a.
Concept Introduction:
Every business prepares four financial statements from the summarized accounting data, at the end of the accounting period. These financial statements include statements like an income statement that presents revenue, expenses, net income or loss, and a
The total assets, receivables net revenues, and net income for given companies in 2015.
b.
Concept Introduction:
Every business prepares four financial statements from the summarized accounting data, at the end of the accounting period. These financial statements include statements like an income statement that presents revenue, expenses, net income or loss, a balance sheet that shows the financial position of the company.
The conclusion was drawn from the selected information from two companies.
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ACCOUTING PRIN SET LL INCLUSIVE
- The following information (in $ millions) comes from the Annual Report of Saratoga Springs Company for the year ending 12/31/2024: Year ended 12/31/2024 $ 8,139 4,957 2,099 Net sales Cost of goods sold Selling and administrative expense Interest expense Income before taxes Net income Cash and cash equivalents Receivables, net Inventories Land, buildings and equipment at cost, net Total assets Total current liabilities Long-term debt Total liabilities Total stockholders' equity 606 477 648 Profit margin on sales 12/31/2024 $ 1,165 1,200. 1,245 13,690 $ 17,300 $ 5,937 5,781 $ 11,718 $5,582 Required: Compute the profit margin on sales for 2024. Note: Round your answer to 1 decimal place, e.g., 0.1234 as 12.3%. 12/31/2023 $ 83 854 709 4,034 $ 5,680 $ 2,399 2,411 $ 4,810 $ 870arrow_forwardUse the information provided below to prepare the Statement of Financial Position of Lynwood Limited as at 31 August 2023. The notes to the financial statements are not required. Show all workings. INFORMATION The following balances were obtained from the accounting records of Lynwood Limited after some of the adjustments and closing transfers were completed on 31 August 2023, the end of the financial year. R Inventory 315 000 Accounts receivable 92 000 Loan: Lindor Bank (19.5%) 200 000 Equipment (Cost) 1 980 000 Accumulated depreciation on equipment? Cash float 13 500 Accounts payable 211 000 Provision for bad debts? Accrued income? Ordinary share capital 1 161 000 Retained income 540 000 Company tax payable 18 000 Bank (DR) 99 000 Accrued expenses? Dividends payable 161 000 The following adjustments must be made: The account of a debtor who owed R2 000 must be written off. The provision for bad debts must be adjusted to 5% of debtors. The rent income account reflected a total of R99…arrow_forwardThe condensed income statement and comparative balance sheet of Donald Corporation as of December 31, 2022 and 2021, are provided below. Other financial data is also given. DONALD CORPORATIONCondensed Income StatementYear Ended December 31, 2022 Revenues $ 671,500 Costs and Expenses Cost of Goods Sold 428,600 Salaries Expense 124,600 Depreciation Expense 14,600 Advertising Expense 14,500 Utilities Expense 17,600 Total Costs and Expenses $ 599,900 Net Income Before Income Taxes 71,600 Income Taxes Expense 17,900 Net Income After Income Taxes $ 53,700 DONALD CORPORATIONComparative Balance SheetDecember 31, 2022 and 2021 Assets 2022 2021 Cash $ 72,600 $ 67,000 Accounts Receivable (Net) 55,050 51,600 Merchandise Inventory 48,600 53,400 Prepaid Advertising 7,600 9,400 Property, Plant, and Equipment 120,000 96,000 Less: Accumulated…arrow_forward
- The following information is available for CANDY GH, a limited liability company: Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31st December 2016 GH¢000 Revenue 7,659 Costs of sales (5442) Gross profit 2,217 Operating expenses (1,167) Operating profit 1,050 Interest expenses (150) Operating profit before tax 900 Tax expense (420) Net profit after tax transferred to reserves 480 Statement of Financial Position as at 31st December: Non-current assets 2016 GH¢000 2015 GH¢000 Costs 2,160 1,785 accumulated depreciation (1,020) (870) Carrying value 1,140 915 Intangible assets 750 600 Investment property - 75 Total Non-current assets 1,890 1,590 Current assets Inventory 450 306 Trade receivables 1,170 945 Cash & cash equivalents 156 3 Total current assets 1,776 1,254 Total assets 3,666…arrow_forwardThe following is a partial listing of accounts for XYZ, Inc., for the year ended December 31, 2020. Required: Prepare multiple step income statement for the year of 2020. Finished Goods Current Maturities of Long-Term Debt Accumulated Depreciation Accounts Receivable $ 38,872 2,515 19,960 Sales Revenue 6,273 127,260 Treasury Stock 251 Prepaid Expenses 2,199 Deferred Taxes (long-term liability) 8,506 Interest Expense 2,410 Allowance for Doubtful Accounts 915 Retained Earnings 18,951 Raw Materials 9,576 Accounts Payable 19,021 Cash and Cash Equivalents 8,527 Sales Salaries Expense 872 Cost of Goods Sold 82,471 Investment in Unconsolidated 3,559 Subsidiaries Income Taxes Payable 8,356 Work In Process 1,984 Additional Paid-In Capital 9,614 Equipment 41,905 Long-Term Debt 15,258 Rent Income 2,468 Common Stock 3,895 Notes Payable (short-term) 6,156 Income Tax Expense 2,461arrow_forwardThe following information is from the 2014 annual report of Weber Corporation, a company that supplies manufactured parts to the household appliance industry. Average Total Assets Average Interest - Bearing Debt Average Other Liabilities Average Shareholder's Equity Sales Interest Expense Net Income 24,500,000 10,000,000 2,250,000 12,250,000 49,000,000 800,000 2,450,000 Required: 1. Compute Weber Corporation's return on assets (ROA) for 2014 using a combined federal and state income tax rate of 40% where needed. 2. Compute the profit margin and asset turnover components of ROA for 2014. 3. Weber's management believes that various business initiatives will produce an asset turnover rate of 2.25 next year. If the profit margin next year is unchanged from 2014, what will be the company's ROA?arrow_forward
- Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123,152 Selling, general and administrative 13,876 Preopening expenses 68 Operating Income 4,480 Other income (expense) Interest expense 159 Interest income and other, net (121) Income before income taxes 4,442 Provision for income taxes 1,263 Net income including noncontrolling interests 3,179 Net income attributable to noncontrolling interests (45) Net income attributable to Costco $3,134 Costco Wholesale Corporation Consolidated Balance Sheets ($ millions, except par value and share data) September 2, 2018 September 3, 2017 Current assets Cash and cash equivalents $6,055 $4,546 Short-term investments 1,204 1,233 Receivables, net 1,669 1,432 Merchandise…arrow_forwardPharoah Corporation recently filed the following financial statements with the SEC. Pharoah CorporationIncome Statement for the FiscalYear Ended July 31, 2017 Net sales $77,630 Cost of products sold 55,218 Gross profit $22,412 Selling, general, and administrative expenses 9,893 Depreciation 1,124 Operating income (loss) $11,395 Interest expense 688 Earnings (loss) before income taxes $10,707 Income taxes 3,748 Net earnings (loss) $6,959 What are the company’s current ratio and quick ratio? (Round answers to 2 decimal places, e.g. 52.75.) Current ratio Quick ratioarrow_forwardBalance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123,152 Selling, general and administrative 13,876 Preopening expenses 68 Operating Income 4,480 Other (income) expense Interest expense 159 Interest income and other, net (121) Income before income taxes 4,442 Provision for income taxes 1,263 Net income including noncontrolling interests 3,179 Net income attributable to noncontrolling interests (45) Net income attributable to Costco $3,134 What is the NOPAT for these figures?arrow_forward
- Selected comparative financial statements of Korbin Company follow. Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Assets Current assets Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities Assets Current assets Long-term investments Plant assets, net Total assets 2021 2020 2019 $ 483,981 $ 370,769 $ 257,300 291,357 234,326 164,672 192,624 136,443 92,628 68,725 33,964 43,558 21,356 112,283 80,341 14,943 $ 65,398 $ 41,856 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 2021 $ 57,843 0 51,166 32,628 83,794 52,649 10,793 $ 23,890 66,000 $ 20,253 Common stock 66,000 Other paid-in capital 8,250 Retained earnings 41,423 Total liabilities and equity $…arrow_forward[The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales. Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments. Plant assets, net Total assets Liabilities and Equity Current liabilities KORBIN COMPANY Comparative Balance Sheets 2020 2021 $548,688 $ 420,340 330,310 263,974 218,378 156,366 77,914 58,007 49,382 36,990 127,296 94,997 91,082 61,369 16,941 12,581 $ 74,141 $ 48,788 Common stock Other paid-in capital Retained earnings Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income December 31 2021 $ 62,574 % 0 % $ 41,881 $ 55,985 1,200 3,920 114,438 103,962 61,920 $177,012 $ 147,043 $ 121,825 $ 25,844 65,000 8,125…arrow_forwardComparing Two Companies in the Same Industry: Under Armour and Columbia Sportswear The following information is available from the financial statements included in Form 10-K for fiscal years 2014 and 2013 for Under Armour, Inc. and Columbia Sportswear Company (in thousands of dollars): Under Armour, Inc. Columbia Sportswear Company Net revenues (Net sales for Under Armour, Inc. & Columbia Sportswear) for the year ended December 31, 2014 $3,084,370 $2,100,590 Accounts receivable, net: December 31, 2014 279,835 344,390 December 31, 2013 209,952 306,878 Required: 1. Calculate the accounts receivable turnover ratios for both companies for the most recent year. Assume all sales are on credit. Round your answers to 2 decimal places. Under Armour fill in the blank 1 times Columbia Sportswear fill in the blank 2 times 2. Calculate the average length of time it takes each company to collect its accounts receivable. Use 360 days and round intermediate…arrow_forward
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