Cash $ 19,000 Accounts Receivable, Net 82,000 Merchandise Inventory 183,000 Total Assets 638,000 Accounts Payable 102,000 Accrued Liabilities 35,000 Short-term Notes Payable Long-term Liabilities 50,000 221,000 Net Income 69,000 Common Shares Outstanding 50,000 shares Current Ratio Debt Ratio Earnings per Share

Part A. The following information is available for Entity A: Sales revenue Sales returns and allowances Sales discounts Cost of goods sold Operating expenses Interest expense Gain on sale of land Interest revenue $840,300 10,000 7,800 475,000 187,200 11,000 129,300 3,500 Instructions 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2024. Please look at Illus. 5.12 in the text for an example. The income tax rate is 23%. Check figures: Income from operations is $160,300. Net income is $217,217. 2. Compute the profit margin and the gross profit rate. Show and label calculations. 3. Suggest at least three ways these measures might be materially improved and net income increased. Be sure to consider the relationship between net sales, cost-of- goods-sold and gross profit. 4. Last year, the profit margin was 15%. Is the increase in the profit margin this year sustainable, i.e. likely to continue? (Hint: consider what item was largely…

The 2021 income statement of Adrian Express reports sales of $19,310,000, cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Long-term assets $ 700,000 1,600,000 2,000,000 4,900,000 $9,200,000 $860,000 1,100,000 1,500,000 4,340,000 Total assets $7,800,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings $1,920,000 $1,760,000 2,500,000 1,900,000 1,640,000 $7,800,000 2,400,000 1,900,000 2,980,000 Total liabilities and stockholders' equity $9,200,000 Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin 45% 25% 15% 2.5times 35% Asset turnover Return on equity

Refer to the following selected financial information from Texas Electronics. Compute the company's accounts receivable turnover for Year 2. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Year 2 Year 1 $ 38,300 $ 33,050 98,000 64,000 89,500 83,500 125,000 129,000 12,900 10,500 392,000 342,000 109,400 111,800 715,000 680,000 394,000 379,000

The following items are reported on a company's balance sheet: Cash $283,200 Marketable securities 83,400 Accounts receivable 251,600 Inventory 185,700 Accounts payable 315,200 Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place. a. Current ratio b. Quick ratio

Winterwear Clothiers reported the following selected items at April 30, 2025 (last year's-2024-amounts also given as needed): View the financial data. Compute Winterwear Clothiers' (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending April 30, 2025. Evaluate each ratio value as strong or weak. Winterwear Clothiers sells on terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Winterwear Clothiers' acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. = Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.) + + + + Financial Data = Acid-test ratio = Accounts Payable 320,000 Accounts Receivable, net: Cash 260,000 April 30, 2025 $ 270,000 Merchandise Inventory: April 30, 2024 170,000 April 30, 2025 290,000 Cost of Goods Sold 1,150,000 April 30, 2024 200,000…

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $39,569 Accounts receivable (net) 29,417 Merchandise inventory 30,907 Property, plant, and equipment 219,211 Total assets $319,104     Liabilities and Stockholders' Equity   Current liabilities $66,051   Long-term liabilities 93,607   Stockholders' equity—common 159,446   Total liabilities and stockholders' equity $319,104   Income Statement   Sales $93,952    Cost of merchandise sold (37,581)   Gross profit $56,371    Operating expenses (26,268)   Interest expense  (4,698)   Net income $25,405      Number of shares of common stock outstanding 6,014   Market price per share of common stock $31   Total dividends paid $8,800   Net cash flows from operating activities…

5. Know the calculations for all of the following ratios (see ratio sheet that can be used on the exam) and know the category (listed in Question 4) they fall in: Formula Category/Use Ratio Working Capital Current Assets - Current Liabilities Net credit sales/Average Accounts Receivable Turnover accounts receivable Asset Turnover Net sales/Average total assets Net income/Average total stockholders' equity Total liabilities/Total stockholders equity Net income/Net sales Return on Equity (ROE) Debt to equity Return on Sales (ROS) (also known as Net Margin Current Assets/Current Liabilities Cost of goods sold/Average inventory Quick assets/Current Current Ratio Inventory Turnover Quick Ratio liabilities Dividend Yield Dividends per share/Market price per share Net earnings available for common stock/Number of outstanding common shares Net income/Average total Earnings per Share (EPS) Return on Investment (ROI) assets Price Earnings Ratio (P/E) Market price per share/Earnings per share…

Evaluating Financials and Ratios From Chapter 17 1. From the data given in the following table, please construct as many of the financial ratios discussed in this chapter as you can and then indicate what dimension of a business firm's performance each ratio represents. Cash account Accounts receivable Inventories Fixed assets Miscellaneous assets Cost of goods sold Wages and salaries Interest expense Overhead expenses Depreciation expenses Selling, administrative, and other expenses 108 Before-tax net income 117* Taxes owed 325* After-tax net income 15 160 725 *Annual principal payments on bonds and notes payable total $55. The firm's marginal tax rate is 35 percent. Short-term debt: Accounts payable Notes payable Long-term debt (bonds) Equity capital A. Business Assets B. C. D. The financial ratios that could be computed given the data in this problem fall under the following categories: E. F. Liabilities and Equity G. Annual Revenue and Expense Items $60 Net sales 155 128 286 96 725…

Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%. Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other expense (interest) Income before income tax expense Income tax expense Net income Comparative Income Statement For the Years Ended December 31, 20Y6 and 20Y5 $ 20Y6 8,250,000 X (1,242,000) 20Y5 $7,287,000 (3,444,000) $3,843,000 $(1,457,600) (1,106,000) $(2,563,600) $1,279,400 (120,600) $1,158,800 (181,980) $976,820 $ $ $ Increase/(Decrease) Amount 823,000 X…