Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Tia's Tranpolines Inc. Comparative Balance Sheet Information November 30 (millions of 5) 2020 2019 Cash $ 208 $ 596 Accounts receivable (net) 283 320

image text in transcribed
image text in transcribed
image text in transcribed
1 Tia's Tranpolines Inc. Comparative Balance Sheet Information November 30 (millions of 5) 2020 2019 Cash $ 208 $ 596 Accounts receivable (net) 283 320 Plant and equipment (net) 1,560 Accounts payable 63 139 Long-tern notes payable 968 1,288 Preferred shares 168 168 Common shares 648 Retained earnings 93 hts 1,449 2018 $ 621 139 1,856 248 1,448 168 648 104 eBook Pint 548 233 The preferred shares are $0.50, non cumulative 80 million preferred and 320 million common shares were issued and outstanding during each year Tia's Trampolines Inc. Income Statement For Year Ended November 10 (millions of 5) 2020 2019 2018 Net sales $6,080 6,400 46,720 Cost of goods sold 2,784 4.408 4,632 Gross profit $1,296 $1,992 $2,088 Operating expenses Depreciation expense $312 312 312 other expenses 408 1,264 1,460 Total operating expenses 720 1,576 1,772 Profit from operations 55765 416 S316 Interest expense 74 93 103 Income tax expense 163 115 80 Profit $ 339 $ 298 $ 113 Required: Calculate Tia's Trampolines Inc's profitability ratios for 2020. Also identify whether each of Tia's Trampolines Inc's profitability ratios compares favourably or unfavourably to the industry average. (Round the final answer to 2 decimal places. Input all positive values.) 2020 FU bK 8 30% 31.76% 1. Profit margin 2 Gross profit ratio 3 Return on total assets 4 Return on common shareholders' equity 5 Book value per common share 6 Book value per preferred share 7. Earnings per share Industry Average 14 % 18 % 20% 3271% S 8 63 $ 1500 S 1 79 % Analysis Component: Calculate the sales, accounts receivable, cost of goods sold, and accounts payable for the three years 2020, 2019 and 2018 using 2018 as the base year. (Round the final answer to 2 decimal places. Indicate if variance trend is favorable/unfavorable. Input all positive values.) 2020 2019 2018 FU ae % % % Net sales Accounts receivable Cost of goods sold Accounts payable % % % % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio

Authors: Robert A.Weigand

1st edition

978-111863091, 1118630912, 978-1118630914

Students also viewed these Accounting questions

Question

Explain how humanistic therapists use the technique of reflection.

Answered: 1 week ago