come statement data for Whirlpool Industries follow. just the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant 1.547% of net sales for each yea $ millions 2016 2015 et sales arranty expense 2014 $26,566 $26,296 $25,524 414 361 438 termine the adjusted warranty expense for each year. und answers to one decimal. $ millions 2016 2015 2014 djusted warranty expense $ 410.97 $ 406.79 $ 394.85
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- Adjusting Income Statements For Warranty Expense Income statement data for Whirlpool Industries follow. Adjust the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant 1.547% of net sales for each year. The company's tax rate is 30%. $ millions Net sales Warranty expense 2016 2015 2014 414 $26,566 $26,296 $25,524 438 361 Determine the adjusted warranty expense for each year. Round answers to one decimal. $ millions 2016 2015 2014 Adjusted warranty expense $ $ $ Determine the income statement adjustments for each year. • Round answers to one decimal. • Use a negative sign to indicate if the adjustment decreases an account balance. Income Statement Adjustments, $ mil. 2016 2015 Warranty expense Income tax expense Net Income 2014Reformulating Financial Statements For Warranty Expense Income statement data for Whirlpool Industries from the company's 2016 financial statements follow. Use these data to reformulate the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant percentage of revenue across all three years. Specifically, compute the adjustments to: warranty expense, income tax expense, and net income. The company's tax rate is 30%. 12 Months Ended ($ millions) Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014 Net sales $26,396 $26,569 $25,550 Warranty expense 571 815 577 Compute the average warranty expense to net sales rate over the past three years. Round answer to two decimal places (ex: 0.02345 = 2.35%) 2.5 % Using your rounded answer, compute the adjusted warranty expense for each year. • Round answers to one decimal place. • Use a negative sign to indicate if the adjustment decreases an account balance. Income Statements Adjustments Adjusted warranty expense…Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018(in thousands) 2017 Gross sales $2,004,719 $1,937,021 $1,835,987 Less: Sales discounts (4,811) (4,649) (4,406) Less: Sales returns and allowances (2,406) (2,324) (2,203) Net sales 1,997,502 1,930,048 1,829,378 Cost of goods sold 621,463 619,847 660,955 Gross profit 1,376,039 1,310,201 1,168,423 Operating expenses 577,369 595,226 583,555 Operating income 798,670 714,975 584,868 Other income (expenses) 15,973 (5,720) (8,773) Net income $814,643 $709,255 $576,095 At December 31 2019 2018(in thousands) 2017 Accounts receivable $201,290 $195,427 $182,642 Less: Allowance for doubtful accounts (2,516) (2,736) (2,192) Net accounts receivable $198,774 $192,691 $180,450 Required: 1. Calculate the following ratios for 2018 and 2019.…
- Sales Allowances Fitz-Chivalry Corporation reports the following information on its 2019 income statement. $ millions Gross sales 2017 2018 2019 $27,694 $30,738 $36,714 Allowance for sales returns Net sales 1,940 2,156 2,185 $25,754 $28,582 $34,529 Required Analysis of financial statements from prior years shows that the company consistently estimates the allowance for sales returns at about 7% of gross sales. What adjustment, if any, would we make to the 2019 income statement? Assume the company's combined federal and state tax rate is 24%. Hint: For adjustments to the income statement, we assume the normal 7% for the ratio of Allowance for sales returns to Gross sales for each year. Determine the 2019 adjusted allowance for sales return. (Round answer to nearest whole number.) $ millions Adjusted (total) allowance for sales returns $ 2019 0 Using the adjusted (total) allowance for sales returns computed above, determine the 2019 adjustments for the following income statement items.…Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018(in thousands) 2017 Gross sales $2,004,719 $1,937,021 $1,835,987 Less: Sales discounts 4,811 4,649 4,406 Less: Sales returns and allowances 2,406 2,324 2,203 Net sales $1,997,502 $1,930,048 $1,829,378 Cost of goods sold 621,463 619,847 660,955 Gross profit $1,376,039 $1,310,201 $1,168,423 Operating expenses 577,369 595,226 583,555 Operating income $798,670 $714,975 $584,868 Other income (expenses) 15,973 (6,140) (8,773) Net income $814,643 $708,835 $576,095 At December 31 2019 2018(in thousands) 2017 Accounts receivable $201,290 $195,427 $182,642 Less: Allowance for doubtful accounts 2,516 2,736 2,192 Net accounts receivable $198,774 $192,691 $180,450 Required: 1. Calculate the following ratios for 2018 and 2019. Round your answers…Venus corp has the following income statement for the year 2020 Gross sales Sales return Sales Discount Net sales COS Salaries Depreciations expense Utilities Commissions Insurance expense Rent expense Interest expense Net income before tax Tax 25% Net income after tax Required: Compute for the time interest earned 2020 $4,750,000.00 P16,000.00 P7,000.00 $4,727,000.00 #2,299,000.00 $400,000.00 P90,000.00 P45,000.00 P50,000.00 P15,000.00 P30,000.00 $25,000.00
- Obtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com a. What was Target's gross margin percentage for the fiscal year ended February 2, 2019 (2018) and 2017? Use "Sales" for these computations b. What was Target's Return on Sales percentage for 2018 and 2017? Use "Total Revenue" for these computations. c. Target's return on ales percentage for 2017 was higher than it was in 2018. Ignoring taxes, how much higher would Target's 2018 net income have been if it's return on sales percentage in 2018 had been the same as for 2017?The following data for Roco Corp. Are available for 2021: Installment accounts, receivable 12/31/21 100,000 Installment sales for 2021 350,000 Gross profit on installment sales 40% 1. Using the cost recovery method of reporting installment sales, the realized gross profit for 2021 is 2. Using the installment method of reporting installment sales, the realized gross profit for 2021 isOther accrued liabilities—warranties The balance of the Estimated Warranty Liability account was $25,000 on January 1, 2016, and $34,400 on December 31, 2016. Based on an analysis of warranty claims during the past several years, this year’s warranty provision was established at 1.5% of sales, and sales during the year were $2,600,000.Required:What amount of warranty expense will appear on the income statement for the year ended December 31, 2016?What were the actual costs of servicing products under warranty during the year?
- Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018 2017 (in thousands) Gross sales $2,004,719 $1,937,021 $1,835,987 Less: Sales discounts 4,811 4,649 4,406 Less: Sales returns and allowances 2,406 2,324 2,203 Net sales $1,997,502 $1,930,048 $1,829,378 Cost of goods sold 621,463 619,847 660,955 Gross profit $1,376,039 $1,310,201 $1,168,423 Operating expenses 577,369 595,226 583,555 Operating income $798,670 $714,975 $584,868 Other income (expenses) 15,973 (6,070) (8,773) Net income $814,643 $708,905 $576,095 At December 31 2019 2018 2017 (in thousands) Accounts receivable $201,290 $195,427 $182,642 Less: Allowance for doubtful accounts 2,516 2,736 2,192 Net accounts receivable $198,774 $192,691 $180,450 Required: 1. Calculate the following ratios for 2018 and 2019. Round your answers to two decimal places. 2018 2019 a. Gross profit margin 67.88 % 68.89 % b. Operating margin 37.04 39.98 c. Net profit margin х % 36.77 40.78 % d.…Ratio Analysis The following information was taken from Nash Inc.s trial balances as of December 31, 2018, and December 31, 2019. Required: 1. Calculate the net profit margin and accounts receivable turnover for 2019. ( Note: Round answers to two decimal places.) 2. How much does Nash make on each sales dollar? 3. How many days does the average receivable take to be paid (assuming all sales are on account)?Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?