EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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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…
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).
Following are income statements for Hossa Corporation for 2017 and 2016. Percentage of sales amounts are also shown for each operating expense item. Hossa’s income tax rate was 38% in 2016 and 40% in 2017.
How do you calculate the cause of change analysis past sales?
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- Oriole Corporation recently filed the following financial statements with the SEC. Look at the image for the balance sheet and more! Oriole 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 Use the DuPont identity to calculate the return on equity (ROE). In the process, calculate the following ratios: net profit margin, total asset turnover, equity multiplier, EBIT return on assets (EROA), and return on assets. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % Total asset turnover Equity multiplier EBIT return on assets % Return on assets %…arrow_forwardThis problem is based on the 2017 annual report of Campbell Soup Company. Answer the following questions. Refer to the Selected Financial Data for parts (a) to (d).Required: Find the net sales in 2014. (Enter your answer in millions.) Calculate the operating income (earnings before interest and taxes) in 2013. (Enter your answer in millions.) Calculate the difference between operating income (earnings before interest and taxes) and net income (net earnings) in 2015. (Enter your answer in millions.) Find the year(s) in which net income (net earnings) decreased compared to the previous year. attatched are the charts needed for the following questions, I have tried to figure these out but I come up with incorrect answers. Thank Youarrow_forwardYou are given the following information about Sheridan Plumbing Company. Revenues in 2017 totaled $ 908, depreciation expenses $ 77, costs of goods sold $ 374, and interest expenses $ 71. At the end of the year, current assets were $ 136 and current liabilities were $ 117. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25) Sheridan Plumbing CompanyIncome Statementarrow_forward
- The 2017 annual report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2017 0000 December 31, 2016 Total assets $930.9 $920.1 Total liabilities 197.1 208.6 Net sales 515.7 517.4 Net income 80.7 67.2 Instructions Compute the following ratios for Tootsie Roll for 2017. a. Asset turnover. b. Return on assets. c. Profit margin on sales. d. How can the asset turnover be used to compute the return on assets?arrow_forwardYou are given the following information about Sandhill Plumbing Company. Revenues in 2017 totaled $ 917, depreciation expenses $ 85, costs of goods sold $ 399, and interest expenses $ 62. At the end of the year, current assets were $ 150 and current liabilities were $ 111. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25) Sandhill Plumbing CompanyIncome Statementchoose the accounting period Amount select an income statement item $ enter a dollar amount select an income statement item enter a dollar amount select a summarizing line for the first part $ enter a total amount for the first part select an income statement item enter a dollar amount select a summarizing line for the second part $ enter a total amount for the second part select an income statement item enter a dollar amount select a summarizing line for the…arrow_forwardYou are given the following information about Sandhill Plumbing Company. Revenues in 2017 totaled $ 917, depreciation expenses $ 85, costs of goods sold $ 399, and interest expenses $ 62. At the end of the year, current assets were $ 150 and current liabilities were $ 111. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25) Sandhill Plumbing CompanyIncome Statementchoose the accounting period Amount select an income statement item $ enter a dollar amount select an income statement item enter a dollar amount select a summarizing line for the first part $ enter a total amount for the first part select an income statement item enter a dollar amount select a summarizing line for the second part $ enter a total amount for the second part select an income statement item enter a dollar amount select a summarizing line for the…arrow_forward
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- Below are Financial Positionsstatement for Dawson Co at 31 December 2015 and 31 December 2016 and the Statement of Comprehensive Income for the year ended 31 December 2016. Statement of Comprehensive Income for the year ended 31 December 2016 2016 $ 000 Revenue 900 Cost of sales (550) Gross profit 350 Expenses (245) Finance Costs (9) Profit on sale of equipment 7 Profit before tax 103 Income tax expense (30) Profit for the period 73 Statements of Financial Position at 31 December 2016 2016 2015 $ 000 $ 000 Non-current assets: Property, plant and equipment 528 447 Development costs 110 93 638 540 Current assets Inventory 413 380 Trade Receivables 238 215 Investments 28 - Cash 111 4 790 599 Total Assets 1,428 1,139 Equity and liabilities Ordinary shares of $1 each…arrow_forward[The following information applies to the questions displayed below.) The income statement for Pruitt Company summarized for a four-year period shows the following: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 2016 $2,032,000 2017 $2,464,000 2018 $2,704,000 2019 $2,988,000 1,497,000 1,622,000 1,776,000 2,097,000 535,000 842,000 928,000 891,000 486,000 496,000 523,000 529,000 49,000 346,000 405,000 362,000 14,700 103,800 121,500 108,600 $34,300 $242,200 $283,500 $253,400 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The company uses a periodic inventory system. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 亞arrow_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_forward
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