Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. Below are the two most recent balance sheets and most recent income statement for Seashell Industries. The company has an effective tax rate of35%.

image text in transcribed

7. Below are the two most recent balance sheets and most recent income statement for Seashell Industries. The company has an effective tax rate of35%. Balance Sheet 2018 2017 Assets: Cash 6,000 1,500 10,000 11,000 $10,000 Accounts Receivable (net) Inventory Long-lived assets Less: Accumulated depreciation Total assets 6,000 8,000 12,000 (4,000) $32,000 (2.000) $26.500 Liabilities and Stockholders' Equity: Accounts payable Deferred revenues 6,000 5,000 1,000 10,000 2,000 Long-tem note payable Less: Discount on note payable Common stock 10,000 (800) 12,000 (1,000) 6,000 Retained eamings Total liabilities and stockholders' equity 3.500 $26,500 4.800 $32,000 Income Statement For the year ended December 31, 2018 Revenues $42,000 Cost of goods sold Depreciation expense Interest expense Bad debt expense Other expense (including income taxes) Net income (24,000) (2,000) (3,000) (2,000) (9,000) 2,000 Calculate the following financial ratios for 2018: 1) Return on assets (ROA) 2) Return on common shareholders' equity (ROCE) 3) Accounts receivable tumover

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

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

Accounting For Inventory

Authors: Steven M. Bragg

1st Edition

1938910222, 9781938910227

More Books

Students also viewed these Accounting questions

Question

Draw the plane given by the equation. x + y + z = 4

Answered: 1 week ago