Selected information is taken from the financial statements of Little Company for two successive years follows. Compute the percentage change from 2020 to 2019 whenever possible. 2020 2019 Accounts receivable............................... P126, 00 P150,000 Marketable securities............................. -0- 250,000 Retained earnings................................... 80,000 (80,000) Notes receivable..................................... 120,000 -0- Notes payables........................................ 860,000 800,000 Cash......................................................... 82,400 80,000 Sales.................................................. 990,000 900,000

Selected information is taken from the financial statements of Little Company for two successive years follows. Compute the percentage change from 2020 to 2019 whenever possible. 2020 2019 Accounts receivable............................... P126, 00 P150,000 Marketable securities............................. -0- 250,000 Retained earnings................................... 80,000 (80,000) Notes receivable..................................... 120,000 -0- Notes payables........................................ 860,000 800,000 Cash......................................................... 82,400 80,000 Sales.................................................. 990,000 900,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 56CE

See similar textbooks

Similar questions

The following information for Ford Company for the year 2019 has been assembled: Market value at December 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Debt ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40% Return on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% Asset turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 You are required to compute the following information: Total assets Sales Net income Price-earnings ratio
The following information for Ford Company for the year 2019 has been assembled:Market value at December 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Debt ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40% Return on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% Asset turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0You are required to compute the following information: a. Total assets b. Sales c. Net income d. Price-earnings ratio
You are requested to reconstruct accounts of Angel Trading for analysis. The following data were available to you: Gross margin for 2019 amounts.……………. P800,000 Beginning balance of Merchandise Inventory.. 280,000 Long-term liabilities consisted of bonds Payable with interest rate of………. 15% Total Stockholders’ Equity , Dec 31, 2019 P 625,000 Gross margin ratio ...........................………… 40% Debt to equity ratio ........................…………. 0.6 : 1 Times interest is earned …………… ………. 8 Quick ratio ....................................…………… 1.5 :1 Ratio of operating expense to sales...………. 25% Inventory Turnover ………………………… 5 Total current assets would amount to a. P187,500 b. P387,500 c. P467,500 d. P427,500
Problem 17-2A (Algo) Ratios, common-size statements, and trend percer [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 2021 $546,242 328,838 217,404 77,566 49,162 126,728 90,676 16,866 $ 73,810 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets December 31 2020 $ 418,466 263,634 2021 % 154,832 57,748 36,825 94,573 60, 259 12,353 $ 47,906 % $61,141 0 113,547…
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 Sales $ 562,795 2019 $ 299,200 338,803 Cost of goods sold Gross profit 191,488 223,992 107,712 Selling expenses 79,917 39,494 Administrative expenses 50,652 24,834 Total expenses 130,569 64,328 Income before taxes 93,423 43,384 Income tax expense 17,377 8,807 Net income $ 76,046 $ 34,577 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 Assets Current assets $ 38,127 $ 56,965 0 Long-term investments 700 97,740 Plant assets, net Total assets 107,436 $164,401 $ 136,567 Liabilities and Equity Current liabilities $ 20,348 Common stock 68,000 $ 24,003 68,000 8,500 63,898 Other paid-in capital 8,500 Retained earnings 39,719 Total liabilities and equity $164,401 $ 136,567 2020 $431,147 273,778 157,369 59,498 37,941 97,439 59,930 12,286 $ 47,644 2019 $ 50,967 4,550 57,629 $ 113,146 $ 19,801 50,000 5,556 37,789 $113,146 4
(Computing and Interpreting Rates of Change) Selected information from the financial statements of Yellow Harvest includes the following: 2020 2019 Netsales…………………………………… P2,200,000 P2,000,000 Totalexpenses…………………………….. 1,998,000 1,800,000 Required: Compute the percentage change in 2020 for the amounts of (1) net sales and (2) total expenses Using the information developed in a part, express your opinion as to whether the company’s net income for2020: Increased at a greater or lower percentage rate than did net sales. Represented a larger or smaller percentage of net sales revenue than in For each answer, explain your reasoning without making any computations or references to peso amounts.
Using a BalanceSheetMOON CORPORATIONBALANCE SHEETJULY 31, 2011Assets Liabilities & Owners’ EquityCash . . . . . . . . . . . . . . . . $ 18,000 Liabilities:Accounts Receivable . . . 26,000 Notes PayableLand . . . . . . . . . . . . . . . . 37,200 (due in 60 days) . . . . . . . . . . . . . $ 12,400Building. . . . . . . . . . . . . . 38,000 Accounts Payable . . . . . . . . . . . . . 9,600Office Equipment . . . . . . 1,200 Total liabilities . . . . . . . . . . . . . . $ 22,000Stockholders’ equity:Capital Stock . . . . . . . . . $60,000Retained Earnings. . . . . 38,400 98,400Total . . . . . . . . . . . . . . . . $120,400 Total . . . . . . . . . . . . . . . . . . . . . . . . . $120,400STAR CORPORATIONBALANCE SHEETJULY 31, 2011Assets Liabilities & Owners’ EquityCash . . . . . . . . . . . . . . . . $ 4,800 Liabilities:Accounts Receivable . . . 9,600 Notes PayableLand . . . . . . . . . . . . . . . . 96,000 (due in 60 days) . . . . . . . . . . . . . $ 22,400Building. . . . . . . . . . . .…
3. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Round your percentage answers to 2 decimal places.) KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2019, 2018 and 2017 2019 2018 2017 Assets Current assets % % 100.00 % Long-term investments 100.00 Plant assets, net 100.00 Total assets % % 100.00 % Liabilities and Equity Current liabilities % % 100.00 % Common stock 100.00 Other paid-in capital 100.00 Retained earnings 100.00 Total liabilities and equity % % 100.00 % see pictures
Express the Balance Sheets/Financial Position and Income Statement in common-size percents, using Year 2019 as base year. Round percents to one decimal. Do not put the percent when writing your answer. Refer to the format given Common-Size Comparative Financial Position In % At December 31 2021 2020 2019 Assets Cash
Show the balance sheet presentationof the investments at December 31,2019.At this date,Ramey Associates has common stock TK.15,00,000 and retained earnings TK.10,00,000.
Here is financial information for Glitter Inc. Current Assets Plant Assets Current Liabilities Long-Term Liabilities Common Stock $1 par Retained Earnings Assets Instructions Prepare a schedule showing horizonal analysis for 2022. Using 2021 as the base year. Your Answers: FYI: Format the % with one decimal place: ex 99.9% If your dollar or percent answer is a negative amount, indicate by parentheses as: ex (99.9%) I Current Assets Plant Assets (net) Total Assets Liabilities Current Liabilities Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock, $1 par Retained Earnings Total Stockholders' Equity December 31 2022 106,000 400,000 99,000 122,000 130,000 155,000 Total Liabilities and Stockholders' Equity 2022 2021 106,000 90,000 400,000 350,000 506,000 440,000 99,000 65,000 122,000 90,000 221,000 155,000 130,000 155,000 285,000 115,000 170,000 285,000 December 31 2021 90,000 350,000 65,000 90,000 115,000 170,000 506,000 440,000 Increase OR (Decrease) $ Amount…
Using comparative financial statements of Zayed Abu Dhabi Corporation above, prepare common size statements. Zayed Abu Dhabi Corporation Comparative Balance Sheets For the years ended December 31, 2020 and 2019 Comparative Balance Sheets For the years ended December 31, 2020 and 2019 2020 2019 Common Size 2020 Common Size 2019 Cash.................................................... 58 78 Accounts recble., net......................... 514 490 Merchandise inventory....................... 1332 1802 Plant assets, net................................. 2020 2014 Total assets........................................ 4442 4002