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Tju [1.3M]
3 years ago
7

omparative Income Statement For the Years Ended December 31, 20Y6 and 20Y5 1 20Y6 20Y5 Amount Increase (Decrease) Percentage Inc

rease (Decrease) 2 Sales $7,287,000.00 3 Cost of goods sold 3,444,000.00 4 Gross profit $3,843,000.00 5 Selling expenses $1,457,600.00 6 Administrative expenses 1,242,000.00 1,106,000.00 7 Total operating expenses $2,563,600.00 8 Income from operations $1,279,400.00 9 Interest expense 120,600.00 10 Income before income tax $1,158,800.00 11 Income tax expense 181,980.00 12 Net income $976,820.00
Business
1 answer:
ElenaW [278]3 years ago
4 0

Answer:

The question is incomplete. Here is the complete question:

 

Liquidity and Solvency Measures Computations

Current ratio $3,093,000 ÷ $840,000

Working capital $3,093,000 – $840,000

Accounts receivable turnover $8,280,000 ÷ [($714,000 + $740,000) ÷ 2]

Ratio of fixed assets to long-term liabilities $2,690,000 ÷ $1,690,000

Inventory turnover $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2]

Number of days' sales in receivables [($714,000 + $740,000) ÷ 2] ÷ ($8,280,000 ÷ 365)

Number of days' sales in inventory [($1,072,000 + $1,100,000) ÷ 2] ÷ ($4,100,000 ÷ 365)

Times interest earned ($989,400 + $127,000) ÷ $127,000

Ratio of liabilities to stockholders' equity $2,530,000 ÷ $4,077,000

Quick ratio $1,866,000 ÷ $840,000

Profitability Measures Computations

Asset turnover $8,280,000 ÷ [($5,783,000 + $5,593,000) ÷ 2]

Return on total assets ($801,420 + $127,000) ÷ [($6,607,000 + $6,417,000) ÷ 2]

Return on stockholders’ equity $801,420 ÷ [($4,077,000 + $3,873,150) ÷ 2]

Return on common stockholders’ equity ($801,420 – $65,000) ÷ [($3,589,500 + $3,445,920) ÷ 2]

Earnings per share on common stock ($801,420 – $65,000) ÷ 250,000 shares

Price-earnings ratio $35 ÷ $3.05

Dividends per share $175,000 ÷ 250,000 shares

Dividend yield $0.70 ÷ $35

Two of the computations use shares.

Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures panel and on the Profitability Measures panel. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If < 5, round down and if ≥ 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%.

Comparative Income Statement    

For the Years Ended December 31, 20Y6 and 20Y5

 

1   20Y6 20Y5 Amount Increase (Decrease) Percentage Increase (Decrease)

2 Sales   $7,287,000.00    

3 Cost of goods sold   3,444,000.00    

4 Gross profit   $3,843,000.00    

5 Selling expenses   $1,457,600.00    

6 Administrative expenses 1,242,000.00 1,106,000.00    

7 Total operating expenses   $2,563,600.00    

8 Income from operations   $1,279,400.00    

9 Interest expense   120,600.00    

10 Income before income tax   $1,158,800.00    

11 Income tax expense   181,980.00    

12 Net income   $976,820.00    

Explanation:

Items Computations value

1. Sales: Sales are taken from number of days' sales in receivables or accounts  

receivable turnover ratio, with assuming that all sales are credit sales 8,280,000.00

2. Cost of goods sold:  Cost of goods sold is taken from number of days' sales in inventory or Inventory turnover 4,100,000.00

3. Gross profit:  Gross profit = Sales - Cost of goods sold 4,180,000.00

4. Selling expenses:  Selling expenses = Total operating expenses - Cost of goods sold - Administrative expenses 1,821,600.00

5. Administrative expenses:  available 1,242,000.00

6. Total operating expenses: Total operating expenses = Sales - Income from operations 7163600

7. Income from operations: Income from operations (or is also known EBIT) = Income before income tax + Interest expense 1,116,400.00

8. Interest expense: Interest expense is taken from Times interest earned and Return on total assets 127,000.00

9. Income before income tax: Income before income tax is taken from Times interest earned and Interest expense being specified already 989,400.00

10. Income tax expense: Income tax expense = Income before income tax - Net income 187,980.00

11. Net income: Net income is taken from Return on total assets and Return on common stockholders’ equity 801,420.00

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Bramble Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.
puteri [66]

Answer:

Bramble Resort

Adjusting Journal Entries on August 31:

1. Debit Insurance Expense $2,175

Credit Prepaid Insurance $2,175

To record insurance expense for 3 months.

2. Debit Supplies Expense $6,339

Credit Supplies $6,339

To record supplies expense for the period.

3. Debit Depreciation Expense - Building $1,152

Credit Accumulated Depreciation - Building $1,152

To record depreciation expense for the period.

Debit Depreciation Expense - Equipment $540

Credit Accumulated Depreciation - Equipment $540

To record depreciation expense for the period.

4. Debit Unearned Rent Revenue $3,666

Credit Rent Revenue $3,666

To record rent revenue earned.

5. Debit Salaries Expense $346

Credit Salaries Payable $346

To accrue unpaid salaries.

6. Debit Accounts Receivable $837

Credit Rent Revenue $837

To record rentals due from tenants.

7. Debit Mortgage Interest Expense $1,360

Credit Mortgage Interest Payable $1,360

To record mortgage interest expense for the period.

Explanation:

a) Data and Calculations:

BRAMBLE RESORT TRIAL BALANCE AUGUST 31, 2020

                                                            Debit        Credit

Cash                                                 $23,800

Prepaid Insurance                                8,700

Supplies                                                6,800

Land                                                   28,000

Buildings                                           128,000

Equipment                                         24,000

Accounts Payable                                              $8,700

Unearned Rent Revenue                                    8,800

Mortgage Payable                                             68,000

Common Stock                                                103,200

Retained Earnings                                              9,000

Dividends                                           5,000

Rent Revenue                                                   84,200

Salaries and Wages Expense         44,800

Utilities Expenses                              9,200

Maintenance and Repairs Expense 3,600

                                                    $281,900 $281,900

b) Insurance Expense = $8,700 * 3/12 = $2,175

c) Supplies Expense = $6,339 ($6,800 - 461)

d) Depreciation Expense on Buildings = $1,152 ($128,000 - 12,800) * 4%) * 3/12

e) Depreciation Expense on Buildings = $540 ($24,000 -2,400) * 10%) * 3/12

f) Interest on Mortgage = $1,360 (68,000 * 8%) * 3/12

3 0
3 years ago
The accountant for Huckleberry Company is preparing the company's statement of cash flows for the fiscal year just ended. The fo
o-na [289]

Answer:

The ending balance for retained earnings is $197,000

Explanation:

Calculation of available retained earnings of the company

Available retained earnings = Beginning retained earnings + Net income

= $ 151,000 + $92,000

= $ 243,000

Thus, the available retained earnings is $243,000.

Calculation of ending balance for retained earnings.

Ending balance for retained earnings = Available retained earnings balance - Dividend paid

= $ 243,000 - $46,000

= $ 197,000

Thus, the ending balance for retained earnings is $197,000.

5 0
3 years ago
Which two factors affect the amount of thermal energy an object has?
alina1380 [7]

Answer:

A, maybe b or d

Explanation:

A because thermal energy is caused by the friction between particles so A is true. B as if you decrease space between particles then they will collide more increasing friction and therefore thermal energy and exactly the same the opposite way round. With D. If you increase the amount of particles then there are more to collide with each other and less space however this one is tricky as it also depends on whether the space increases or not. I would say A and B, they are more safe but C is also maybe true but more risky. C definitely not as the particles movement direction does not affect thermal energy. Hope this helps. Please let me know if this was correct.

3 0
2 years ago
Riverside Fertilizer Co. owns the following assets at the balance sheet date: Cash in the bank—savings account $ 8,000 Cash on h
Vlada [557]

Answer:

The correct answer is $21,100.

Explanation:

According to the scenario, computation of the given data are as follows:

We can calculate the reported cash amount by using following formula:

Reported cash amount = Cash in bank + Cash on hand + Checking Account balance

Where,Cash in bank - savings account = $8,000

Cash on hand = $1,100

Checking Account balance = $12,000

So, Reported cash amount = $8,000 + $1,100 + $12,000

Reported cash amount = $21,100

4 0
3 years ago
Solivan Corp. incurred the following costs during the current year:
liraira [26]

Answer:

c. $405,000

Explanation:

<u>Calculation of R$D Expenses to be report in Income statement</u>

Construction of pre-production prototypes    $180,000

Testing in search of process alternatives       $110,000

Design of tools, jigs, molds, and dies              $115,000

involving new technology

Total R&D Expenses                                         $405,000

Note: Engineering follow-through in an early phase of commercial production & Seasonal or other periodic changes to existing products  are excluded from calculation of Research and Development Expenses.

3 0
3 years ago
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