 339 $6, 129 $4, 133
=
=
= $1, 287; fixed assets
$4,589. What is the company's total equity?
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Benson Company’s net income was $225,000 for Year 1, $243,750 for Year 2, and $293,160 for Year 3. Assume trend percentages for net income over the three-year period are computed, with Year 1 serving as the base year.The trend percentage for Year 3’s net income is:
Select one:
A. 117.30%
B. 86.36%
C. 120.92%
D. 130.29%
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Selected current year-end financial statements of GENESIS Corporation follow. All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748.
Compute the following: debt-to-equity ratio, times interest earned, profit margin ratio
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The comparative accounts payable and long-term debt balances for a company follow. Line Item Description Current Year Previous Year Accounts payable $116,280 $102,000 Long-term debt 129,600 120,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Enter all answers as positive numbers.
arrow_forward
You find the following financial information about a company: net working capital = $1,071; fixed assets $7,297; total
assets = $11,686; and long-term debt = $4,381. What is the company's total equity?
Multiple Choice
$3,987
$8,539
$4,389
$6,457
$9,387
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In its Year 6 annual report, Sally Inc. reported net earnings of $4,242 million and dividends paid of $1,638 million. Your forecast of net income for Sally Inc. for Year 7 is $4,403 million. What are projected dividends for the company for Year 7?
Select one:
a. $1,578 million
b. $1,700 million
c. None of these are correct
d. $1,638 million
e. $1,324 million
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Here is the income statement for Windsor, Inc.
WINDSOR, INC.Income StatementFor the Year Ended December 31, 2020
Sales revenue
$420,100
Cost of goods sold
235,100
Gross profit
185,000
Expenses (including $16,100 interest and $21,900 income taxes)
72,500
Net income
$ 112,500
Additional information:
1.
Common stock outstanding January 1, 2020, was 22,400 shares, and 36,600 shares were outstanding at December 31, 2020.
2.
The market price of Windsor stock was $12 in 2020.
3.
Cash dividends of $22,600 were paid, $4,600 of which were to preferred stockholders.
Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)
(a)
Earnings per share
$enter a dollar amount
(b)
Price-earnings ratio
enter Price-earnings ratio in times
times
(c)
Payout ratio
enter percentages
%
(d)
Times interest earned
enter Times interest earned
times
arrow_forward
The comparative accounts payable and long-term debt balances for a company follow.
Current Year Previous YearAccounts payable $114,240 $102,000Long-term debt 127,200 120,000
Based on this information, what is the amount and percentage of increase or decrease that wouldbe shown on a balance sheet with horizontal analysis?
arrow_forward
the income statement for Stretch-Tape Corporation reports net sales of $439,900 and net income of $54,780. Average total assets for the year are $830,000. Stockholders’ equity at the beginning of the year was $530,000, and $23,000 was paid to stockholders as dividends during the year. There were no other stockholders’ equity transactions that occurred during the year.Required:Calculate the return on assets, profit margin, asset turnover, and return on equity ratios. (Round your answers to 1 decimal place.)
Profitability Ratios
Return on assets
6.6
%
Profit margin
12.5
%
Asset turnover
times
Return on equity
%
arrow_forward
Following are financial statement numbers and ratios for Your Health Corporation for the year ended December 31, Year 6.
Total revenue (in millions)
Net operating profit margin (NOPM)
Net operating asset turnover (NOAT)
Year 6
$159,773
Select one:
O
O
O
O
O
3.6%
If we anticipate a 5% sales growth in Year 7, what is the company's projected net operating profit after tax (NOPAT) for Year 7?
a. None of these are correct
b. $57,518 million
c. $17,575 million
d. $5,752 million
e. $6,039 million
2.91
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Deacon Corporation has provided the following financial data from its balance sheet and income statement:
Total assets
Total liabilities
Total stockholders' equity
Net operating income (income before interest and taxes)
Interest expense
The company's debt-to-equity ratio at the end of Year 2 is closest to:
Multiple Choice
O
C
0.61
0.42
073
Year 2
$ 1,265,000
$ 532,000
$ 733,000
$ 68,739
$ 25,000
Year 1
$ 1,232,900
$ 460,900
$ 772,000
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The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?
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Wichita, Incorporated reported the following amounts on its financial statements prepared as of the end of the current
accounting period:
Revenues
Expenses
Net Income
Current Assets
Long-term Assets.
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Common Stock
Retained Earnings.
Total Equity
Total Liabilities and Equity
What is the company's debt-to-assets ratio?
$230,000
219,600
$ 65,000
195,000
$ 50,000
95,000
$ 55,000
60,000
$ 10,400
$260,000
145,000
115,000
$260,000
4
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Financial Ratios for Assessing Profitability and Managing Debt
Selected financial data from the June 30 year-end statements of Safford Company are given below:
Total assets at the beginning of the year were $3,000,000; total stockholders’ equity was $2,200,000. The company’s tax rate is 30%.
Required:
1. Compute the return on total assets.
2. Compute the return on equity.
3. Is financial leverage positive or negative? Explain.
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The lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a current ratio of 1.5. current liabilities are 900, sales are 6230 , profit margin is 8.1 percent what is the amount of the firms net fixt assets ?
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A company's balance sheet showed the following amounts for liabilities and stockholders' equity accounts: Current Liabilities, $50,000; Bonds Payable, $600,000; Long-Term Lease Obligations, $120,000; and Deferred Income Tax Liability, $20,000. Total stockholders' equity was $520,000. What is the debt to equity ratio?
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Suppose that for 2010 Aquarius company's current assets totaled $60,000; total assets totaled 470,000; current liabilities totaled 72,000; and total liabilities totaled $430,000. Calculate the debt-to-equity ratio for Aquarius for 2010.
Calculate the debt-to-equity ratio for Aquarius for 2010.
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Refer to the following selected financial information from Hansen's, LLC. Comput
the company's debt-to-equity ratio for Year 2.
Net sales
Year 2
$478,500
Year 1
$426,250
Cost of goods sold
276,300
250.120
Interest expense
9,700
10,700
Net income before tax
67.250
52,680
Net income after tax
46,050
39,900
Total assets
317,100
288,000
Total liabilities
181,400
167,300
Total equity
135,700
120,700
О
1) 1.75.
2) 2.34.
3) 0.75.
4) 1.34.
5) 2.63.
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Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of
$8,125,000, and total assets of $40,625,000.
Required:
Round the debt ratio to the nearest percent.
1. Calculate the debt ratio.
%
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Here is the income statement for Tamarisk, Inc.
TAMARISK, INC.
Income Statement
For the Year Ended December 31, 2020
Sales revenue
$419,200
251,500
Cost of goods sold
Gross profit
167,700
Expenses (including $14,200 interest and $28,000 income taxes)
73,500
$94,200
Net income
Additional information:
Common stock outstanding January 1, 2020, was 24,400 shares, and 39,100 shares were outstanding at December 31, 2020.
1.
The market price of Tamarisk stock was $12 in 2020.
2.
Cash dividends of $22,800 were paid, $5,300 of which were to preferred stockholders.
3.
Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.5 1%)
$
(a)
Earnings per share
(b)
Price-earnings ratio
times
(c)
Payout ratio
(d)
Times interest earned
times
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A company’s balance sheet reveals it has total assets of $8,081,700, total liabilities of $2,966,700, and total equity of $5,115,000. The current debt-to-equity ratio for this company is:
0.37.
0.58.
0.63.
1.72.
2.72.
arrow_forward
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Related Questions
- The following data were taken from the records of Browntree Corporation at the end of the fiscal year ending December 31, 2020: Sales revenue $97,700 Cost of goods sold Gross profit S36,160 Wages expense $11,600 Selling and administrative expenses Income before income tax $13,500 Income tax rate 30% Number of common shares outstanding 5,000 Prepare a multi-step statement of income for the company and calculate the earnings per share. (Hint: You will need to calculate the missing amounts to complete the statement of income.) (Round earnings per share to 2 decimal places, e.g. 52.75,.) BROWNTREE CORPORATION Statement of Income Eamings per sharearrow_forwardSuppose a company has debt of $71 million and a debt to total assets ratio of 0.1. This means that the company's debt-equity ratio is _____arrow_forwardPribyl Corporation has provided the following financial data: Total assets Total stockholders' equity Income Statement For the Year Ended December 31, Year 2 $ Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (36%) Net income a. Net profit margin percentage b. Gross margin percentage c. Return on total assets d. Return on equity % 1,285,000 727,000 558,000 510,846 Required: a. What is the company's net profit margin percentage for Year 2? b. What is the company's gross margin percentage for Year 2? c. What is the company's return on total assets for Year 2? d. What is the company's return on equity for Year 2? Note: Round your answers to 2 decimal places. % % 47,154 17,500 29,654 10.675 $ 18,979 $ 1.496.000 $ 1,033,000 $ 1,470,000 $ 1,020,000arrow_forward
- Refer to the following selected financial information from a company. Compute the company’s debt-to-equity ratio for Year 2. Year 2 Year 1 Net sales $ 484,500 $ 427,450 Cost of goods sold 277,500 251,320 Interest expense 10,900 11,900 Net income before tax 68,450 53,880 Net income after tax 47,250 41,100 Total assets 319,500 295,200 Total liabilities 175,400 168,500 Total equity 144,100 126,700 Answer: A. 1.22. B. 1.82. C. 3.36. D. 0.82. E. 2.22.arrow_forwardYou find the following financial information about a company: net working capital = $7, 809; total assets $11,942; and long-term debt Multiple Choice $9, 115 $4, 507 $10, 339 $6, 129 $4, 133 = = = $1, 287; fixed assets $4,589. What is the company's total equity?arrow_forwardBenson Company’s net income was $225,000 for Year 1, $243,750 for Year 2, and $293,160 for Year 3. Assume trend percentages for net income over the three-year period are computed, with Year 1 serving as the base year.The trend percentage for Year 3’s net income is: Select one: A. 117.30% B. 86.36% C. 120.92% D. 130.29%arrow_forward
- Selected current year-end financial statements of GENESIS Corporation follow. All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748. Compute the following: debt-to-equity ratio, times interest earned, profit margin ratioarrow_forwardThe comparative accounts payable and long-term debt balances for a company follow. Line Item Description Current Year Previous Year Accounts payable $116,280 $102,000 Long-term debt 129,600 120,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Enter all answers as positive numbers.arrow_forwardYou find the following financial information about a company: net working capital = $1,071; fixed assets $7,297; total assets = $11,686; and long-term debt = $4,381. What is the company's total equity? Multiple Choice $3,987 $8,539 $4,389 $6,457 $9,387arrow_forward
- In its Year 6 annual report, Sally Inc. reported net earnings of $4,242 million and dividends paid of $1,638 million. Your forecast of net income for Sally Inc. for Year 7 is $4,403 million. What are projected dividends for the company for Year 7? Select one: a. $1,578 million b. $1,700 million c. None of these are correct d. $1,638 million e. $1,324 millionarrow_forwardHere is the income statement for Windsor, Inc. WINDSOR, INC.Income StatementFor the Year Ended December 31, 2020 Sales revenue $420,100 Cost of goods sold 235,100 Gross profit 185,000 Expenses (including $16,100 interest and $21,900 income taxes) 72,500 Net income $ 112,500 Additional information: 1. Common stock outstanding January 1, 2020, was 22,400 shares, and 36,600 shares were outstanding at December 31, 2020. 2. The market price of Windsor stock was $12 in 2020. 3. Cash dividends of $22,600 were paid, $4,600 of which were to preferred stockholders. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a) Earnings per share $enter a dollar amount (b) Price-earnings ratio enter Price-earnings ratio in times times (c) Payout ratio enter percentages % (d) Times interest earned enter Times interest earned timesarrow_forwardThe comparative accounts payable and long-term debt balances for a company follow. Current Year Previous YearAccounts payable $114,240 $102,000Long-term debt 127,200 120,000 Based on this information, what is the amount and percentage of increase or decrease that wouldbe shown on a balance sheet with horizontal analysis?arrow_forward
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ISBN:9781337115773
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