FINANCIAL ACCOUNTING-TEXT
6th Edition
ISBN: 2810023103767
Author: DYCKMAN
Publisher: CAMB BUS
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Question
Chapter 1, Problem 46CP
a.
To determine
Prepare income statements of Company S for the years ended September 30, 2018 and October 1, 2017.
b.
To determine
Compute the return on equity ratio of company S for the year 2018 and 2017.
c.
To determine
Ascertain the debt-to-equity ratio for the year 2018 and 2017.
d.
To determine
Indicate the effect of one-time litigation charge on the company’s return on equity ratio.
e.
To determine
Discuss the costs and benefits of disclosing the information about the pending litigation in its 2017 annual report.
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Compute DuPont Analysis Ratios
Selected balance sheet and income statement information for Humana Inc., a health and well-being company, follows.
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$
$
Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE.
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Net 2018 2017 Stockholders' Stockholders'
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0
b. Profit margin (PM)
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Numerator
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0 $
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Equity
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0
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Calculate the financial indicators of the firm Merck for the year 2018 and fill in the spaces marked in the table.
Company Name:
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Chemicals and Allied Products Industry Ratios
…………..
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Debt ratio
….
….
0.47
Debt-to-equity ratio
….
….
0.38
Interest coverage ratio
….
….
-9.43
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Current ratio
….
….
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Quick ratio
….
….
2.12
Cash ratio
….
….
2.24
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….
….
-93.4%
ROE (Return on equity), after tax
….
….
-248.5
ROA (Return on assets)
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1.08
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The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
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Assets
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Cash
$
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Bank loans
$
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Marketable securities
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Accounts payable
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Accounts receivable
111
Inventory
155
Total current assets
$
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$
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Fixed assets:
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Long-term debt
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Net worth (equity and retained earnings)
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Dynamic MattressYear-End Balance Sheet for 2017(figures in $ millions)
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Chapter 1 Solutions
FINANCIAL ACCOUNTING-TEXT
Ch. 1 - Prob. 1MCCh. 1 - Prob. 2MCCh. 1 - Prob. 3MCCh. 1 - Prob. 4MCCh. 1 - Prob. 5MCCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5Q
Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10QCh. 1 - Prob. 11QCh. 1 - Prob. 12QCh. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - Prob. 19MECh. 1 - Prob. 20MECh. 1 - Prob. 21MECh. 1 - Prob. 24MECh. 1 - Prob. 25MECh. 1 - Prob. 26MECh. 1 - Prob. 27ECh. 1 - Prob. 28ECh. 1 - Prob. 29ECh. 1 - Prob. 30ECh. 1 - Prob. 31ECh. 1 - Prob. 32ECh. 1 - Prob. 33ECh. 1 - Prob. 34ECh. 1 - Prob. 35ECh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - Prob. 44PCh. 1 - Prob. 45PCh. 1 - Prob. 46CPCh. 1 - Prob. 47CPCh. 1 - Prob. 48CPCh. 1 - Prob. 49CPCh. 1 - Prob. 50CP
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