Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bay Footware Inc comparative Balance Sheet December 31,2022 and 2021 begin{tabular}{|rr|} hline 285,000 & 305,000 hline 25,000 & 30,000 hline 70,000 & 78,000

image text in transcribed
image text in transcribed
Bay Footware Inc comparative Balance Sheet December 31,2022 and 2021 \begin{tabular}{|rr|} \hline 285,000 & 305,000 \\ \hline 25,000 & 30,000 \\ \hline 70,000 & 78,000 \\ \hline 380,000 & 413,000 \\ \hline 775,100 & 725,000 \\ \hline \end{tabular} Liabilities and Stockholders' Equity Liabilities Current Liabilities Accounts Payable Notes Payable Salaries Payable Total Current Liabilities Long-Term Liabilities Bonds Payable Total Long-Term Labilities Total Liabilities \begin{tabular}{|rr|} \hline 35,000 & 36,000 \\ \hline 39,000 & 160,000 \\ \hline 36,000 & 40,000 \\ \hline 110,000 & 236,000 \\ & \\ \hline & \\ \hline 81,000 & 75,000 \\ \hline 81,000 & 75,000 \\ 191,000 & 311,000 \\ \hline \end{tabular} Stockholders's Equity Common stock (s1 par) Retained Earnings Total Stockholders's Equity Totai Labilities and stockholdersi Equity \begin{tabular}{|cc|} \hline 100.000 & 100,000 \\ \hline 484.100 & 314.000 \\ \hline 584.100 & 414.000 \\ \hline & \\ \hline 775.100 & 725.000 \\ \hline & \\ \hline \end{tabular} 6 Prepare the following based on given Comparative Income Statement and Variance Analysis. a. Verticle analysis and Horizontal Analysis of Gross Profit, Total Expenses, Net Income after Income Taxes, Current Asset, Current Liabilities and Total Liabilities of 2021 and 2022. b. Calculate Ratios of the following for both 2022 and 2021 Rate of return on sales Rate of return on total assets Asset Turnover Working Capital Current Ratio Acid-test Ratio Bay Footware inc. Comparative Income Statement Years Ended December 31, 2022 \begin{tabular}{lrr|} \hline Sales & 2022 & 2021 \\ \hline Less Sales returns abd Allowance & 1,650,000 & 1,505,000 \\ \hline Net Sales & 25,000 & 55,500 \\ \hline Cost of Goods Sold & 1,625,000 & 1,449,500 \\ \hline Gross Profit on Sales & 585,000 & 434,850 \\ \hline Selling Expenses & 1,040,000 & 1,014,650 \\ General Expenses & 292,500 & 260,910 \\ Total Expenses & 487,500 & 405,860 \\ \hline Net Income before Income Taxes & 780,000 & 666,770 \\ \hline Income Tax Expense & 260,000 & 347,880 \\ Net Income after Income Taxes & 52,000 & 69,576 \\ \hline & 208,000 & 278,304 \\ \hline \end{tabular}

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

Modern Auditing

Authors: William C. Boynton, Walter G. Kell, Raymond N. Johnson, Dr William Boynton

7th Edition

047118909X, 978-0471189091

More Books

Students also viewed these Accounting questions

Question

The models used to analyse different national cultures.

Answered: 1 week ago

Question

The nature of the issues associated with expatriate employment.

Answered: 1 week ago