Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 14, Problem 14.8E
(a)
To determine
To compute: Profit margin of Q Company for 2017.
(b)
To determine
To compute: Asset turnover of Q Company for 2017.
(c)
To determine
To compute: Return on assets of Q Company for 2017.
(d)
To determine
To compute: Return on common
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31. _2017 2016_ Net sales…
Selected information from the comparative financial statements of AppleVerse Company for the year ended December 31
appears below:
2018
2017
Php
Php
Accounts receivable (net)
175,000
200,000
Inventory
130,000
150,000
Total assets
1,100,000 800,000
Current liabilities
140,000
110,000
Long-term debt
410,000
300,000
Net credit sales
800,000
700,000
Cost of goods sold
600,000
530.000
Interest expense
40.000
25,000
Income tax expense
60.000
29,000
Net income
150.000
85,000
Net cash provided by operating
220,000
135,000
activities
Compute for the Receivables Turnover for 2018.
O 2.13
O 4.27
O 5.95
O 3.23
Selected information from the comparative financial statements
of Barcelona Company for the year ended December 31 appears
below:
2017
2016
Accounts receivable (net)
$200,000
175,000
Inventory
170,000
130,000
Total assets
1,100,000
800,000
Current liabilities
140,000
110,000
Long-term debt
300,000
410,000
Net credit sales
900,000
700,000
Cost of goods sold
530,000
600,000
Interest expense
40,000
25,000
Income tax expense
60,000
29,000
Net income
120,000
85,000
Net cash provided by operating activities
250,000
135,000
Instructions
Answer the following questions relating to the year ended
December 31, 2017. Show computations.
1. The inventory turnover for 2017 is
2. The number of times interest earned in 2017 is
3. The accounts receivable turnover for 2017 is
4. The return on assets for 2017 is
Chapter 14 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 14 - (a) Jose Ramirez believes that the analysis of...Ch. 14 - (a) Distinguish among the following bases of...Ch. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - What do the following classes of ratios measure?...Ch. 14 - What is the difference between the current ratio...Ch. 14 - Hizar Company, a retail store, has an accounts...
Ch. 14 - Which ratios should be used to help answer the...Ch. 14 - The price-earnings ratio of General Motors...Ch. 14 - What is the formula for computing the payout...Ch. 14 - Holding all other factors constant, indicate...Ch. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - Prob. 18QCh. 14 - Prob. 19QCh. 14 - Why is it important to report discontinued...Ch. 14 - You are considering investing in Wingert...Ch. 14 - Prob. 22QCh. 14 - Prob. 23QCh. 14 - You recently received a letter from your Uncle...Ch. 14 - Prob. 14.2BECh. 14 - Using the following data from the comparative...Ch. 14 - Using the same data presented above in BE14-3 for...Ch. 14 - Net income was 500,000 in 2016, 450,000 in 2017,...Ch. 14 - Prob. 14.6BECh. 14 - Prob. 14.7BECh. 14 - Prob. 14.8BECh. 14 - Prob. 14.9BECh. 14 - Prob. 14.10BECh. 14 - The following data are taken from the financial...Ch. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - On June 30. Holloway Corporation discontinued its...Ch. 14 - Prob. 14.1DICh. 14 - Prob. 14.2DICh. 14 - In its proposed 2017 income statement. Hrabik...Ch. 14 - Financial information for Kurzen Inc. is presented...Ch. 14 - Operating data for Navarro Corporation are...Ch. 14 - The comparative condensed balance sheets of Gurley...Ch. 14 - The comparative condensed income statements of...Ch. 14 - Suppose Nordstrom, Inc., which operates department...Ch. 14 - Keener Incorporated had the following transactions...Ch. 14 - Frizell Company has the following comparative...Ch. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Wiemers Corporations comparative balance sheets...Ch. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Comparative statement data for Farris Company and...Ch. 14 - The comparative statements of Painter Tool Company...Ch. 14 - Prob. 14.3APCh. 14 - Financial information for Messersmith Company is...Ch. 14 - Prob. 14.5APCh. 14 - Prob. 14.6APCh. 14 - Prob. 14.7APCh. 14 - Prob. 14.8APCh. 14 - Prob. 14.9APCh. 14 - Financial Reporting Problem: Apple Inc. Your...Ch. 14 - PepsiCos financial statements are presented at...Ch. 14 - Prob. 14.3BYPCh. 14 - As the CPA for Gandara Manufacturing Inc., you...Ch. 14 - The Management Discussion and Analysis section of...Ch. 14 - Prob. 14.6BYPCh. 14 - Dave Schonhardt, president of Schonhardt...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yieldarrow_forwardMeasures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yieldarrow_forwardOperating data for Navarro Corporation are presented below: 2017 2016 Net sales $750,000 $600,000 Cost of goods sold 465,000 390,000 Selling expenses 105,000 66,000 Administrative expenses 60,000 54,000 Income tax expense 36,000 27,000 Net income 84,000 63,000 Instructions: Prepare a schedule showing a vertical analysis for 2017 and 2016?arrow_forward
- The following information is available for Crest Company: Annual Data 2013 2012 Sales revenue $6,600,000 $6,000,000 Cost of goods sold 4,008,400 3,720,000 Net income 310,300 264,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total assets $2,750,000 $2,360,000 Common stockholders' equity 1,800,800 1,800,000 Calculate the following ratios for 2013: a. Gross profit percentage b. Return on salesarrow_forwardOperating data for Flounder Corp. are presented below. 2017 2016 Sales revenue $825,400 $628,400 Cost of goods sold 527,300 412,700 Selling expenses 125,600 76,800 Administrative expenses 75,500 52,800 Income tax expense 36,700 29,200 Net income 60,300 56,900 Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.1%.)arrow_forwardThe comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATIONComparative Condensed Income StatementsFor the Years Ended December 31 2017 2016 Net sales $726,000 $661,000 Cost of goods sold 531,300 462,000 Gross profit 194,700 199,000 Operating expenses 137,500 132,000 Net income $ 57,200 $ 67,000 (a)Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATIONCondensed Income Statements Increase or (Decrease)During 2017 2017 2016 Amount Percentage Net sales $726,000 $661,000 $ % Cost of goods sold 531,300 462,000 % Gross profit…arrow_forward
- The comparative statements of Corbin Company are presented below. CORBIN COMPANYIncome StatementFor the Years Ended December 31 2017 2016 Net sales (all on account) $600,500 $520,200 Expenses Cost of goods sold 414,600 354,200 Selling and administrative 119,900 113,300 Interest expense 8,200 5,100 Income tax expense 17,100 14,700 Total expenses 559,800 487,300 Net income $ 40,700 $ 32,900 CORBIN COMPANYBalance SheetsDecember 31 Assets 2017 2016 Current assets Cash $ 21,100 $ 17,600 Short-term investments 17,100 15,200 Accounts receivable (net) 86,100 73,000 Inventory 89,400 70,100 Total current assets 213,700 175,900 Plant assets (net) 423,800 383,200 Total assets $637,500 $559,100 Liabilities and Stockholders’ Equity…arrow_forwardThe following amounts were taken from the financial statements of Blue Spruce Corp.: 2017 2016 Total assets $821000 $1017000 Net sales 744000 656000 Gross profit 366000 321000 Net income 111000 118000 Weighted average number of 97500 97500 common shares outstanding Market price of common stock $49 $46 The profit margin ratio for 2017 is 14%. 18%. 16%. 15%.arrow_forwardSelected financial statement data for Schmitzer Inc. is shown below: 2016 2015 Balance sheet: Inventories 60,000 48,000 Ratios: Gross profit ratio for 2016 Inventory turnover ratio for 2016 40% What was the amount of net sales for 2016?arrow_forward
- Profitability ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 20Y6, and 20Y5: December 31 20Y7 December 31 20Y6 December 31 20Y5 Total assets $307,000 $277,000 $247,000 Notes payable (8% interest) 100,000 100,000 100,000 Common stock 40,000 40,000 40,000 Preferred 6% stock, $100 par (no change during year) Retained earnings 20,000 109,920 20,000 80,240 20,000 60,000 The 20Y7 net income was $30,880, and the 2016 net income was $21,440. No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round your answers to one decimal place. 20Y7 20Y6 Return on total assets Return on stockholders' equity Return on common stockholders' equity % % % % % % b. The profitability ratios indicate…arrow_forwardOperating data for Azam Corporation are presented below 2018 2017 Net Sales Rs. 750,000 Rs. 600,000 Cost of Goods Sold 480,000 408,000 Selling Expenses 105,000 84,000 Administrative Expense 75,000 54,000 Income Tax Expense 36,000 18,000 Net Income 54,000 36,000 Required: Prepare a schedule showing a vertical analysis for 2018 and 2017arrow_forwardComparative financial statement data for Flounder Corp. and Blue Spruce Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017. Flounder Corp. Blue Spruce Corp. 2017 2017 Net sales $1,908,000 $657,200 Cost of goods sold 1,245,500 360,400 Operating expenses 299,980 103,880 Interest expense 9,540 4,028 Income tax expense 90,100 38,160 Current assets 444,000 199,036 Plant assets (net) 563,920 148,112 Current liabilities 70,305 35,739 Long-term liabilities 115,010 43,125 Net cash provided by operating activities 146,280 38,160 Capital expenditures 95,400 21,200 Dividends paid on common stock 38,160 15,900 Weighted-average number of shares outstanding 80,000 50,000 (a)Compute the net income and earnings per share for each company for 2017. (Round Earnings per share to 2 decimal places, e.g. $2.78.) Net Income Earnings per share Flounder Corp. $…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License