Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 2AA
1.
To determine
Compute profit margin for Incorporation A and Incorporation G for the two years.
2.
To determine
Identify the company which is more successful on the basis of the profit margin.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Key comparative figures ($ millions) for both Apple and Google follow.
Apple
Google
Key Figure
Current Year
Prior Year
Current Year
Prior Year
Liabilities + Equity
$375,319
$321,686
$197,295
$167,497
Net income
48,351
45,687
12,662
19,478
Revenues
229,234
215,639
110,855
90,272
Required:1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google?2. What is the current-year return on assets for (a) Apple and (b) Google?3. How much are current-year expenses for (a) Apple and (b) Google?4-a. Is the current-year return on assets better than the 10% return of competitors for Apple?4-b. Is the current-year return on assets better than the 10% return of competitors for Google?5. Relying only on return on assets, would we invest in Google or Apple?
QUESTION 26
A company's financial statements states that amounts are reported in thousands of dollars. Its income statement for 2020 reports net income as $7,548.6.
Approximately how much net income did this company earn in 2020?
O a. $7,548.60
O b. $75,486.00
O c. $7,548,600.00
O d. $7,548,600,000.00
U
Question 15
LeGrand Corporation reported the following amounts in its income statement:
Sales revenue
Advertising expense
Interest expense
Salaries expense
Utilities expense
Income tax expense
Cost of goods sold
What was LeGrand's operating income?
440,000
60,000
10.000
55.000
25.000
45.000
180,000
Chapter 3 Solutions
Principles of Financial Accounting.
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - What is the difference between the cash basis and...Ch. 3 - Prob. 2DQCh. 3 - What type of business is most likely to select a...Ch. 3 - What is a prepaid expense and where is it reported...Ch. 3 - What type of assets requires adjusting entries to...
Ch. 3 - What contra account is used when recording and...Ch. 3 - Prob. 7DQCh. 3 - If a company initially records prepaid expenses...Ch. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Samsung Assume Samsung has unearned revenue. What...Ch. 3 - Prob. 12DQCh. 3 - Question: QUICK STUDY Periodic reporting C1 Choose...Ch. 3 - Prob. 2QSCh. 3 - Identifying accounting adjustments Classify the...Ch. 3 - Prob. 4QSCh. 3 - Prepaid (deferred) expenses adjustments For each...Ch. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Accrued expenses adjustments For each separate...Ch. 3 - Prob. 13QSCh. 3 - Accrued revenues adjustments For each separate...Ch. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Preparing an adjusted trial balance P5 Following...Ch. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Prob. 1ECh. 3 - Classifying adjusting entries P1 P2 P3 P4 In the...Ch. 3 - Question: Adjusting and paying accrued wages P3...Ch. 3 - Question: Determining cost flows through accounts...Ch. 3 - Prob. 5ECh. 3 - Preparing adjusting entries P1 P2 P3 Prepare...Ch. 3 - Prob. 7ECh. 3 - Analyzing and preparing adjusting entries P5...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Question: Computing and interpreting profit margin...Ch. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Preparing adjusting entries P1 P2 P3 P4 For each...Ch. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 1BPCh. 3 - Prob. 2BPCh. 3 - Prob. 3BPCh. 3 - Prob. 4BPCh. 3 - Prob. 5BPCh. 3 - Question: SERIAL PROBLEM Business Solutions P1 P2...Ch. 3 - Prob. 1AACh. 3 - Prob. 2AACh. 3 - Prob. 3AACh. 3 - Question: TAKING IT TO THE NET A1 Access EDGAR...
Knowledge Booster
Similar questions
- 1-What will be the net income? a. 72000 b. 56000 c. 16000 d. 338000 Clear my choice Question 43 Not yet answered Marked out of 1.00 Flag question Question text What will be the Gross Profit at the end of the year December 2019 a. OMR 56000 b. OMR 16000 c. OMR 338,000 d. OMR 336,000 2-What is the Gross Margin in terms of Percentage? a. 16.66 b. 16.56 c. Cannot be determined d. 20.66 3-What will be the total operating expense? a. 21500 b. 53200 c. 41200 d. 19700 4-What will be the total Selling and distribution expense? a. 41200 b. 19700 c. 14800 d. 17200arrow_forwardQUESTION 12 Annual data for ABC Corporation appear below, in millions of US dollars: 2016 2017 2018 2019 Sales Revenue 126.1 131.3 144.5 150.4 Cost of Goods Sold 45.3 50.8 54.6 55.3 Operating Income Ending Inventory 18.8 21.1 20.9 23.3 9.6 10.2 10.8 9.6 Ending Accounts Payable 10.2 8.8 9.5 10.2 Calculate ABC's inventory turnover ratio for 2017. Round your answer to 1 decimal place (xx.x).arrow_forwardHow do you calculate the TTM? Particulars 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 TTM Sales ₱ 32,067.00 ₱ 35,422.00 ₱ 70,881.00 ₱ 95,519.00 ₱ 122,128.00 ₱ 165,654.00 ₱ 188,793.00 ₱ 232,834.00 ₱ 263,159.00 ₱ 273,046.00 ₱ 269,693.00 ₱ 294,619.00arrow_forward
- Question 8 Use the Common-Size Income Statement for Company A and Company B to answer this question. Company A Common Size $ Company B $ Common Size % % Revenue $132,110 100.0% 89,597 100.0% Cost of Revenue 87.257 66.0% 60.025 67.0% Gross Profit 44,853 34.0% 29,572 33.0% Selling, general and administrative 24,447 18.5% 18,529 20.7% Depreciation 2.128 1.6% 1.396 1.6% Operating profit 18,278 13.8% 9,647 10.8% Investment income 47 .036% 11 .012% Loss Debt Extinguishment 1057 1.2% Interest Expense 1.347 1.0% 859 1.0% Income from continuing operations 16,978 12.9% 7,742 8.6% Provision (benefit) for income taxes 4.112 3.1% 1,907 2.1% Net income 12,866 9.7% 5,835 6.5% Which of the following reasons explain why Company A has a higher operating profit margin? Company A has higher tax expense relative to sales. O Company A has a higher markup and/or lower inventory costs. Company A has more investment income relative to sales. O Company A has more sales.arrow_forwardKey comparative figures for Apple and Google follow. Apple Google $ millions Current Year Prior Year Current Year Prior Year Total liabilities $241,272 $193,437 $ 44,793 $ 28,461 Total assets 375,319 321,686 197,295 167,497 Required:1. What is the debt ratio for Apple in the current year and for the prior year?2. What is the debt ratio for Google in the current year and for the prior year?3. Which of the two companies has the higher degree of financial leverage in the current year?arrow_forwardProblem 19.17 If projected sales growth is actually 14.70%, Calculate the EFN. (Refer to Exhibits 19.10 and 19.11.) (Round answer to 2 decimal places, e.g. 0.45. Enter negative amount using either a negative sign preceding the number e.g. -0.45 or parentheses e.g. (0.45).) Exhibit 19.10 Empire Enterprises: Pro Forma Income Statement and Balance Sheet ($ millions) Income Statement Net sales $ 120.0 Costs 108.0 Net income $ 12.0 Dividends $ $ 7.2 Additions to retained earnings 4.8 Balance Sheet Assets Liabilities and Stockholders' Equity Change Change Assets $ 60.0 S 10.0 Total debt $ 20.0 $0.0 Equity Total liabilities and stockholder's equity 34.8 4.8 $ 10.0 $ 54.8 $ 5.2 Total assets $ 60.0 $ 4.8 External financing needed (EFN) $ 5.2 The pro forma balance sheet for Empire Enterprises does not balance, and the difference is the amount of EFN. Because the company's board does not wish to issue common stock, the funding will have to take the form of long-term debt.arrow_forward
- pt. 16 i Gross sales Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes Net income $ $ $ $ GAGA $ $ $ $ 2023 19,000 $ 1,000 18,000 $ 12,000 6,000 $ 700 $ 2,200 550 360 LA LA 3,810 $ 2,190 $ 560 1,630 640 990 $ $ 2022 15,000 100 14,900 9,000 5,900 600 2,000 500 300 3,400 2,500 500 2,000 800 1,200 Increase (Decrease) Amount Percentarrow_forwardy Home Net income w.com/ilm/takeAssignment/takeAssignmentMain.do?invo... A Interest expense X CengageNOWv2 | Online teachin x + O 10 Fiscal Year 3 Fiscal Year 2 $146,200 $75,300 3,000 11,200 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) Fiscal Year 3 $3,398,445 1,220,347 Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders' equity is 15.0% for the year ended April 2, Year 3. a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 c. The return on stockholders' equity is use of leverage. d. During fiscal Year 3, East Point's results were compared to the industry average. The return on total assets for East Point was than the industry average. The return on stockholders'…arrow_forwardect Assignment The preliminary 2024 income statement of Alexian Systems, Incorporated, is presented below: ALEXIAN SYSTEMS, INCORPORATED Income Statement. For the Year Ended December 31, 2024 ($ in millions, except earnings per share) Revenues and gains: Sales revenue Interest revenue Other income Total revenues and gains. Expenses: Cost of goods sold Selling and administrative expense Income tax expense Total expenses Net Income Earnings per share $ 435 6 128 569 247 158 41 446 $123 $ 12.30 Saved Help Additional information: 1. Selling and administrative expense includes $28 million in restructuring costs. 2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $8 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $10 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material.…arrow_forward
- May Mahal Nang Iba Company Question: The net income for the year is a. P220,0000 b. P260,000 c. P130,000 d. P180,000arrow_forwardProblem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $ 459,716 $ 352,180 $ 244,400 Cost of goods sold 276,749 223,282 156,416 Gross profit 182,967 128,898 87,984 Selling expenses 65,280 48,601 32,261 Administrative expenses 41,374 30,992 20,285 Total expenses 106,654 79,593 52,546 Income before taxes 76,313 49,305 35,438 Income tax expense 14,194 10,108 7,194 Net income $ 62,119 $ 39,197 $ 28,244 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 58,718 $ 39,300…arrow_forwardQuestion Content Area Hsu Company reported the following on its income statement: Income before income taxes $325,364 Income tax expense 97,609 Net income $227,755 Interest expense was $73,540. Hsu Company's times interest earned ratio (rounded to two decimal places) is a.4.42 times b.3.1 times c.2.1 times d.5.42 timesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Financial & Managerial Accounting
Accounting
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Accounting (Text Only)
Accounting
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,