Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

finish all The comparative financial statements prepared at December 31, year 2. for Goldfish Company showed the following summarized data: Year 2 Year 1 $309,

finish all
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The comparative financial statements prepared at December 31, year 2. for Goldfish Company showed the following summarized data: Year 2 Year 1 $309, 140. $260,000 241,800 282,800 67,340 58,000 46,470 41,400 20,870 16,600 9,680 7.580 $ 11, 190 $ 9, 100 Statement of Earnings Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Current liabilities (no interest) Non-current liabilities (10% interest) Common shares (6,000 shares) Retained earningst $ 3,960 12,610 36,819 52,430 $105,810 $ 12,850 40,870 30,000 22,090 $105,810 $ 7.800 15,000 32,000 44,000 $ 98,800 $ 14,900 36,000 30,000 17,900 $ 98,800 "One-third was credit sales. During Year 2, cash dividends amounting to $7,000 were declared and paid. Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Check my w Component Percentages Year 2 % % es % % % % Statement of earings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Current liabilities % % % % 2 % % % % % % Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity % Next > of 3 Check my world Compute the following for year 2: 2-a. Percentage markup on sales. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) Average percentage % 2-b. Income tax rate. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) % Average income tax 2-c. Net profit margin ratio. Was it a good or poor indicator of performance? (Round percentage answer to 2 decimal (i.e., 0.1243 should be entered as 12,43).) % Net profit margin ratio 2-d. Percentage of total resources invested in property, plant, and equipment. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Check my work Percentage % 2-e. Debt-to-equity ratio. Interpret the result. (Round the final answer to 2 decimal places.) Debt-to-equity ratio 2-1. Return on assets. Assume that long-term debt increased to $40,870 in month 1 of year 2. (Round intermediate calculations to 3 decimal places and percentage answer to 2 decimal places (le, 0.1243 should be entered as 12,43)) % Return on assets 2 of 3 Next > 113 2-9. Return on equity. (Round percentage answer to 2 decimal piaces (.e., 02242 should be entered as 12.43) Return on equity % 2 h. Financial leverage percentage. Did borrowing from creditors benefit shareholders? (Round intermediate calculations and final answer to 2 decimal places.) % Financial leverage percentage

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

Cost Accounting A Managerial Emphasis Revised

Authors: Charles T. Horngren, Monte Wynder, William Maguire, Rebecca Tan, Srikant Datar, Lester E. Heitger

1st Australian Edition

1442554770, 978-1442554771

More Books

Students also viewed these Accounting questions

Question

=+beliefs about the brand, product, or service?

Answered: 1 week ago

Question

=+4. Did your message properly reflect the brand's image?

Answered: 1 week ago