Problem 19-4 Per-Share Ratios (LO3, CFA6)You are given the following information for Smashville, Incorporated.Cost of goods sold:Investment income:Net sales:Operating expense:Interest expense:Dividends:Tax rate:Current liabilities:Cash:Long-term debt:$ 200,000$ 2,700$ 333,000$ 47,000$ 7,400$ 16,00021%$ 26,000$ 21,000$ 21,000Other assets:$ 43,000$ 159,000Other liabilities:$ 5,000Fixed assets:Investments:Operating assets:$ 47,000$ 39,000During the year, Smashville, Incorporated, had 20,000 shares of stock outstanding and depreciation expense of $15,000. Calculate thebook value per share, earnings per share, and cash flow per share.Note: Do not round intermediate calculations. Round your answers to 2 decimal places.Book value per shareEarnings per shareCash flow per share$12.85

Step 1: Compute the Book value of Equity (Total assets - Total liabilities) Assets Cash…

Answered: Problem 19-4 Per-Share Ratios (LO3,…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT

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You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: Gross margin Operating margin Return on assets Return on equity $174,000 $ 1,400 $379,000 $ 86,000 $ 7,400 8,000 $ % % % % 40% $ 21,000 $ 21,000 $ 46,000 $ 38,000 $130,000 Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) $ 3,000 $ 34,000 $ 64,000
What advice would you give to Juirgen PROBLEM 17-19 Incomplete Statements; Analysis of Ratios [LO2, LO3, L04] Incomplete financial statements for Tanner Company are given below: Tanner Company Income Statement For the Year Ended December 31 Revenue. $2,700,000 Cost of goods sold.. Gross margin. Selling and administrative expenses . . ? Net operating income Interest expense 45,000 Net income before taxes ? Income taxes, 40%. ? Net income 2$ ? Scanned by CamScanı Financial Staterment Analysis 923 Tanner Company Balance Sheet. December 31 Non-current Assets: Plant and equipment, net Current assets: Accounts receivable, net . . Inventory.. Cash and cash equivalents. Total current assets $ ? Total assets $ ? Equity: Common stock, $2.50 par value Retained earnings Total equity . . .. Bonds payable, 10% Current liabilities ? $250,000 Total liabilities. ? Total equity and liabilities $ ? The following additional information is available about the company: Selected financial ratios computed…
Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, [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 2021 Sales: Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets 2020 $436,580 $ 334,456 262,821 173,759 61,994 39,292 Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 212,045 122,411 46, 155 101,286 72,473 13,480 $ 58,993 $ 37,225 29,432 75,587 46,824 9,599 2021 $ 54,789 0 100, 200 $154,989 $ 22,628 72,000 9,000 51,361 2019 $ 232,100 148,544 83,556 30,637 19,264 49,901 33,655 6,832 $ 26,823 2020 $36,670 900 91,178…
Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 200,000 $ 2,700 $333,000 $ 47,000 $ 7,400 $ 16,000 Price-book ratio Price-earnings ratio Price-cash flow ratio 21% $ 26,000 $ 21,000 $ 21,000 $ 43,000 $ 159,000 $ 5,000 $ 47,000 $ 39,000 During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $19,000. At the end of the year, Smashville stock sold for $56 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. 3.70
Using the financial data for Key Wahl Industries Sales Net Profit After Tax Total Assets Total Liabilities O.50 02 O.75 $4,500,000 What is the debt ratio? O.075 $337,5000 $6,750,000 $ 3,375,000
QUESTION 7 Р18.3А P18.ЗА (LO 3) Jergan Corporation are presented here. Perform ratio analysis, and discuss changes in financial position and operating results. Jergan Corporation Condensed balance sheet and income statement data for Balance Sheets December 31 2020 2019 2018 Cash $ 30,000 $ 20,000 $ 18,000 Accounts receivable (net) 50,000 45,000 48,000 Other current assets 90,000 95,000 64,000 Investments 55,000 70,000 45,000 Plant and equipment (net) 500,000 370,000 358,000 $725,000 $600,000 $533,000 Current liabilities $ 85,000 $ 80,000 $ 70,000 Long-term debt Common stock, $10 par 145,000 85,000 50,000 320,000 310,000 300,000 Retained earnings 175,000 125,000 113,000 $725,000 $600,000 $533,000 Jergan Corporation Income Statements For the Years Ended December 31 2020 2019 Sales revenue $740,000 $600,000 Less: Sales returns and allowances 40,000 30,000 Net sales 700,000 570,000 Cost of goods sold Gross profit 425,000 350,000 275,000 220,000 Operating expenses (including income taxes)…
QUESTION 8 P18-5A P14.5A (LO 3) are presented here (in millions). Compute selected ratios, and compare liquidity, profitability, and solvency for two сотрanies. Suppose selected financial data of Target and Wal-Mart for 2020 Wal-Mart Target Corporation Stores, Inc. Income Statement Data for Year Net sales $65,357 $408,214 Cost of goods sold 45,583 304,657 Selling and administrative expenses 15,101 79,607 L Wal-Mart Target Corporation Stores, Inc. Interest expense 707 2,065 Other income (expense) (94) (411) Income tax eхрense 1,384 7,139 $ 2,488 Balance Sheet Data (End of Year) Net income $ 14,335 Current assets $18,424 $ 48,331 Noncurrent assets 26,109 122,375 Total assets $44,533 $170,706 Current liabilities $11,327 $ 55,561 Long-term debt Total stockholders' equity 17,859 44,089 15,347 71,056 Total liabilities and stockholders' equity $44,533 $170,706 Beginning-of-Year Balances Total assets $44,106 $163,429 Total stockholders' equity 13,712 65,682 Current liabilities 10,512 55,390…
Problem 13 (Statement of Financial Position Analysis) Complete the statement of financial position and sales information using the following financial data: : 50% : 1.8 x : 1.5 x : 36.5 days (calculation is based on a 365- day year) Debt-to-assets ratio Current ratio Total assets turnover Day sales outstanding Gross profit margin on sales : (Sales – Cost of goods sold) / Sales = 25% Inventory turnover ratio : 5x 5 х Statement of Financial Position Liabilities and Owners’ equity Accounts payable Long-term debt Common stock Retained earnings Assets Cash Accounts receivable Inventories Fixed assets P60,000 97,5000 Total liabilities and owners’ equity Cost of goods sold Total assets P300,000 Sales
Solvency and Profitability Trend Analysis Crosby Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $5,571,720 $3,714,480 $2,772,000 $1,848,000 $1,400,000 Interest expense 1,052,060 891,576 768,600 610,000 500,000 Income tax expense 1,225,572 845,222 640,320 441,600 320,000 Total assets (ending balance) 29,378,491 22,598,839 17,120,333 12,588,480 10,152,000 Total stockholders’ equity (ending balance) 18,706,200 13,134,480 9,420,000 6,648,000 4,800,000 Average total assets 25,988,665 19,859,586 14,854,406 11,370,240 8,676,000 Average total stockholders' equity 15,920,340 11,277,240 8,034,000 5,724,000 4,100,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4–20Y8…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…
Problem 13-2A (Static) 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 2021 2020 2019 Sales $ 555,000 $ 340,000 $ 278,000 Cost of goods sold 283,500 212,500 153,900 Gross profit 271,500 127,500 124,100 Selling expenses 102,900 46,920 50,800 Administrative expenses 50,668 29,920 22,800 Total expenses 153,568 76,840 73,600 Income before taxes 117,932 50,660 50,500 Income tax expense 40,800 10,370 15,670 Net income $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets Current assets $ 52,390 $ 37,924 $ 51,748 Long-term investments 0 500 3,950 Plant assets, net 100,000 96,000 60,000 Total assets $ 152,390 $ 134,424 $ 115,698 Liabilities…

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