Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Question
Chapter 15, Problem 18BEA
To determine
Compute the value of return on sales.
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Compute the component percentages for Trixy Magic's Income statement below. (Enter your answers as a percentage rounded to 2
decimal place (i.e. 0.1234 should be entered as 12.34). Enter all answers as positive values.)
Net sales
Cost of sales
Gross margin
Expenses
Selling, general, and administrative
Depreciation
Interest-net
Total expenses
Pre-tax earnings
Income tax provision
Net earnings
TRIXY MAGIC, INC.
Consolidated Statements of Earnings
(in millions)
Fiscal 2018
$
$
48,236
31,732
16,504
11,093
1,547
294
12,934
3,570
1,328
2,242
% Sales
100.00 %
%
Fiscal Years Ended on
% Sales
Fiscal 2017
$
$
48,284
31,558
16,726
10,534
1,373
201
12,108
4,618
1,719
2,899
100.00 %
%
Fiscal 2016 % Sales
S
46,930
30.741
16,198
३
9,746
1,171
156
11,073
5,125
1,910
3.215
100.00 %
Refer to the information for Sundahl Company on the previous page.Required:1. Prepare a common-size income statement for Year 1 by expressing each line item as apercentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)2. Prepare a common-size income statement for Year 2 by expressing each line item as apercentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
For this question, calculate all values to 2 decimal places of ÂŁM (e.g. ÂŁ123.45M) unless
otherwise specified, and all ratios to 2 decimal places of percentage (e.g. 9.87%).
You are given the following income statements and balance sheets for Freddie M
Corporation for fiscal years 2045 and 2046 (all figures are in ÂŁ million),
Income Statement
Balance Sheet
Sales
Cost of goods sold
Gross margin
Wage & salaries expense
Depreciation expense
Earnings before interest and tax
Interest expenses
Taxes
Net income
Dividends
Change in shareholder's equity
Assets:
Cash & equivalents
Receivables
Inventories
Current Assets
Property, plant & equipment
Accumulated depreciation
Net property, plant & equip
Total Assets
2045
400.00
-200.00
200.00
-50.00
-25.00
125.00
-25.00
-60.00
40.00
-16.00
24.00
2045
2046
480.00
-240.00
240.00
-60.00
-25.00
155.00
-20.00
-70.00
65.00
-26.00
39.00
2046
Liabilities:
30.00
36.00 Payables
60.00 Short-term debt
50.00
50.00 60.00 Long-term debt
130.00 156.00 Total…
Chapter 15 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 15 - Name the two major types of financial statement...Ch. 15 - Prob. 2DQCh. 15 - Explain how creditors, investors, and managers can...Ch. 15 - What are liquidity ratios? Leverage ratios?...Ch. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - A high inventory turnover ratio provides evidence...Ch. 15 - A loan agreement between a bank and a customer...Ch. 15 - Prob. 10DQ
Ch. 15 - Explain why an investor would be interested in a...Ch. 15 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - When a company participates in a stock buyback...Ch. 15 - Explain the significance of the inventory turnover...Ch. 15 - In a JIT manufacturing environment, the current...Ch. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Fractions or percentages computed by dividing one...Ch. 15 - Prob. 4MCQCh. 15 - Pedee Companys inventory turnover in days is 80...Ch. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQCh. 15 - A small pizza restaurant, founded and owned by the...Ch. 15 - Prob. 10MCQCh. 15 - Prob. 11BEACh. 15 - Scherer Company provided the following income...Ch. 15 - Chen Company has current assets equal to...Ch. 15 - Last year, Nikkola Company had net sales of...Ch. 15 - Last year, Nikkola Company had net sales of...Ch. 15 - Paxton Company provided the following income...Ch. 15 - Ernst Companys balance sheet shows total...Ch. 15 - Prob. 18BEACh. 15 - Prob. 19BEACh. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - Jasmine Company provided the following income...Ch. 15 - Jasmine Company provided the following income...Ch. 15 - LoLo Lemon Company has current assets equal to...Ch. 15 - Last year, Tobys Hats had net sales of 45,000,000...Ch. 15 - Last year, Tobys Hats had net sales of 45,000,000...Ch. 15 - Alessandra Makeup Manufactures provided the...Ch. 15 - Klynveld Companys balance sheet shows total...Ch. 15 - Prob. 31BEBCh. 15 - Prob. 32BEBCh. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - Sundahl Companys income statements for the past 2...Ch. 15 - Sundahl Companys income statements for the past 2...Ch. 15 - Cuneo Companys income statements for the last 3...Ch. 15 - Cuneo Companys income statements for the last 3...Ch. 15 - Prob. 41ECh. 15 - Upton Company has current assets equal to...Ch. 15 - Montalcino Company had net sales of 54,000,000....Ch. 15 - Whalen Company had net sales of 125,500,250,000....Ch. 15 - Prob. 45ECh. 15 - Prob. 46ECh. 15 - Bryce Company manufactures pet supplies. However,...Ch. 15 - Prob. 48ECh. 15 - Prob. 49ECh. 15 - Juroe Company provided the following income...Ch. 15 - Juroe Company provided the following income...Ch. 15 - Juroe Company provided the following income...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - The following selected information is taken from...Ch. 15 - Grammatico Company has just completed its third...Ch. 15 - The following information has been gathered for...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Prob. 60PCh. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Albion Inc. provided the following information for...Ch. 15 - Prob. 65PCh. 15 - Prob. 66PCh. 15 - Prob. 67C
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