Baokang Company Comparative Consolidated Income Statements 20X1 and 20X2 egin{tabular}{|c|c|c|} hline & ( 20 imes 2 ) & ( 20 imes 1 ) \ hline operating income & ( $ 7,669,848 ) & ( $ 6,878,046 ) \ hline Sales returns and discounts & ( (68,412) ) & ( (47,812) ) \ hline Operating income - net & ( $ 7,601,436 ) & ( $ 6,830,234 ) \ hline Operating cost & ( (4,104,912) ) & ( (3,715,746) ) \ hline Operating profit & ( $ 3,496,524 ) & ( $ 3,114,488 ) \ hline multicolumn{3}{|l|}{ Operating expenses } \ hline sales expense & ( $(180,720) ) & ( $(179,252) ) \ hline & ( (155,226) ) & ( (116,276) ) \ hline research and development expenses & ( (749,950) ) & ( (694,288) ) \ hline Total operating expenses & ( $(1,085,896) ) & ( $(989,816) ) \ hline operating profit & ( $ 2,410,628 ) & ( $ 2,124,672 ) \ hline multicolumn{3}{|l|}{ Non-operating income } \ hline interest income & ( $ 81,332 ) & ( $ 99,890 ) \ hline exchange benefits & - & 57,820 \ hline Selling long and short term investment interests & 256,514 & 39,982 \ hline Inventory surplus & - & - \ hline other & 21,360 & 4,356 \ hline Total non-operating income & ( $ 359,206 ) & ( $ 202,048 ) \ hline multicolumn{3}{|l|}{ non-operating expenses } \ hline Long-term investment losses recognized under the equity method & ( $(285,764) ) & ( $(27,532) ) \ hline Inventory loss & ( (17,000) ) & ( (12,000) ) \ hline Interest expense & ( (38,000) ) & ( (36,300) ) \ hline exchange loss & ( (79,750) ) & ( (40,000) ) \ hline other & ( (7,200) ) & ( (15,200) ) \ hline end{tabular}
Esokung Compary 20X1 and 20X2 \begin{tabular}{|c|c|} \hline 202 & 201 \\ \hline$7,669,848 & $6,878,046 \\ \hline(68,412) & (47,812) \\ \hline$7,601,436 & $6,830,234 \\ \hline(4,104,912) & (3,715,746) \\ \hline$3,496,524 & $3,114,488 \\ \hline$(180,720) & $(179,252) \\ \hline(155,226) & (116,276) \\ \hline(749,950) & (694,288) \\ \hline$(1,085,896) & $(989,816) \\ \hline$2,410,628 & $2,124,672 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline$81,332 & $99.890 \\ \hline - & 57,820 \\ \hline 256,514 & 39.982 \\ \hline - & - \\ \hline 21,360 & 4,356 \\ \hline$359,206 & $202,048 \\ \hlineS(285,764) & $(27,532) \\ \hline(17,000) & (12,000) \\ \hline(38,000) & (36,300) \\ \hline(79,750) & (40,000) \\ \hline(7,200) & (15,200) \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total non-operating expenses & $427,714 & $(131,032) \\ \hline pre-tax benefit & $2,342,120 & $2,195,688 \\ \hline Income Tax Benefits (Expenses) & (350,000) & (330,000) \\ \hline Chun Yi & $1,992,120 & $1,865,688 \\ \hline \end{tabular} Try to cairulate and answor the falowing quistions based on the above information (1) The company's return on assets in 202.(3%) (2) The company's long-term capital return rate in 202 assumes that all interest expenses come from long-term liabilites. (3\%) (3) If interest expenses are not considered to calculate the retum on assets, recalculate the ratio and analyze the ratio into net interest rate and asset tumover rate. If according to the survey, the retum on assets of the peers is 20%, and the anset turnover rate is 1.2 , what is the net profit margin of the peers? Please explain whether the company can improve its various ratios. (10\%) (4) Try to calculate the company's return on equity in 202.(3%) (5) Try to integrate the financial leverage ratio and operating income into the analysis of retum on equity, analyze the return rate into three items to explain whether debt operation is beneficial, and compare the company's return on assots and return on equity, so as to Describe the company's operations manner. (10%)(6) Assume that the company has no special shareholders and the weighted average number of ordinary shares outstanding in 202 is 498,347 shares, and the number of outstanding shares at the end of the year was 538.240 shares, and the dividend declared that year was $2.50 per share, then calculate the company's dividend payout rate for 20x2. (3\%) Assume that the company has no special shareholders and the weighted average number of ordinary shares outstanding in 202 is 498,347 shares, and the number of outstanding shares at the end of the year was 538,240 shares, and the dividend declared that year was $2.50 per (8) Assuming that the allowance for bad debts at the end of 202 and 201 is $8,152 and $6,516 respectively, and the allowance for inventory depreciation it \begin{tabular}{|c|c|c|} \hline \multicolumn{2}{|l|}{ cost: } & \multirow[b]{2}{*}{$483,032} \\ \hline houses & $483,032 & \\ \hline House accessories & 152,636 & 147,788 \\ \hline & 263,976 & 254,228 \\ \hline Test equipment & 435,864 & 270,858 \\ \hline & 9,372 & 9,372 \\ \hline boosta matinganey & 62,542 & 45,862 \\ \hline & 9,574 & 7.780 \\ \hline total & $1.416.996 & $1,218,920 \\ \hline Nanitutionesen & (405,514) & (284,996) \\ \hline Connusoninpersent & 5,328 & 7,122 \\ \hline Subtotal & $1,016,810 & $941,046 \\ \hline \multicolumn{3}{|l|}{ Other assets } \\ \hline Deferred tax assets & $208,814 & $141,534 \\ \hline Refundabie deposils & 232,996 & 221,010 \\ \hline Subtotal & $441,810 & $362,544 \\ \hline total assets & $10,245,760 & $7,850,466 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Liabilities and Equily: \\ Current liabilities \end{tabular}} \\ \hline & & \\ \hline \begin{tabular}{c} Notes payable \\ oscounts paynablo \end{tabular} & $180,000 & $14,490 \\ \hline Reinvest persion & - & 656 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline other & 214,728 & 366,880 \\ \hline income tax payable & 45,700 & 13,808 \\ \hline Expenses payable and other liabilities & 212,980 & 207,972 \\ \hline Subtotal & $653,408 & $603,806 \\ \hline \multicolumn{3}{|l|}{ Non-current liabilities } \\ \hline Long term loan & $193.808 & $171,112 \\ \hline Total Liabilities & $847,216 & $774,918 \\ \hline \multicolumn{3}{|l|}{ rights are interossts } \\ \hline share capital & $5,382,400 & $3,680,000 \\ \hline capital reserve & 1,160 & 1,160 \\ \hline \multicolumn{3}{|l|}{ retained earnings } \\ \hline statutery puteic reserve & 694,072 & 503,062 \\ \hline undistributed earnings & 3,303,074 & 2,893,322 \\ \hline Curnuarve conversion adfustiments & 17,838 & (1,996) \\ \hline Total equity & $9,398,544 & $7,075,548 \\ \hline Total liabilities and equity & $10,245,760 & $7,850,466 \\ \hline \end{tabular} Esokung Compary 20X1 and 20X2 \begin{tabular}{|c|c|} \hline 202 & 201 \\ \hline$7,669,848 & $6,878,046 \\ \hline(68,412) & (47,812) \\ \hline$7,601,436 & $6,830,234 \\ \hline(4,104,912) & (3,715,746) \\ \hline$3,496,524 & $3,114,488 \\ \hline$(180,720) & $(179,252) \\ \hline(155,226) & (116,276) \\ \hline(749,950) & (694,288) \\ \hline$(1,085,896) & $(989,816) \\ \hline$2,410,628 & $2,124,672 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline$81,332 & $99.890 \\ \hline - & 57,820 \\ \hline 256,514 & 39.982 \\ \hline - & - \\ \hline 21,360 & 4,356 \\ \hline$359,206 & $202,048 \\ \hlineS(285,764) & $(27,532) \\ \hline(17,000) & (12,000) \\ \hline(38,000) & (36,300) \\ \hline(79,750) & (40,000) \\ \hline(7,200) & (15,200) \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total non-operating expenses & $427,714 & $(131,032) \\ \hline pre-tax benefit & $2,342,120 & $2,195,688 \\ \hline Income Tax Benefits (Expenses) & (350,000) & (330,000) \\ \hline Chun Yi & $1,992,120 & $1,865,688 \\ \hline \end{tabular} Try to cairulate and answor the falowing quistions based on the above information (1) The company's return on assets in 202.(3%) (2) The company's long-term capital return rate in 202 assumes that all interest expenses come from long-term liabilites. (3\%) (3) If interest expenses are not considered to calculate the retum on assets, recalculate the ratio and analyze the ratio into net interest rate and asset tumover rate. If according to the survey, the retum on assets of the peers is 20%, and the anset turnover rate is 1.2 , what is the net profit margin of the peers? Please explain whether the company can improve its various ratios. (10\%) (4) Try to calculate the company's return on equity in 202.(3%) (5) Try to integrate the financial leverage ratio and operating income into the analysis of retum on equity, analyze the return rate into three items to explain whether debt operation is beneficial, and compare the company's return on assots and return on equity, so as to Describe the company's operations manner. (10%)(6) Assume that the company has no special shareholders and the weighted average number of ordinary shares outstanding in 202 is 498,347 shares, and the number of outstanding shares at the end of the year was 538.240 shares, and the dividend declared that year was $2.50 per share, then calculate the company's dividend payout rate for 20x2. (3\%) Assume that the company has no special shareholders and the weighted average number of ordinary shares outstanding in 202 is 498,347 shares, and the number of outstanding shares at the end of the year was 538,240 shares, and the dividend declared that year was $2.50 per (8) Assuming that the allowance for bad debts at the end of 202 and 201 is $8,152 and $6,516 respectively, and the allowance for inventory depreciation it \begin{tabular}{|c|c|c|} \hline \multicolumn{2}{|l|}{ cost: } & \multirow[b]{2}{*}{$483,032} \\ \hline houses & $483,032 & \\ \hline House accessories & 152,636 & 147,788 \\ \hline & 263,976 & 254,228 \\ \hline Test equipment & 435,864 & 270,858 \\ \hline & 9,372 & 9,372 \\ \hline boosta matinganey & 62,542 & 45,862 \\ \hline & 9,574 & 7.780 \\ \hline total & $1.416.996 & $1,218,920 \\ \hline Nanitutionesen & (405,514) & (284,996) \\ \hline Connusoninpersent & 5,328 & 7,122 \\ \hline Subtotal & $1,016,810 & $941,046 \\ \hline \multicolumn{3}{|l|}{ Other assets } \\ \hline Deferred tax assets & $208,814 & $141,534 \\ \hline Refundabie deposils & 232,996 & 221,010 \\ \hline Subtotal & $441,810 & $362,544 \\ \hline total assets & $10,245,760 & $7,850,466 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Liabilities and Equily: \\ Current liabilities \end{tabular}} \\ \hline & & \\ \hline \begin{tabular}{c} Notes payable \\ oscounts paynablo \end{tabular} & $180,000 & $14,490 \\ \hline Reinvest persion & - & 656 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline other & 214,728 & 366,880 \\ \hline income tax payable & 45,700 & 13,808 \\ \hline Expenses payable and other liabilities & 212,980 & 207,972 \\ \hline Subtotal & $653,408 & $603,806 \\ \hline \multicolumn{3}{|l|}{ Non-current liabilities } \\ \hline Long term loan & $193.808 & $171,112 \\ \hline Total Liabilities & $847,216 & $774,918 \\ \hline \multicolumn{3}{|l|}{ rights are interossts } \\ \hline share capital & $5,382,400 & $3,680,000 \\ \hline capital reserve & 1,160 & 1,160 \\ \hline \multicolumn{3}{|l|}{ retained earnings } \\ \hline statutery puteic reserve & 694,072 & 503,062 \\ \hline undistributed earnings & 3,303,074 & 2,893,322 \\ \hline Curnuarve conversion adfustiments & 17,838 & (1,996) \\ \hline Total equity & $9,398,544 & $7,075,548 \\ \hline Total liabilities and equity & $10,245,760 & $7,850,466 \\ \hline \end{tabular}
