The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earnings! Year 2 Year 1 $309,140 $260,000 241,500 202,000 67,340 58,000 46,470 41,400 20,870 16,600 9,680 7,500 $ 11,190 $9,100 $ 3,960 $ 7,000 12,610 36,810 52,430 $105,810 15,000 32,000 44,000 $ 98,000 $ 12,850 $ 14,900 40,070 36,000 30,000 30,000 22,090 17,900 $105,810 $ 90,000 "One-third was credit sales. +During Year 2. cash dividends amounting to $7,000 were declared and paid. 1. Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, i.e., 0.1243 should be entered as 12.43.): Increase (Decrease) Year 2 over Year 1 Amount Percentage Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net)) Current liabilities Long-term debt Common shares Retained earnings 0 0 $ 0 $ 0 2-a. By what amount did working capital change? Change in working capital Saved 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Percentage change % 2-c. What was the amount of cash collections from customers in year 2? Amount of cash inflow 2-d. What was the change for the gross profit margin ratio? (Round intermediate calculations and final answer to 1 decimal place.) Percentage change The comparative financial statements prepared at December 31, Year 2, for Goldfish Company showed the following summarized data: Statement of Earnings Sales revenue Cost of sales Gross profit Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Long-term debt (interest rate: 10%) Common shares (6,000 shares) Retained earnings! Year 2 Year 1 $309,140 $260,000 241,500 202,000 67,340 58,000 46,470 41,400 20,870 16,600 9,680 7,500 $ 11,190 $9,100 $ 3,960 $ 7,000 12,610 36,810 52,430 $105,810 15,000 32,000 44,000 $ 98,000 $ 12,850 $ 14,900 40,070 36,000 30,000 30,000 22,090 17,900 $105,810 $ 90,000 "One-third was credit sales. +During Year 2. cash dividends amounting to $7,000 were declared and paid. 1. Complete the following columns for each item in the comparative financial statements (Negative answers should be indicated by a minus sign. Round percentage answers to 2 decimal places, i.e., 0.1243 should be entered as 12.43.): Increase (Decrease) Year 2 over Year 1 Amount Percentage Statement of earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net)) Current liabilities Long-term debt Common shares Retained earnings 0 0 $ 0 $ 0 2-a. By what amount did working capital change? Change in working capital Saved 2-b. What was the percentage change in the income tax rate? (Round intermediate calculations and final answer to 2 decimal places.) Percentage change % 2-c. What was the amount of cash collections from customers in year 2? Amount of cash inflow 2-d. What was the change for the gross profit margin ratio? (Round intermediate calculations and final answer to 1 decimal place.) Percentage change
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Use this template to complete the new quality plan for US Corp ( USCO ) . Modify the template as needed to complete the exercise. Some information is provided to give you a head start. These pre -...
-
Remaining Time: 16 minutes, 13 seconds. * Question Completion Status: CY Moving to the next question prevents changes to this answer. Question 8 Question 8 of 22 1 points Save Answer This is a...
-
Frames Ltd.produces 3 types of memory sticks (A, B, and C) in 3 factories (F1, F2, F3). The quantities produced per month are in the following table: Factory 1 (F1) Factory 2 (F2) Factory 3 (F3)...
-
1. If the nominal policy interest rate is 5% and the expected rate of inflation is 3%, what is the value for the vertical intercept of the LM curve? 2. If the expected rate of inflation were to...
-
Refer to the preceding problem. Determine which of the four cases results in a capital loss carry forward for Mr. and Mrs. Revel. What is the amount and character of each carry forward? a. On May 8,...
-
How does IFRS differ from current U.S. GAAP in accounting for other-than temporary impairments?
-
Refer to Krispy Kremes financial statements in Appendix A to answer the following. Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form...
-
Trowbridge Manufacturing produces cases for personal computers and other electronic equipment. The quality control inspector for this company believes that a particular process is out of control....
-
Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 14-1, 14-3, 14-4 The comparative balance sheets and an income statement for Zachary...
-
Chuck, a single taxpayer, earns $75,000 in taxable income and$10,000 in interest from an investment in City of Heflin bonds.(Use the U.S tax rate schedule.)Required:How much federal tax will he o 2...
-
When a fraud suspect is accused of a crime, there are typically three crimes one is charged with: Wire Fraud Mail Fraud Violation of the RICO Act Submit a real-world example of an individual or group...
-
8.0 Demonstrate mastery of lesson content by developing your personalized negotiation strategy in a practical setting by applying an intervention process to a conflict scenario.
-
What is the difference between root source of the problem and R oot source of the problem? Also What is a symptom and a root cause?
-
How does organizational culture affect capability and performance? For example, an active, participative culture is essential for encouraging organizational learning. What do you think about the...
-
One of the critical articles in collective agreements deals with management rights. The employer retains all rights not curbed, abridged, or otherwise limited by a collective agreement. In other...
-
(i dont need the steps to get the IRR, I need the FINAL answer, solve for IRR) Given the following information, 1 . Assuming a sales price of $1,10 0,000. Finally, calculate the after tax IRR for the...
-
Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...
-
The April 17, 2001, issue of the Wall Street Journal includes an article by James Bandler and Mark Maremont entitled "How Xerox's Plan to Reduce Taxes While Boosting Earnings Backfired." Instructions...
-
Ann Osborne recently graduated from college with a degree in landscape architecture. Her father runs a tree, shrub, and perennial-flower uursery, and her brother has a business delivering lopsoil,...
-
Net income is $132,000. During the year,counts payable increased $10,000, inventory decreased $6,000, and accounts receivable in- creased $12,000. Under the indirect method, net cash provided by...
Study smarter with the SolutionInn App