Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 17, Problem 14DQ
Refer to Apple’s financial statements in Appendix A. Compute its profit margin for the years ended September 30, 2017, and September 24, 2016.
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Access the February 21, 2017, filing of the December 31, 2016, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2016, and December 31, 2015. Interpret its profitability using the results obtained for these two years. 1. Profit margin ratio (round the percent to one decimal). 2. Gross profit ratio (round the percent to one decimal). 3. Return on total assets (round the percent to one decimal). (Total assets at year-end 2014 were $5,622,870 in thousands.) 4. Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2014 was $1,519,530 in thousands.) 5. Basic net income per common share (round to the nearest cent).
Use the following tables to answer the question:
LOGIC COMPANY Income Statement For years ended December 31, 2016 and 2017
(values in $) 2016 2017
Gross sales 19,800 15,600
Sales returns and allowances 900 100
Net sales 18,900 15,500
COGS 11,800 8,800
Gross profit 7,100 6,700
Depreciation 780 640
Selling and administrative expenses 2,800 2,400
Research 630 540
Miscellaneous 440 340
Total operating expenses 4,650 3,920
Income before interest and taxes 2,450 2,780
Interest expense 640 540
Income before taxes 1,810 2,240
Provision for taxes 724 896
LOGIC COMPANY Balance Sheet For years ended December 31, 2016 and 2017
(values in $) 2016 2017
Current assets 12,300 9,400
Accounts receivable 16,900 12,900
Merchandise inventory 8,900 14,400
Prepaid expenses 24,400 10,400
Total current assets 62,500 47,100
Building (net) 14,900 11,400
Land 13,900 9,400
Total plant and equipment 28,800 20,800
Total assets 91,300 67,900
Accounts payable 13,400 7,400
Salaries payable 7,500 5,400
Total current…
Compute the following for year 20171. Gross Margin Ratio2. Operating Profit Margin3. Net Profit Margin or Return on Sales4. Return on Equity5. Return on Assets
Chapter 17 Solutions
Principles of Financial Accounting.
Ch. 17 - A companys sales in the prior year were 300,000...Ch. 17 - Prob. 2MCQCh. 17 - What is Ella Companys acid-test ratio? a. 2.39 b....Ch. 17 - Prob. 4MCQCh. 17 - What is Ella Companys equity ratio? a. 25.78% b....Ch. 17 - Explain the difference between financial reporting...Ch. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQ
Ch. 17 - Why is working capital given special attention in...Ch. 17 - What does the number of days sales uncollected...Ch. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 11DQCh. 17 - Prob. 12DQCh. 17 - Prob. 13DQCh. 17 - Refer to Apples financial statements in Appendix...Ch. 17 - Prob. 15DQCh. 17 - Prob. 16DQCh. 17 - Use Samsungs financial statements in Appendix A to...Ch. 17 - Prob. 1QSCh. 17 - Identify which standard of comparison, (a)...Ch. 17 - Prob. 3QSCh. 17 - Prob. 4QSCh. 17 - Prob. 5QSCh. 17 - Prob. 6QSCh. 17 - Mifflin Co. reported the following for the current...Ch. 17 - Prob. 8QSCh. 17 - Prob. 9QSCh. 17 - Prob. 10QSCh. 17 - Prob. 11QSCh. 17 - Prob. 12QSCh. 17 - Prob. 13QSCh. 17 - Prob. 14QSCh. 17 - Which of the following gains or losses would...Ch. 17 - Building blocks of analysis Match the ratio to the...Ch. 17 - Prob. 2ECh. 17 - Prob. 3ECh. 17 - Prob. 4ECh. 17 - Prob. 5ECh. 17 - Prob. 6ECh. 17 - Refer to Simon Companys balance sheets in Exercise...Ch. 17 - Prob. 8ECh. 17 - Prob. 9ECh. 17 - Prob. 10ECh. 17 - Prob. 11ECh. 17 - Prob. 12ECh. 17 - Prob. 13ECh. 17 - Prob. 14ECh. 17 - Prob. 15ECh. 17 - Prob. 16ECh. 17 - In the current year, Randa Merchandising, Inc.,...Ch. 17 - Use the financial data for Randa Merchandising,...Ch. 17 - Selected comparative financial statements of...Ch. 17 - Selected comparative financial statements of...Ch. 17 - Prob. 3APCh. 17 - Selected current year-end financial statements of...Ch. 17 - Comparative ratio analysis Summary information...Ch. 17 - Selected account balances from the adjusted trial...Ch. 17 - Prob. 1BPCh. 17 - Prob. 2BPCh. 17 - Prob. 3BPCh. 17 - Prob. 4BPCh. 17 - Summary information from the financial statements...Ch. 17 - Prob. 6BPCh. 17 - Prob. 17SPCh. 17 - Use Apples financial statements in Appendix A to...Ch. 17 - Prob. 2AACh. 17 - Prob. 3AACh. 17 - Prob. 1BTNCh. 17 - Prob. 3BTNCh. 17 - Prob. 5BTN
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- Obtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com a. What was Target's gross margin percentage for the fiscal year ended February 2, 2019 (2018) and 2017? Use "Sales" for these computations b. What was Target's Return on Sales percentage for 2018 and 2017? Use "Total Revenue" for these computations. c. Target's return on ales percentage for 2017 was higher than it was in 2018. Ignoring taxes, how much higher would Target's 2018 net income have been if it's return on sales percentage in 2018 had been the same as for 2017?arrow_forwardFind the cost of products sold for the third quarter of 2017 in the Notes to the Consolidated Financial Statements. (Enter your answer in millions.)arrow_forwardRequirements: (a) Compute for the percentage of sales for 2016 (b) Make a projected income statement for 2016arrow_forward
- Please see attachment for the data Question : Determine the gross profit to be reported for 2014 Thanks in advancearrow_forwardYou are given the financial statements of a company for over the 6-year periods (2016 –2021). Considering 2016 as the base year, compute the trend index for the following items:a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items.b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items.c. Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.arrow_forwardCalculate Snappy’s operating income for 2016.arrow_forward
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- 1. Calculate operating profit margin ratio and net profit margin ratio for the year 2015, 2016 and 2017.arrow_forwardement. From the following income statement accounts in the popup window, ne income statement for the year. ne operating cash flow for the year. 6 Data Table ne income statement for the year. e income statement below. (Round to the nearest dollar. (Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement Income Statement Accounts for the Year Ending 2017 Year Ending December 31, 2017 Account Cost of goods sold Interest expense Balance $345,000 $82,000 $42,000 $744,000 $66,000 $112.000 Taxes Revenue Selling, general, and administrative expenses Depreciation Print Done income any list or enter any number in the input fields and then continue to the next question. %24 %24 %24 %24arrow_forwardF. Based on Baker’s account balances, the amount of Net Income that would be shown on Baker’s Income Statement for December 2017 would be:arrow_forward
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