Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Chapter 15, Problem 52E
Juroe Company provided the following income statement for last year:
Juroe’s balance sheet as of December 31 last year showed total liabilities of $10,250,000, total equity of $6,150,000, and total assets of $16,400,000.
Refer to the information for Juroe Company on the previous page. Also, assume that Juroe’s total assets at the beginning of last year equaled $17,350,000 and that the tax rate applicable to Juroe is 40%.
Required:
Note: Round answers to two decimal places.
- 1. Calculate the average total assets.
- 2. Calculate the return on assets.
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Lydex Company’s financial statements for the last two years are as follows:
Lydex Company
Comparative Balance Sheet
This Year
Last Year
Assets
Current assets:
Cash
$ 1,020,000
$ 1,260,000
Marketable securities
0
300,000
Accounts receivable, net
2,940,000
2,040,000
Inventory
3,660,000
2,100,000
Prepaid expenses
270,000
210,000
Total current assets
7,890,000
5,910,000
Plant and equipment, net
9,640,000
9,110,000
Total assets
$ 17,530,000
$ 15,020,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
$ 4,070,000
$ 3,100,000
Note payable, 10%
3,700,000
3,100,000
Total liabilities
7,770,000
6,200,000
Stockholders' equity:
Common stock, $75 par value
7,500,000
7,500,000
Retained earnings
2,260,000
1,320,000
Total stockholders' equity
9,760,000
8,820,000
Total liabilities and stockholders' equity
$ 17,530,000
$ 15,020,000
Lydex…
The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
Please see the attachment for details:
Assuming that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following: (a) ratio of fixed assets to long-term liabilities, (b) ratio of liabilities to stockholders’ equity, (c) asset turnover, (d) return on total assets, (e) return on stockholders’ equity, and (f) return on common stockholders’ equity. Round ratios and percentages to one decimal place as appropriate.
Footfall Manufacturing Ltd. reports the following financial information at the end of the current year:
Net Sales $100,000
Debtor’s turnover ratio (based on net sales) 2
Inventory turnover ratio 1.25
Fixed assets turnover ratio 0.8
Debt to assets ratio 0.6
Net profit margin 5%
Gross profit margin 25%
Return on investment 2%
Use the given information to fill out the templates for income statement and balance sheet given below:
Income Statement of Footfall Manufacturinf Ltd. for the year ending December 31, 20XX (in $)
Sales 100,000
Cost of goods sold
Gross profit
Other expenses
Earnings before tax
Tax @50%
Earnings after tax
Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in $)
Liabilities Assets
Equity Net fixed assetsLong term debt 50,000 InventoryShort term debt Debtors…
Chapter 15 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
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Ch. 15 - Explain why an investor would be interested in a...Ch. 15 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - When a company participates in a stock buyback...Ch. 15 - Explain the significance of the inventory turnover...Ch. 15 - In a JIT manufacturing environment, the current...Ch. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Fractions or percentages computed by dividing one...Ch. 15 - Prob. 4MCQCh. 15 - Pedee Companys inventory turnover in days is 80...Ch. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQCh. 15 - A small pizza restaurant, founded and owned by the...Ch. 15 - Prob. 10MCQCh. 15 - Prob. 11BEACh. 15 - Scherer Company provided the following income...Ch. 15 - Chen Company has current assets equal to...Ch. 15 - Last year, Nikkola Company had net sales of...Ch. 15 - Last year, Nikkola Company had net sales of...Ch. 15 - Paxton Company provided the following income...Ch. 15 - Ernst Companys balance sheet shows total...Ch. 15 - Prob. 18BEACh. 15 - Prob. 19BEACh. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - Jasmine Company provided the following income...Ch. 15 - Jasmine Company provided the following income...Ch. 15 - LoLo Lemon Company has current assets equal to...Ch. 15 - Last year, Tobys Hats had net sales of 45,000,000...Ch. 15 - Last year, Tobys Hats had net sales of 45,000,000...Ch. 15 - Alessandra Makeup Manufactures provided the...Ch. 15 - Klynveld Companys balance sheet shows total...Ch. 15 - Prob. 31BEBCh. 15 - Prob. 32BEBCh. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - Sundahl Companys income statements for the past 2...Ch. 15 - Sundahl Companys income statements for the past 2...Ch. 15 - Cuneo Companys income statements for the last 3...Ch. 15 - Cuneo Companys income statements for the last 3...Ch. 15 - Prob. 41ECh. 15 - Upton Company has current assets equal to...Ch. 15 - Montalcino Company had net sales of 54,000,000....Ch. 15 - Whalen Company had net sales of 125,500,250,000....Ch. 15 - Prob. 45ECh. 15 - Prob. 46ECh. 15 - Bryce Company manufactures pet supplies. However,...Ch. 15 - Prob. 48ECh. 15 - Prob. 49ECh. 15 - Juroe Company provided the following income...Ch. 15 - Juroe Company provided the following income...Ch. 15 - Juroe Company provided the following income...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - The following selected information is taken from...Ch. 15 - Grammatico Company has just completed its third...Ch. 15 - The following information has been gathered for...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Prob. 60PCh. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Albion Inc. provided the following information for...Ch. 15 - Prob. 65PCh. 15 - Prob. 66PCh. 15 - Prob. 67C
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