Task 1: Consider the company's financials over the most recent years: Fiscal year 2020 2019 2018 2017 Return on Equity Net Profit Margin Total Asset Turnover 5.92% 3.33% 1.66% 1.11% 1.62% 1.13% -0.62% -0.47% 1.11 0.95 0.93 0.84 Evaluate the reasons behind the trend in return on equity (ROE). Lev 1
Q: Determine Mr. Jonsson's employment income for the 2021 taxation year. Ignore all GST/HST and PST…
A: solution:- Step-by-step explanation:- Salary…
Q: Under U.S. GAAP, what should be included in the calculation of depletion? Estimated future…
A: DEPLETION Depletion method is specially suited to mines, oil wells, quarries, sandpits and…
Q: The current asset section of Guardian Consultant's balance sheet consists of cash, accounts…
A: Current liabilities are those which are to be paid off by the entity within a year or less whereas…
Q: Break-Even Analysis The Parents for Better Schools of Fresno, California, collected recipes from…
A: Selling Price per Unit = 20 Sale of 800 units to break even the investment of 3600.
Q: Cullumber Corp. is thinking about opening a soccer camp in southern California. To start the camp,…
A: Solution: IRR=NPV=0 Calculation of NPV Year Amount 12% factor Present value A B A*B…
Q: For the Year Ended December 31, 2024 ($ in thousands) Sales revenue Operating expenses: Cost of…
A: According to the given question, we are required to prepare the statement of cash flows from…
Q: a. What are the cash flows for the project in years 0 through 57 b. Plot the NPV profile for this…
A: Given in the question: Initial Investment $899,000 First Year Sales $806,000 Second…
Q: Ralph Collins founded Collins Consignment Sales Company and the company was operated from his home.…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Winona's furniture received an invoice dated September 27 for five bedrooms sets at $3,000 each. The…
A: The question is based on the concept of Financial Accounting.
Q: Requirement: Journalize each transaction in the general journal referring to the following chart of…
A: Introduction: Journal entries are separate bits of writing that will take up and fill up a journal…
Q: Stacie's Shoes uses the FIFO retail inventory method to determine its ending inventory. The…
A: The inventory is generally reported at the cost in the financial statement. The cost of ending…
Q: The stockholders’ equity of Fremantle Corporation at January 1 follows: 8 Percent preferred stock,…
A: According to the given question, we are required to prepare the T-accounts for the stockholders'…
Q: Question: What is the source documents for Business X sold goods for cash. option: a) invoice…
A: The source document is a document of the first recordation of the transaction, It is printed on…
Q: A telephone company purchased a microwave radio equipment for P6,000,000. Freight and installation…
A: Depreciation should always be calculated on original cost of the asset , where cost of the asset…
Q: Please answer questions 4 and 5 in their entirety. There is an image included to reflect my exact…
A: Contribution Margin A net or per-unit basis might be used to express the contribution margin. It…
Q: “Income transferred to a child is not taxable”. Discuss both for and against this statemen
A: Transferred income to a child is not taxable. Transferring money to a child can be done…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: The Discounted Dividend Model (DDM) is a quantitative method for valuing the price of the shares a…
Q: Prepare a statement of owner's equity for Thompson Computer Services for the current year ended…
A: Introduction:- Retained earnings are the profits that a company is not distributed to the…
Q: Additional information follows: 1. Other expenses, which are paid monthly, include $3,500 of…
A: Cash Budget A cash budget is a projection of a company's cash flows over a given time frame. The…
Q: Wages payable $ 1,000 Accounts receivable $ 7,000 Building 100,000 Accumulated depreciation—Building…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: Scenario: Ralph Collins founded Collins Consignment Sales Company and the company was operated from…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Builder Products, Incorporated, uses the weighted-average method in its process costing system. It…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Ben Efit’s employer provides him with the following benefits during the 2022 taxation year:…
A: Services provided by employer other than salary is known as perquisites. Some perquisites are…
Q: Breckenridge Corporation manufactures a part in a single production process in Department B. The…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Compressed air used in operating paint sprayers for student painters, a company that paints houses…
A: Direct material cost refers to the cost of raw material used in production of the final goods.These…
Q: ACCOUNTING 308 TAX RETURN PROJECT #1 Lance H. and Wanda B. Dean are married and live at 431 Yucca…
A:
Q: Ace Company reports revenues of $40,000 and expenses of $31,000. The company paid $5,000 cash in…
A: Retained earnings are the unallocated profits available for distribution to the shareholders. It is…
Q: The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: February…
A: calculation of sale for November and sale of December and cash collection from sale for each month…
Q: Alternative Inventory Methods Garrett Company has the following transactions during the months of…
A: Lets understand the basics. In first in first out basis company assumes that, goods purchased first…
Q: Definition of a financial shenanigan, and a list of potential financial shenanigans that corporate…
A: financial shenanigan Financial shenanigans are management tactics that deceive investors about a…
Q: Hw.20. Joe Taxpayer has the following items of income- New York state bond interest- $10,000…
A: Federal Taxable Income The portion of your gross income known as "taxable income" is used to…
Q: Specific financial statements (e.g. Income Statement, Balance sheet, etc, state all) that are…
A: What are financial shenanigans? Financial shenanigans are wilful misrepresentation of the true…
Q: 28
A: Generally, the Company purchases another company's business by giving the purchase price to the…
Q: The adjusted account balances of UTV Corp. for the year ended December 31, 2020 are as follows: Cash…
A: Below answer thnks
Q: C3 Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was…
A: Assets An asset is a resource having economic worth that a person, organization, or nation…
Q: Following are the merchandising transactions of Dollar Store. November 1 Dollar Store purchases…
A: A perpetual inventory system is a computer software that makes ongoing estimations of your stock by…
Q: if a trial balance or income state, etc... is post-closing, unadjusted, or adjusted?
A: Trail balance is prepared by the company with an aim to know and verify that the posting entries…
Q: A telephone company purchased a Communications Trainer worth P 250,000. Freight and insurance…
A: Depreciation :— It is decrease in the value of asset due to continuos use of asset. Declining…
Q: Prepare journal entries for the given transactions and post them to the T-accounts. Do not prepare…
A: JOURNAL ENTRIES Date Description Debit Credit…
Q: PB7. LO 3.4 Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales…
A: Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…
Q: Profit-Volume Chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit…
A: Answer a. Maximum Operating Loss will occur when sale is $0. If Sale is $0, then Variable Cost will…
Q: Dayton Corporation began the current year with a retained earnings balance of $16,873. During the…
A: Calculation of year end retained earnings Retained earnings at beginning $16,873 Less:…
Q: damaged. Assume that there are no credit transactions; all amounts are settled in c I with the…
A: Gross profit refers to the sum value of money gained by an entity through its business operations.…
Q: Abdul runs his own public relations business. During the year he incurred $900 on membership of the…
A: A golf club or sports club, or any recreational club, seems to be a business that was founded…
Q: R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for…
A: Break Even Point :— It is the point at which total cost is equal to total revenue. At this point…
Q: One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the…
A:
Q: Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000…
A: "Contribution margin tells you the aggregate amount of revenue available after variable costs to…
Q: The Horstmeyer Corporation commenced operations early in 2024. A number of expenditures were made…
A: INTANGIBLE ASSETS An intangible Assets is an Identifiable non-Monetary Assets without Physical…
Q: Why is the recording of depreciation expense necessary?
A: Introduction:- Depreciation is non cash expenses. Which is charged on fixed asset. Which is charged…
Q: Please help me
A: Journal entries represent the transactions made by the business entity. These transactions are…
Step by step
Solved in 3 steps
- 4. Table 1 below presents some of the financial ratios of Company XYZ for 2019. Table 1. Financial Ratios of Company XYZ, 2019 Value 2.6 12 2.7 16% 2% 20% 60% Ratio Total Asset Turnover Ratio Fixed Asset Turnover Ratio Current Ratio Gross Profit Margin Net Profit Margin Long-term Debt Ratio Total Debt Ratio What is the company's Return on Equity (ROE) for 2019? A. 6.5% B. 13.0% C. 9.6% D. 3.12% Net Protit marigin XTT XProfitability Ratios Financial Ratios Return on Equity Return on Assets Gross Profit Margin Operating Profit Margin Net Profit Margin 2017 9.3% ww 57.21% 38.35% 2018 9.8% 5.0% 56.15% 36.77% | 2019 10.3% 5.2% 55.66% 34.89% 359.82% 359.90% 356.70% 2020 5.3% 2.6% 2021 6.7% 420% 3.4% 54.55% 53.82% 27.40% 28.72% 349.25% Observation/Interpretatio nDIRECTION: Compute the following PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales Return on Equity= Profit/Shareholder's Equity Return on Asset= Profit/Total Asset TREND ANALYSIS Net Income Growth Rate Total Assets Growth Rate And also compute the percentage beside the columns December 31, December 31, PERCENTAGE 2021 2020 USD USD Assets Current assets Cash and cash equivalents 34,115,412 25,681,845 Short-term financial instruments 71,417,748 80,798,680 Short-term financial assets at amortized cost 2,944,705 2,409,853 Short-term financial assets at fair value through profit or loss 35,624 62,452 Trade receivables 35,585,565 27,065,012 Non-trade receivables 3,930,828 3,150,548 Prepaid expenses 2,042,001 1,980,685 Inventories 36,172,043 28,007,314 Other current assets 4,441,629 3,281,589 Assets held-for-sale - 812,370 Total Current Assets…
- Below are the ratio results for Abcom for the year 2022. Performance Operating margin -18.66% Asset turnover 0.16 Return on Capital Employed -7.64% Working capital Inventory days 88.88 days Debtor days 46.18 days Trade creditor days 68.11 days Liquidity Current ratio 0.30 Acid test 0.25 Solvency Interest cover -2.56 Shareholder's view Return on equity 7.16% Required; Analyse and interpret the meaning of these results.Activity on Financial Statement Analysis You are the Financial Manager of Watson Leisure Time Sporting Goods and you have approached Ms. Beatriz Tan, the Manager of SMC Bank to make an investment in your company. Watson Leisure Time Sporting Goods is a company that manufactures golf clubs, baseball bats, basketball goals, and other similar items. In your initial meeting with Ms. Tan, you have pointed out the steady increase in sales and net income. Ms. Tan asked you to make a thorough analysis on the on all areas of the current and future financial health as a basis later of her decision. There was a steady real growth of 2 to 3 percent in gross domestic product during the period under study. The rate of inflation was in the 3 to 4 percent range. The firm does not currently pay a cash dividend, and return to the investor must come from selling the stock in the future. Net income before taxes Taxes Net income Sales (all on credit) Cost of goods sold Gross profit Selling and…The _________ is the internal rate of return a firm must earn on its investment in order to maintain the market value of its stock. a. gross profit margin b. IRR c. Cost of Capital d. net profit margin A snapshot from Violet Flowers Ltd.'s financial information reveals the following for years 2018 and 2019: Item 2018 2019 Long Term Debt $4,600,000 $4,900,000 Interest expense $600,500 $870,000 Dividends $400,000 $590,000 Common Stock $1,740,000 $1,815,000 Additional paid-in surplus $4,200,000 $4,500,000 Violet Flowers' FCF for 2019 was: a. $300,000 b. $515,000 c. $785,000 d. $270,000
- explain each ratio of this list what happened in 2019, 2020, 2021? List of Ratios 2019 2020 2021 Gross Profit Margin 4.96% 4.18% 9.91% Net profit Margin 10.89% 10.12% 9.59% Return on Asset 9.54% 7.92% 8.25% Return on Equity 50.95% 53.44% 49.47%Consider the table given below to answer the following question. Asset value Earnings Year Net investment Free cash flow Return on equity Asset growth rate Earnings growth rate Present value 1 12.00 1.44 1.44 0.00 0.12 0.12 2 13.44 1.61 1.61 0.00 0.12 0.12 0.12 million 3 15.05 1.81 1.81 0.00 0.12 0.12 0.12 4 16.86 2.02 1.52 0.51 0.12 0.09 0.12 5 18.38 2.21 1.65 0.55 0.12 0.09 0.09 6 20.03 2.30 1.80 0.50 0.115 0.09 0.04 7 21.83 2.40 1.31 1.09 0.11 0.06 0.04 8 23.14 2.43 1.39 1.04 0.105 0.06 0.01 9 24.53 1.96 1.47 0.49 0.08 0.06 -0.19 Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7, 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? Assume 10% cost of capital. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. 10 26.00 2.08 1.56 0.52 0.08 0.06 0.06Consider the table given below to answer the following question. Year Asset value Earnings Net investment Free cash flow Return on equity Asset growth rate Earnings growth rate 1 9.00 1.44 1.44 0.00 0.16 0.16 Present value 2 10.44 1.67 1.67 0.00 0.16 0.16 0.16 million 3 4 5 12.11 14.05 15.87 1.94 2.54 2.25 1.94 1.83 2.06 0.00 0.42 0.48 0.16 0.16 0.16 0.16 0.13 0.13 0.16 0.16 0.13 6 7 17.94 20.27 2.78 2.33 0.45 0.155 0.13 0.09 3.04 2.03 1.01 0.15 0.10 0.09 8 9 22.30 24.53 3.23 2.94 2.23 2.45 1.00 0.49 0.145 0.12 0.10 0.10 0.06 -0.09 Assuming that competition drives down profitability (on existing assets as well as new investment) to 15.5% in year 6, 15% in year 7, 14.5% in year 8, and 12% in year 9 and all later years. What is the value of the concatenator business? Assume 13% cost of capital. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. 10 26.98 3.24 2.70 0.54 0.12 0.10 0.10
- GIVE THE COMPARATIVE BALANCE SHEET VERTICAL ANALYSIS FROM THE GIVEN BALANCE SHEET BELOW JOLLIBEE BALANCE SHEET ASSETS ITEM 2016 2017 2018 2019 2020 Cash & Short Term Investments 17.46B 22.52B 24.17B 23.02B 57.46B Cash & Short Term Investments Growth - 28.99% 7.32% -4.75% 149.59% Cash Only 16.73B 21.11B 23.29B 20.89B 21.36B Short-Term Investments 726M 1.41B 883.2M 2.13B 36.1B Cash & ST Investments / Total Assets 23.96% 25.08% 16.06% 12.28% 27.26% Total Accounts Receivable 3.59B 4.02B 4.86B 5.91B 7.05B Total Accounts Receivable Growth - 11.86% 21.04% 21.46% 19.36% Accounts Receivables, Net 3.03B 3.39B 4.41B 5.37B 5.8B Accounts Receivables, Gross 3.61B 4.08B 5.09B 5.76B 6.46B Bad Debt/Doubtful Accounts (579.79M) (690.12M) (676.91M) (392.36M) (658.63M) Other Receivable 562.75M 630.06M 451.73M 536.62M 1.25B…Using the Du Pont Identity Method, calculate return on equity given the following information. Profit margin 16%; total asset turnover 0.85; equity multiplier 1.5. OA. OB. O C. O D. OE 20.40% 21.40% 22.40% 23.40% 24.40%8. Trend Ratios, Application of some Financial Ratios and their Interpretation Some of the balance sheet and income statement figures of Sapphire Mfg. CO. for 2016, 2017 and 20181 are as follows. 2018 P30,000 2016 2017 Quick assets P40,000 P48,000 65,000 25,000 80,000 50,000 Current assets 50,000 40,000 110,000 200,000 Investments 160,000 135,000 Plants, property and equipment, net Total assets 250,000 265,000 Current liabilities 45,000 50,000 100,000 75,000 Long Term debt Total stockholders' equity 40,000 50,000 105,000 125,000 125,000 Total liabilities and stockholders' Equity 200,000 400,000 240,000 250,000 265,000 Sales 375,000 500,000 Cost of goods sold Operating expenses (including Depreciation of P10,000) 255,000 290,000 110,000 95,000 105,000 Net income 50,000 50,000 130,000 a) Compute for the trend ratios based on the above given data and give your interpretation of the 2017 and 2018 figures.
