FINANCIAL ACCOUNTING>IC<
15th Edition
ISBN: 9781119344988
Author: Kimmel
Publisher: WILEY C
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Chapter 9, Problem 9.2EYCT
(a) (1)
To determine
Annual Report: It is a comprehensive financial report that shows all the business activities that takes place throughout the previous financial year. Its purpose is to provide the complete financial information of a company’s financial activities to its users in order to help them analyze, and take well informed decisions.
Financial Ratios: Financial ratios are the metrics used to evaluate the overall financial performance of a company during a specific period of time.
To compute: Return on assets
(a) (2)
To determine
To compute: Profit margin ratio
(a) (3)
To determine
To compute: assets turnover ratio
(b)
To determine
To conclude: on the management of the plant assets from the findings.
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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.
Lansing Company’s 2018 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2017 and 2018, follow.
LANSING COMPANYIncome StatementFor Year Ended December 31, 2018
Sales revenue
$
100,200
Expenses
Cost of goods sold
43,000
Depreciation expense
12,500
Salaries expense
19,000
Rent expense
9,100
Insurance expense
3,900
Interest expense
3,700
Utilities expense
2,900
Net income
$
6,100
LANSING COMPANYSelected Balance Sheet Accounts
At December 31
2018
2017
Accounts receivable
$
5,700
$
6,000
Inventory
2,080
1,590
Accounts payable
4,500
4,800
Salaries payable
900
710
Utilities payable
240
170
Prepaid insurance
270
300
Prepaid rent
240
190
Required:Prepare the cash flows from operating activities section only of the company’s 2018 statement of cash flows using the direct method. (Amounts to be…
Lily Company's income statement contained the following condensed information.
LILY COMPANY
Income Statement
For the Year Ended December 31, 2022
Service revenue
Operating expenses, excluding depreciation
Depreciation expense
Loss on disposal of plant assets
Income before income taxes
Income tax expense
Net income
Accounts receivable
Accounts payable
Income taxes payable
2022
2021
$75,500 $61,000
28,300
Lily's balance sheets contained the comparative data at December 31, shown below.
41.000
For Income Taxes
12,200
For Operating Expenses
Cash Flows from Operating Activities
Cash Receipts from Customers
Less V cash payments:
$624,200
6,700
Net Cash Provided by Operating Activities
55,500
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow
with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).)
25,000
$969,000
$
704,700
264,300
39,700
$224,600
LILY…
Chapter 9 Solutions
FINANCIAL ACCOUNTING>IC<
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - In the fourth year of an assets 5-year useful...
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - Prob. 19QCh. 9 - Prob. 20QCh. 9 - Prob. 21QCh. 9 - Prob. 22QCh. 9 - Give an example of an industry that would be...Ch. 9 - Prob. 24QCh. 9 - Prob. 25QCh. 9 - Prob. 26QCh. 9 - Prob. 27QCh. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Prob. 9.6BECh. 9 - Prob. 9.7BECh. 9 - Prob. 9.8BECh. 9 - Prob. 9.9BECh. 9 - Prob. 9.10BECh. 9 - Prob. 9.11BECh. 9 - Prob. 9.12BECh. 9 - Prob. 9.13BECh. 9 - Prob. 9.14BECh. 9 - Prob. 9.1DIECh. 9 - Prob. 9.2ADIECh. 9 - Prob. 9.2BDIECh. 9 - Prob. 9.3DIECh. 9 - Match the statement with the term most directly...Ch. 9 - Prob. 9.5DIECh. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.1APCh. 9 - Prob. 9.2APCh. 9 - Prob. 9.3APCh. 9 - Prob. 9.4APCh. 9 - Prob. 9.5APCh. 9 - Prob. 9.6APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.8APCh. 9 - Prob. 9.9APCh. 9 - Prob. 9.1CACRCh. 9 - Prob. 9.2CACRCh. 9 - Prob. 9.1EYCTCh. 9 - Prob. 9.2EYCTCh. 9 - Prob. 9.3EYCTCh. 9 - Prob. 9.4EYCTCh. 9 - Prob. 9.6EYCTCh. 9 - Prob. 9.7EYCTCh. 9 - Prob. 9.8EYCTCh. 9 - Prob. 9.9EYCTCh. 9 - Prob. 9.10EYCTCh. 9 - CONSIDERING PEOPLE, PLANET, AND PROFIT The March...Ch. 9 - Prob. 9.1IFRSCh. 9 - Prob. 9.2IFRSCh. 9 - Prob. 9.3IFRSCh. 9 - Prob. 9.4IFRS
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