Calculate the following profitability ratios for 2018 and 2019. a. Gross profit ratio b. Return on assets c. Profit margin d. assets turnover Net salesCost of goods soldGross profitExpenses:VIRTUAL GAMING SYSTEMSIncome StatementsFor the years ended December 312019Operating expensesDepreciation expenseLoss on sale of landInterest expenseIncome tax expenseTotal expensesNet income$3.560.0002.490.0001.070,000965.00040,000023.0009,0001,037,000$ 33,0002018$3,086,0001,960,0001,126,000868,00032,0009,00020,00058,000987.000139.000 WAssetsCurrent assets:CashAccounts receivableInventoryPrepaid rentLong-term assets:VIRTUAL GAMING SYSTEMSInvestment in bondsLandEquipmentLess: AccumulateddepreciationTotal assetsLiabilities andStockholders EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payableStockholders equityCommon stockRetained earningsTotal liabilities andstockholders equityBalance SheetsDecember 312019$216,000 $196,00090,00091.000140.000115.00015.00013.000115,000310.000310,000(124.000)$1,072,000$ 161.00012.00013.000450.000310.0002018126.000$1,072,000115.000220,000280.000(84,000)$946 000$ 76,0008.00020.000295.000310.000237.0002017$154,00070.000145.0007.2000250.000220,000(52,000)$794 200$137 2004.00015.000235.000310.00093.000$946.000 $7.94 200

The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Answered: Calculate the following profitability…

Calculate the following profitability ratios for 2018 and 2019. a. Gross profit ratio b. Return on assets c. Profit margin d. assets turnover

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 13MCQ

See similar textbooks

Related questions

Q: What is the inventory turnover for Enoteca Fine Wines?

A: The inventory turnover ratio is an important ratio for analysis of financial statement and this…

Q: Use the information provided to calculate standard costs: To make one switch it takes 17 feet of…

A: Solution... Direct cost of direct material = standard cost of plastic-coated copper wire +…

Q: Journal entry worksheet 1 of 1 www Bow Next >

A: The easiest solution to maintain track of a business transaction is through journal entries. .…

Q: Office Specialists sells and services copiers and fax machines. The trial balance as of December 31,…

A: Accounting worksheet: It is a table that records the effect of all adjusting entries on accounts.…

Q: 17. Horatio and Magdalena are married, file a joint return, and have two children, ages 3 and 6.…

A: for tax year 2022, U.S households must have a combined income of less than $15,000 to get maximum…

Q: Use the information provided to calculate standard costs: To make one switch it takes 17 feet of…

A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…

Q: The draft accounts of Kale & Co. for the year ended 31st Mar 2022 include the following: Revenue…

A: Gross profit percentage margin is the percentage gross profit which is earned on the revenue by the…

Q: Current Attempt in Progress Blossom Company budgeted selling expenses of $30,300 in January, $34,500…

A: Selling and adminstrative budget :— This budget is prepared to estimate the selling and…

Q: Prepare a vertical analysis of the 2022 income statement data for Duke Company and Lord Company.…

A: VERTICAL ANALYSIS OF FINANCIAL STATEMENT Vertical analysis is a method of analyzing the…

Q: Assume that a company expects to produce 10,600, 11,600, and 13,600 units of finished goods in…

A: Direct Material Purchase Budget :— This budget is prepared to estimate the direct material to be…

Q: 1. Berwick plc Berwick plc has produced the following trial balance as at 31 January 2020. Profit…

A: The statement of income: The retained earnings

Q: Stockholders' equity of Ernst Company consists of 80,000 shares of $5 pa 280,000 shares of $1 par…

A: Solution.. As the Preferred stocks are Cumulative therefore, Arrear of preferred dividend will…

Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…

A: NPV (Net Present Value) is the method of determining the present value of future estimated cash…

Q: You bought $5,000 worth of mutual funds with a redemption fee of 5 percent. If you sell within the…

A: Introduction: Mutual Fund Redemption fees are the fee charged by the mutual fund company from the…

Q: aver Company currently pays an outside supplier $15 per unit for a part for one of its products.…

A: ANSWER Cost per unit to make the part = Direct material cost + direct labor cost + Incremental…

Q: Income Statement October November December…

A: Lets understand the basics. Management prepares various type of budgets based on the activity…

Q: Compute the net present value (NPV) of this investment.

A: Meaning of Net present value It is the difference between present value of cash inflows and present…

Q: Mint Company is preparing a flexible budget for next year and requires a breakdown of the factory…

A: Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per cost…

Q: [The following information applies to the questions displayed below.] Simon Company's year-end…

A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…

Q: Question 5 On January 1, 2020, Ruben Ho and Clay Rang formed the Rabes and Clay Parenip by investing…

A: Partnership: It a type of business firm where two or individuals or companies start a business…

Q: Prepare an income statement for the year.

A: Income statement is a financial statement that shows total revenue and expenses for a business. It…

Q: Cooperton Mining just announced it will cut its dividend from $4.21 to $2.42 per share and use the…

A: (a) Formula for required return (Ke): Ke = [D1 / P0 ] + g where:- Ke =Required return D1 =…

Q: for Model X is 4,000 per month and demand for Model Y is 5,500 per month. The available machine…

A: When there is a constraining resource then the contribution margin per the constraining resource is…

Q: Chapter 16-TAC Industries Inc. sells heavy equipment to large corporations and federal, state, and…

A: Job costing is a method of product costing which identifies the job as its primary objective. In the…

Q: 9. AMANI WEAVER HAS AN ADJUSTED GROSS INCOME OF $164,376. SHE HAS DEDUCTI INCOME TAX, $875 IN CITY…

A: Taxable income refers to the amount earned by an individual or corporation after subtracting all the…

Q: On the bank reconciliation, deposits in transit are: O a. an addition to the balance per bank…

A: In this question, we need to identify the treatment of the deposits in transit in the bank…

Q: Problem 6: The capital accounts of Sangonomiya Kokomi Company on December 31, 2020 were follows:…

A: The shareholder's equity comprises of paid in capital and retained earnings of the business. The…

Q: equirement 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer…

A: Income statement has been prepared in the current case, where concept of variable costing has been…

Q: A Corporation reports operating expenses in two categories: (1) Cost of goods sold, (2) selling and…

A: Cost of goods available for sale means the cost of opening inventory and cost of goods purchased…

Q: Planet Corporation has 5,800 shares of n 2,900 shares of common stock with a $0.0 Planet declared…

A: Answer : 1) Annual preferred stock dividend = 5800 * $2 * 12% Annual preferred stock dividend =…

Q: Use the following information for the Quick Studies below. (Algo) ($ thousands) Net sales Current…

A: Given, Current year net sales = $802,213 Prior year net sales = $453.350

Q: An online gambling site offers a first prize of $50,000 and second prizes of $15,000 each for…

A: The expected value under the random selection process is calculated by taking the sum of a weighted…

Q: Problem 6: Swan Corporation acquired 10,000 Maid Company shares on February 5, 2021 at P50 which…

A: 6.1 INTITIAL CARRYING VALUE 10,000 sharesX P50 = P5,00,000 The recording amount of shares will…

Q: A hospital reported the following uncollectible amounts: $15,000 for services rendered to homeless…

A: ANAWER No entry required in case of service rendered with no intention of collection. Here in this…

Q: Purchased a machine with $100.000. Decided to take 50% Bonus in the first year, and put in 3-year…

A: Depreciation is decrease in value of assets due to the use of equipment and wear and tear of the…

Q: Choose the amount of loss and the type of loss that shall be recognized on the above transaction. P…

A: An impairment loss is the recognition of the reduction in the value of the asset due to changes in…

Q: vities: flows P1. Cash Flows from Operating Activities: Direct Method Tanucci Clothing Store's…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Assume that a company is considering purchasing a machine for $100,000 that will have a seven-year…

A: NET PRESENT VALUE Net present value is the difference between the present value of cash inflows…

Q: Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its…

A: The manufacturing overhead costs include the indirect costs incurred during the period. The…

Q: On June 1, 20x4, a tract of land that originally cost P 800,000 was sold to SHE Company. The company…

A: Introduction The compensation received by an entity for borrowing its cash or permitting another…

Q: Sales Cost of goods sold Accounts receivable 2021 $ 611,353 302,063 29,467 2020 $ 399,577 197,543…

A: Introduction: Trend analysis is a tool used by the management to evaluate performance of the company…

Q: KYLER Company provided the following data for the purpose of reconciling the cash balance per book

A: Balance per book. 220000 December NSF checks (of which P10,000 had been…

Q: 1/1/2017 12/31/2017 12/31/2018 Ending Difference Balance Fair Value (FV-BV) 100,000 95,000 96,000…

A: A fair value refers to the price that is likely to be received from the disposal of an asset or paid…

Q: Sheffield Company reported net income of $73000 for the year. During the year, accounts receivable…

A: the company from prepare the cash flow statement in order to know the cash flow position and also…

Q: nventory of merchandise, June 30 urchases during July Goods available for sale during July Net sales…

A: The cost ratio is calculated as ratio of cost and retail prices of goods available for sale. The…

Q: QUESTION 1 The objectives of internal control are to O a. provide control over "internal-use only"…

A: The internal control are post by the company in order to monitor the working of the organisation in…

Q: Murray Company reports net income of $769,500 for the year. It has no preferred stock, and its…

A: BASIC EARNINGS PER SHARE : = (NET INCOME - PREFERRED DIVIDEND) / WEIGHTED AVERAGE COMMON SHARES…

Q: Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact…

A: Journal entry is the entry which is recorded in order to record the financial transactions in the…

Q: Not everyone pays the same price for the same model of a car. The figure illustrates a normal…

A: The price of Cars are different for customers and some customer are given less price and some are…

Q: Prepare the statement of financial position as at 31 January 2020

A: Statement of financial position of Berwick Plc as at 31/01/2020 Â Liability Amt (Pound)…

Question

100%

Calculate the following profitability ratios for 2018 and 2019.

a. Gross profit ratio

b. Return on assets

c. Profit margin

d. assets turnover

Net sales
Cost of goods sold
Gross profit
Expenses:
VIRTUAL GAMING SYSTEMS
Income Statements
For the years ended December 31
2019
Operating expenses
Depreciation expense
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income
$3.560.000
2.490.000
1.070,000
965.000
40,000
0
23.000
9,000
1,037,000
$ 33,000
2018
$3,086,000
1,960,000
1,126,000
868,000
32,000
9,000
20,000
58,000
987.000
139.000

W
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid rent
Long-term assets:
VIRTUAL GAMING SYSTEMS
Investment in bonds
Land
Equipment
Less: Accumulated
depreciation
Total assets
Liabilities and
Stockholders Equity
Current liabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders equity
Common stock
Retained earnings
Total liabilities and
stockholders equity
Balance Sheets
December 31
2019
$216,000 $196,000
90,000
91.000
140.000
115.000
15.000
13.000
115,000
310.000
310,000
(124.000)
$1,072,000
$ 161.000
12.000
13.000
450.000
310.000
2018
126.000
$1,072,000
115.000
220,000
280.000
(84,000)
$946 000
$ 76,000
8.000
20.000
295.000
310.000
237.000
2017
$154,000
70.000
145.000
7.200
0
250.000
220,000
(52,000)
$794 200
$137 200
4.000
15.000
235.000
310.000
93.000
$946.000 $7.94 200

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

14, please answer last part. thanks please pick from the follow accounts: Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI
Please help with current cash debt coverage ratio and cash debt ratio
compare financial assets and marketable investments
Available Options Are: Accounts Payable - Frist Accounts Payable - Lyon Accounts Receivable - Frist Accounts Receivable - Lyon Accumulated Depreciation Additional Paid-In Capital Bond Premium Bonds Payable Building Cash Common Stock Cost of Goods Sold Depreciation Expense Discount on bonds payable Dividends Declared Finance Costs Goodwill Intrerest Expense Interest Income Intrerest Payable Interest Receivable Land Merchandise Inventory Micellaneous Expense Other Expenses Sales
Which of the following constitutes an internal source of funds Oa. Corporate bonds b. Common stock Oc Commercial paper O d. Retained earnings and amortization cash flow
Dec. 31, 2020 Dec. 31, 2019 Assets Current assets: Cash and cash equivalents $248,005 $419,465 Accounts receivable 38,283 34,839 Inventory 15.043 15,332 Prepaid expenses and other current assets 39,965 34,795 Income tax receivable 58,152 16,488 Investments 415,199 338,592 Total current assets 814.647 859,511 Property, plant, & equipment, net 1,217.220 1,106,984 Long-term investments 622,939 496.106 Other assets 70,260 64,716 Total assets $2,725,066 $2,527,317 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $85,709 $69,613 Accrued payroll and benefits 64,958 73,894 Accrued liabilities 129,275 102,203 Total current liabilities 279,942 245,710 Deferred liabilities 284.267 240,975 Other liabilities 32.883 28,263 Total liabilities 597,092 514,948 Shareholders' equity: Common stock 358 354 Additional paid-in capital 954,988 861.843 Retained earnings 1,172.628 1,150,172 Total shareholders' equity 2,127,974 2,012.369 Total liabilities and shareholders' equity…
Paying off bonds payable is reported on the statement of cash flows undera. noncash investing and financing activities.b. financing activities.c. operating activities.d. investing activities.
A debt – to income ratio can easily be calculated be from a what kind of statement? Investment Budget Bank Tax Net worth
Under IFRS regarding Financial Assets, which of the following is true? O If you hold debt until it matures and only to get cash flows from it, unrealized gains or losses are categorized as FVPL. You can decide if you want equity to be recorded as FVOCI or FVPL O You appy the business and cash flow tests for equity investments O Debt can be placed into an available for sale category
The realizable amount of notes receivable is considered. a. Income b. all of the above c. Noncurrent asset d. Current asset
Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob. Current ratioc. Liability ratiod. Asset ratio
Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expenses