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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 margin 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) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst Year 2 Year 1 $336,240* $285,000 241,000 285,560 50, 680 44,000 30, 200 33,460 17,220 5,510 $ 11,710 13,800 4,200 $ 9,600 $ 4,380 $ 8,800 18, 280 22,000 52,460 34,270 $109,390 $ 12,550 39,830 30,000 27,010 $109, 390 46,000 29,000 $105,800 $ 15,200 38,800 30,000 21,800 $105,800 *One-third was credit sales. +During Year 2 cash dividends amounting to $6.500 were declared and paid

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 margin 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) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst Year 2 Year 1 $336,240* $285,000 241,000 285,560 50, 680 44,000 30, 200 33,460 17,220 5,510 $ 11,710 13,800 4,200 $ 9,600 $ 4,380 $ 8,800 18, 280 22,000 52,460 34,270 $109,390 $ 12,550 39,830 30,000 27,010 $109, 390 46,000 29,000 $105,800 $ 15,200 38,800 30,000 21,800 $105,800 *One-third was credit sales. +During Year 2 cash dividends amounting to $6.500 were declared and paid

Managerial Accounting
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 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...
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2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.)

2-c. What was the amount of cash collections from customers in year 2?

2-d. What was the percentage change for the markup realized on sales? (Round intermediate calculations and final answer to 1 decimal place.)

 

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 margin 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) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst Year 2 $336,240* 285,560 50, 680 33,460 17, 220 5,510 $ 11,710 4,380 18, 280 52,460 34,270 $109,390 $ 12,550 39,830 30,000 27,010 $109,390 Year 1 $285,000 241,000 44,000 30, 200 13,800 4,200 $ 9,600 $ 8,800 22,000 46,000 29,000 $105,800 $ 15,200 38,800 30,000 21,800 $105,800 *One-third was credit sales. +During Year 2, cash dividends amounting to $6,500 were declared and paid.
Transcribed Image Text: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 margin 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) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst Year 2 $336,240* 285,560 50, 680 33,460 17, 220 5,510 $ 11,710 4,380 18, 280 52,460 34,270 $109,390 $ 12,550 39,830 30,000 27,010 $109,390 Year 1 $285,000 241,000 44,000 30, 200 13,800 4,200 $ 9,600 $ 8,800 22,000 46,000 29,000 $105,800 $ 15,200 38,800 30,000 21,800 $105,800 *One-third was credit sales. +During Year 2, cash dividends amounting to $6,500 were declared and paid.
Required: 1. Complete the following columns for each item in the preceding comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).): Statement of earnings: Sales revenue Cost of sales Gross margin 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 Long-term debt Common shares Retained earnings $ $ $ $ Increase (Decrease) Year 2 over Year 1 Amount 51,240 44,560 6,680 3,260 3,420 1,310 2,110 (4,420) (3,720) 6,460 5,270 3,590 (2,650) 1,030 0 5,210 3,590 Percentage 17.98 18.49 15.18 10.79 24.78 31.19 21.98 (50.23) (16.91) 14.04 18.17 3.39 (17.43) 2.65 0.00 23.90 3.39
Transcribed Image Text:Required: 1. Complete the following columns for each item in the preceding comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).): Statement of earnings: Sales revenue Cost of sales Gross margin 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 Long-term debt Common shares Retained earnings $ $ $ $ Increase (Decrease) Year 2 over Year 1 Amount 51,240 44,560 6,680 3,260 3,420 1,310 2,110 (4,420) (3,720) 6,460 5,270 3,590 (2,650) 1,030 0 5,210 3,590 Percentage 17.98 18.49 15.18 10.79 24.78 31.19 21.98 (50.23) (16.91) 14.04 18.17 3.39 (17.43) 2.65 0.00 23.90 3.39
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