Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Concord Limited reported the following on its income statement: Profit before income taxes $550000 Income tax expense 147000 Profit $403000 An analysis of the

1)

Concord Limited reported the following on its income statement:

Profit before income taxes

$550000

Income tax expense

147000

Profit

$403000

An analysis of the income statement revealed that interest expense was $44000. Concords interest coverage ratio was

9.2 times.

13.5 times.

12.5 times.

10.2 times

2)

Dieter Incorporated has provided you with the following selected information from 2020 and 2021:

2021

2020

Interest expense

$15,500

$10,700

Income tax expense

18,000

22,000

Profit

68,000

60,000

Total assets

523,000

497,000

Total liabilities

285,000

234,000

Which of the following best interprets Dieters debt to total assets ratio analysis?

Debt to total asset ratio has weakened compared to prior year, increasing from 47.1% to 54.5%.

Debt to total asset ratio has weakened compared to prior year, decreasing from 2.1 to 1.8.

Debt to total asset ratio has improved compared to prior year, increasing from 47.1% to 54.5%.

Debt to total asset ratio has improved compared to prior year, decreasing from 2.1 to 1.8.

3)

Fantastic Cleaning Products Ltd. has provided you with the following selected information from 2020 and 2021:

2021

2020

Sales

$785,000

$740,000

Sales returns and allowances

55,200

52,000

Cost of goods sold

358,000

305,000

Profit

86,800

128,000

Using a vertical trend analysis with net sales as a base, which of the following most accurately depicts the information stated above?

Cost of goods sold as a percentage of net sales increased by 5 percentage points.

Profit as a percentage of net sales increased by 6.7 percentage points.

Profit as a percentage of net sales did not change significantly from 2020.

Cost of goods sold as a percentage of net sales remained consistent from 2020.

4)

Raji Upholstery Inc. reported revenue of $250,000 in 2021 and $222,500 in 2020. The horizontal percentage change from 2020 to 2021 is

12.4%.

112.4%.

111.0%.

11.0%.

5)

An intercompany comparative analysis is the process of

comparing an item or financial relationship within a company in the current year with one or more prior years.

comparing an item or financial relationship of one company with historical data compiled by one or more competing companies.

comparing an item or financial relationship of one company with the same item or relationship in one or more competing companies.

comparing an item or financial relationship within a company to the internally prepared master budget in order to highlight variances.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Content Audits And Inventories A Handbook

Authors: Paula Ladenburg Land

1st Edition

1937434389, 978-1937434380

More Books

Students also viewed these Accounting questions

Question

e. What are notable achievements of the group?

Answered: 1 week ago