19991998Net Sales3,375,0002,700,000COGS2,092,5001,755,000Selling Expenses540,000324,000Administrative Expenses270,000243,000Interest Expense148,500108,000Net Income324,000270,000Make the vertical analysis for 1999 and 1998.show your solution as a guide.

Income statement represents the net income or net loss that includes the revenues and expenses.

Answered: 1999 1998 Net Sales 3,375,000 2,700,000…

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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A4
Solaris Corporation prepared the following estimates for the four quarters of the current year. First Quarter Second Quarter Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts $ 1,525,000 $ 1,830,000 Third Quarter $ 2,135,000 604,000 235,000 Fourth Quarter $ 2,440,000 654,000 454,000 534,000 400,000 230,000 245,000 Ө 160,000 B в В B B 64,000 8 B B 82,000 Annual maintenance costs. 90,000 e B в Additional Information • First-quarter administrative costs include the $140,000 annual Insurance premium. • Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year. ■ No special Items affect Income during the year. . The company estimates an effective income tax rate for the year of 25 percent. a. Assuming that actual results do not vary from the estimates provided, determine the amount of net Income to be reported each quarter of the current year. b. Assume that…
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3
Return Ratios and Leverage The following selected data are taken from the financial statements of Redwood Enterprises: Sales revenue $641,000 Cost of goods sold 356,000 Gross profit $285,000 Selling and administrative expense 100,000 Operating income $185,000 Interest expense 50,000 Income before tax $135,000 Income tax expense (40%) 54,000 Net income $81,000 Accounts payable $45,000 Accrued liabilities 70,000 Income taxes payable 10,000 Interest payable 25,000 Short-term loans payable 150,000 Total current liabilities $300,000 Long-term bonds payable $500,000 Preferred stock, 10%, $100 par $250,000 Common stock, no par 600,000 Retained earnings 350,000 Total stockholders' equity $1,200,000 Total liabilities and stockholders' equity $2,000,000 Required: 1. Compute the following ratios for Redwood Enterprises: Return on sales Asset turnover (Assume that total assets at the beginning of the year…
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M6
2013 2014 Sales$4,500 $4,775 Depreciation7501050COGS24222430Interest180215Cash200400Accts Receivables200300Notes Payable100150Long-term debt29561850Net fixed assets80009200Accounts Payable50100Inventory18001600Dividends225275Tax rate35%35% 1. What is the cash flow from operating activities? 2. What is the cash flow from financing activities? What is the days sales in accounts receivable or the AR period?

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1999 1998 Net Sales 3,375,000 2,700,000 COGS 2,092,500 1,755,000 Selling Expenses 540,000 324,000 Administrative Expenses 270,000 243,000 Interest Expense 148,500 108,000 Net Income 324,000 270,000