Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

below. The Statement of Financial Position of Boomer Corporation as at December 31, 2020 is presented in table Assets Cash Short-term investments Accounts receivable $18,500

image text in transcribedimage text in transcribed
below. The Statement of Financial Position of Boomer Corporation as at December 31, 2020 is presented in table Assets Cash Short-term investments Accounts receivable $18,500 Merchandise inventory 20,400 Prepaid expenses 43,400 Plant and equipment 49,200 Total assets 13,600 272, 100 417,200 Liabilities and Shareholders' Equity Accounts payable Accrued wages payable 40,700 5,200 Income taxes payable 5,800 Notes payable (due October 30, 2025) 25,000 Total Liabilities 146,700 140,000 Common shares 130,500 Retained earnings 270,500 Total Shareholders' Equity 417,200 Total liabilities and Shareholders' Equity Additional information (all income statement information is listed below): 5: 1. As at December 31, 2019, Boomer's Liabilities totaled $109,200, Common Shares were $168,000 and Retained Earnings were $108,800. 2. 2020 Revenue was $963,000 and Cost of Goods Sold was $369,000. Interest Expense for 2020 was $8,600. Income before Income Tax for 2020 was $56,000, and Income Tax Rate for 2020 was 25%. 3. Pointet price per share of common stock at December 31, 2020 was $8.63 and the number of common shares outstanding at December 31, 2020 was 81,200. Using the data relating to Boomer Corporation, calculate the 2020 financial ratios listed below. Show all be 6: Required: your calculations clearly for numbers not given (description not required and no need to type the formula of the ratios). Indicate Return on Total Assets, Gross Profit Margin, and Dividend Yield as percentages. Round all calculations (intermediate and final) to two decimal places; for examples: 9.26 and 4.26%. 1 Return on Total Assets (4 points) MacBook AirIvriIIula of the ratios). Indicate Return on Total Assets, Gross Pr percentages. Round all calculations (intermediate and final) to two d 4.26%. 1. Return on Total Assets (4 points) 2. Gross Profit Margin (2 points) 3. Current Ratio (4 points) 4. Debt to Total Asset (1 point) 5. Time Interest Earned Ratio (2 points) 6. Dividend Yield (3 points) 1. ROA: net Income/average asset MacBook Air

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

Financial Accounting Plus

Authors: Robert Libby, Patricia Libby, Daniel Short

8th Edition

1259116832, 9781259116834

More Books

Students also viewed these Accounting questions

Question

How does an applicant apply?

Answered: 1 week ago

Question

3) Which is a better project evaluation tool - NPV or IRR? EXPLAIN.

Answered: 1 week ago

Question

What is meant by planning or define planning?

Answered: 1 week ago

Question

Define span of management or define span of control ?

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago