Intermediate Accounting, 17th Edition
17th Edition
ISBN: 9781119503682
Author: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
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Prepare the income statements and balance sheets for years 2018 and 2019 for Thompson Company using the following information. The balance sheet numbers are at the end of year figures.Item20182019Accounts Payable120.0150.0Accounts Receivable150.0180.0Accumulated Depreciation330.0360.0Cash & Cash Equivalents10.012.0Common Stock150.0200.0Cost of Goods Sold750.0850.0Depreciation25.030.0Interest Expense30.033.0Inventory200.0180.0Long-term Debt150.0150.0Gross Plant & Equipment650.0780.0Retained Earnings208.5225.0Sales1,500.01,700.0SG&A Expenses500.0570.0Notes Payable51.567.0Tax Rate21%21%(2) Answer the following questions:(a) How much did Thompson Company spend in acquiring fixed assets in 2019?(b) How much dividend did Thompson Company pay out during 2019?(c) Using the end of year numbers, did the long-term solvency ratios improve or deteriorate from 2018 to 2019? Answer this question using at least two long-term solvency ratios.(d) Using the end of year numbers, did the asset…
As per the latest annual report, the following information is made available from
the financial statements of ABC Inc. for the year 2019.
Sales
COGS
EBIT
EBITDA
Interest Expense
Net Income
Total Debt
Total Assets.
Particulars
Net Fixed Assets
Total Equity
Current Assets
Current Liabilities
Cash & Cash Equivalents
Accounts Receivables
Inventories
Accounts Payable
Required:
Amount (in millions)
Current Ratio
Quick Ratio
Cash Ratio
Debt to Equity Ratio
Debt Ratio
Receivables Turnover Ratio
Inventory Turnover Ratio.
Gross Margin
Operating Profit Margin
Net Margin
£250,174
£151,782
£53,930
(a) You are required to calculate the following ratios:
£66,477
£3,576
£45,256
£98,047
£328,516
£27,378
£80,488
£152,819
£95,718
£38,844
£12,926
£4,106
£46,236
b) After calculating all 10 ratios, explain how the above results can aid ABC Inc's
decision making process.
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the
income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in
thousands of dollars.
Revenue
Cost of goods sold
Depreciation
Inventories
Administrative expenses
Interest expense
Federal and state taxes*
Accounts payable
Accounts receivable
Net fixed assets
Long-term debt
Notes payable
Dividends paid
Cash and marketable securities
Fincorp Inc.
Income Statement
Reinvested earnings
2018
$4,000
1,600
$
500
300
500
150
400
300
400
5,000
2,000
1,000
410
800
* Taxes are paid in their entirety in the year that the tax obligation is incurred.
t
Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
Construct an income statement for Fincorp for 2018 and 2019. (Enter your answers in thousands of dollars.)
2018
2019
$4,100
1,700
0
520
350
550
150
420
350
450
5,800
2,400…
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