Question
Can I please get help. Thank you. 1. Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31, 2020.
Can I please get help. Thank you.
1. Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31, 2020.
| 2020 | 2019 | |
| Net sales revenue (all credit) | $1,700,000 | |
| Cost of goods sold | 1,040,000 | |
| Gross margin | 660,000 | |
| Selling and general expenses | 420,000 | |
| Interest expense | 60,000 | |
| Net income | $ 180,000 | |
| Current assets | $ 100,000 | $ 90,000 |
| Long-term assets | 830,000 | 800,000 |
| Total assets | $930,000 | $890,000 |
| Current liabilities | $ 72,000 | $ 56,000 |
| Long-term liabilities | 204,000 | 390,000 |
| Common stockholders equity | 654,000 | 444,000 |
| Total liabilities and stockholders' equity | $930,000 | $890,000 |
Inventory and prepaid expenses account for $50,000 of the 2020 current assets. Average inventory for 2020 is $36,000. Average net accounts receivable for 2020 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2020. The market price per share of common stock is $27 at the end of 2020. The EPS for 2020 is equal to $15 per share.
Refer to Exhibit 13-1. What is the return on assets for 2020 (rounded to the nearest tenth of a percent)?
A) None of the answer choices is correct.
B) 19.8%
C) 197.8%
D) 19.4%
E) 51.7%
2. Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31, 2020.
| 2020 | 2019 | |
| Net sales revenue (all credit) | $1,700,000 | |
| Cost of goods sold | 1,040,000 | |
| Gross margin | 660,000 | |
| Selling and general expenses | 420,000 | |
| Interest expense | 60,000 | |
| Net income | $ 180,000 | |
| Current assets | $ 100,000 | $ 90,000 |
| Long-term assets | 830,000 | 800,000 |
| Total assets | $930,000 | $890,000 |
| Current liabilities | $ 72,000 | $ 56,000 |
| Long-term liabilities | 204,000 | 390,000 |
| Common stockholders equity | 654,000 | 444,000 |
| Total liabilities and stockholders' equity | $930,000 | $890,000 |
Inventory and prepaid expenses account for $50,000 of the 2020 current assets. Average inventory for 2020 is $36,000. Average net accounts receivable for 2020 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2020. The market price per share of common stock is $27 at the end of 2020. The EPS for 2020 is equal to $15 per share.
Refer to Exhibit 13-1. What is the gross margin ratio for 2020 (rounded to the nearest tenth of a percent)?
A) 63.5%
B) None of the answer choices is correct.
C) 38.8 %
D) 10.6
E) 27.3%
3. Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31, 2020.
| 2020 | 2019 | |
| Net sales revenue (all credit) | $1,700,000 | |
| Cost of goods sold | 1,040,000 | |
| Gross margin | 660,000 | |
| Selling and general expenses | 420,000 | |
| Interest expense | 60,000 | |
| Net income | $ 180,000 | |
| Current assets | $ 100,000 | $ 90,000 |
| Long-term assets | 830,000 | 800,000 |
| Total assets | $930,000 | $890,000 |
| Current liabilities | $ 72,000 | $ 56,000 |
| Long-term liabilities | 204,000 | 390,000 |
| Common stockholders equity | 654,000 | 444,000 |
| Total liabilities and stockholders' equity | $930,000 | $890,000 |
Inventory and prepaid expenses account for $50,000 of the 2020 current assets. Average inventory for 2020 is $36,000. Average net accounts receivable for 2020 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2020. The market price per share of common stock is $27 at the end of 2020. The EPS for 2020 is equal to $15 per share.
Refer to Exhibit 13-1. What is the profit margin ratio for 2020 (rounded to the nearest tenth of a percent)?
A) 38.8%
B) 27.3%
C) 10.6%
D) 1.1%
E) None of the answer choices is correct.
4. Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31, 2020.
| 2020 | 2019 | |
| Net sales revenue (all credit) | $1,700,000 | |
| Cost of goods sold | 1,040,000 | |
| Gross margin | 660,000 | |
| Selling and general expenses | 420,000 | |
| Interest expense | 60,000 | |
| Net income | $ 180,000 | |
| Current assets | $ 100,000 | $ 90,000 |
| Long-term assets | 830,000 | 800,000 |
| Total assets | $930,000 | $890,000 |
| Current liabilities | $ 72,000 | $ 56,000 |
| Long-term liabilities | 204,000 | 390,000 |
| Common stockholders equity | 654,000 | 444,000 |
| Total liabilities and stockholders' equity | $930,000 | $890,000 |
Inventory and prepaid expenses account for $50,000 of the 2020 current assets. Average inventory for 2020 is $36,000. Average net accounts receivable for 2020 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2020. The market price per share of common stock is $27 at the end of 2020. The EPS for 2020 is equal to $15 per share.
Refer to Exhibit 13-1. What is the current ratio for 2020 (rounded to two decimal places)?
A) 0.72
B) 1.39
C) None of the answer choices is correct.
D) 1.80
E) 1.44
5. Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31, 2020.
| 2020 | 2019 | |
| Net sales revenue (all credit) | $1,700,000 | |
| Cost of goods sold | 1,040,000 | |
| Gross margin | 660,000 | |
| Selling and general expenses | 420,000 | |
| Interest expense | 60,000 | |
| Net income | $ 180,000 | |
| Current assets | $ 100,000 | $ 90,000 |
| Long-term assets | 830,000 | 800,000 |
| Total assets | $930,000 | $890,000 |
| Current liabilities | $ 72,000 | $ 56,000 |
| Long-term liabilities | 204,000 | 390,000 |
| Common stockholders equity | 654,000 | 444,000 |
| Total liabilities and stockholders' equity | $930,000 | $890,000 |
Inventory and prepaid expenses account for $50,000 of the 2020 current assets. Average inventory for 2020 is $36,000. Average net accounts receivable for 2020 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2020. The market price per share of common stock is $27 at the end of 2020. The EPS for 2020 is equal to $15 per share.
Refer to Exhibit 13-1. What is the market capitalization at the end of 2020?
A) $930,000
B) $18,000
C) $324,000
D) $654,000
E) None of the answer choices is correct.
6. Exhibit 13-1 Xavier Company reported the following income statement and balance sheet amounts on December 31, 2020.
| 2020 | 2019 | |
| Net sales revenue (all credit) | $1,700,000 | |
| Cost of goods sold | 1,040,000 | |
| Gross margin | 660,000 | |
| Selling and general expenses | 420,000 | |
| Interest expense | 60,000 | |
| Net income | $ 180,000 | |
| Current assets | $ 100,000 | $ 90,000 |
| Long-term assets | 830,000 | 800,000 |
| Total assets | $930,000 | $890,000 |
| Current liabilities | $ 72,000 | $ 56,000 |
| Long-term liabilities | 204,000 | 390,000 |
| Common stockholders equity | 654,000 | 444,000 |
| Total liabilities and stockholders' equity | $930,000 | $890,000 |
Inventory and prepaid expenses account for $50,000 of the 2020 current assets. Average inventory for 2020 is $36,000. Average net accounts receivable for 2020 is $62,000. Average one-day sales are $5,900. There are 12,000 shares of common stock outstanding at the end of 2020. The market price per share of common stock is $27 at the end of 2020. The EPS for 2020 is equal to $15 per share.
Refer to Exhibit 13-1. What is the debt to equity ratio for 2019 (rounded to two decimal places)?
A) 0.88
B) 1.00
C) 0.50
D) None of the answer choices is correct.
E) 0.13
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
