Golden Corporation declared and paid $3,700 of cash dividends during the current year ended December 31 Its financial statements also reported the following summarized data Current Previous Income Statement Sales revenue $ 215,000 $ 193,000 Cost of goods sold 124,000 114,000 Gross profit 91,000 79,000 Operating expenses 60,300 56,000 Interest expense 3,400 3,300 Income before income taxes 27,300 19,700 Income tax expense 8,190 3,700 Net income $ 19,110 $ 16,000 Balance Sheet Cash $ 5,410 $ 8,700 Accounts receivable (net) 26,000 26,500 Inventory 47,000 42,000 Property and equipment (net) 52,000 45,000 $ 130,410 $ 122,200 Current liabilities $ 16,000 $ 23,900 Note payable (long term) 52,000 52,000 Common stock (par $5) 34,200 34,200 Additional paid in capital 6,400 5,700 Retained earnings 21,810 6,400 $ 130,410 $ 122,200 Required Compute the gross profit percentage for the current and previous years Are the current year results better, or worse, than those for the previous year Compute the net profit margin for the current and previous years Are the current year results better, or worse, than those for the previous year Compute the earnings per share for the current and previous years Are the current year results better, or worse, than those for the previous year TIP To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding Common Stock equals the par value per share times the number of shares Stockholders equity totaled $34,200 at the beginning of the previous year Compute the return on equity (ROE) ratios for the current and previous years Are the current year results better, or worse, than those for the previous year Net property and equipment totaled $38,500 at the beginning of the previous year Compute the fixed asset turnover ratios for the current and previous years Are the current year results better, or worse, than those for the previous year Compute the debt to assets ratios for the current and previous years Is debt providing financing for a larger or smaller proportion of the companys asset growth Compute the times interest earned ratios for the current and previous years Are the current year results better, or worse, than those for the previous year After Golden released its current years financial statements, the companys stock was trading at $37 After the release of its previous years financial statements, the companys stock price was $28 per share Compute the P E ratios for both years Does it appear that investors have become more (or less) optimistic about Goldens future success Complete this question by entering your answers in the tabs below 1 a Compute the gross profit percentage for the current and previous years (Round your answers to 1 decimal place ) 1 a Gross Profit Percentage Current Year Previous Year Complete this question by entering your answers in the tabs below 2 a Compute the net profit margin for the current and previous years (Round your answers to 1 decimal place ) 2 a Net Profit Margin Current Year Previous Year 6 a Compute the debt to assets ratios for the current and previous years (Round your answers to 2 decimal places ) 6 b Is debt providing financing for a larger or smaller proportion of the companys asset growth 6 a Debt to Assets Current Year Previous Year 8 a After Golden released its current years financial statements, the companys stock was trading at $37 After the release of its previous years financial statements, the companys stock price was $28 per share Compute the P E ratios for both years (Round your intermediate calculations to 2 decimal places and final answers to 1 decimal place ) Show less 8 a Price Earnings Ratio Current Year Previous Year

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Posted on Jul 23, 2024

Golden Corporation declared and paid $3,700 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data:

	Current		Previous
Income Statement
Sales revenue	$	215,000	$	193,000
Cost of goods sold		124,000		114,000
Gross profit		91,000		79,000
Operating expenses		60,300		56,000
Interest expense		3,400		3,300
Income before income taxes		27,300		19,700
Income tax expense		8,190		3,700
Net income	$	19,110	$	16,000
Balance Sheet
Cash	$	5,410	$	8,700
Accounts receivable (net)		26,000		26,500
Inventory		47,000		42,000
Property and equipment (net)		52,000		45,000
	$	130,410	$	122,200
Current liabilities	$	16,000	$	23,900
Note payable (long-term)		52,000		52,000
Common stock (par $5)		34,200		34,200
Additional paid-in capital		6,400		5,700
Retained earnings		21,810		6,400
	$	130,410	$	122,200

Required:

Compute the gross profit percentage for the current and previous years. Are the current year results better, or worse, than those for the previous year?
Compute the net profit margin for the current and previous years. Are the current year results better, or worse, than those for the previous year?
Compute the earnings per share for the current and previous years. Are the current year results better, or worse, than those for the previous year? TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. Common Stock equals the par value per share times the number of shares.
Stockholders equity totaled $34,200 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. Are the current year results better, or worse, than those for the previous year?
Net property and equipment totaled $38,500 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current year results better, or worse, than those for the previous year?
Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the companys asset growth?
Compute the times interest earned ratios for the current and previous years. Are the current year results better, or worse, than those for the previous year?
After Golden released its current years financial statements, the companys stock was trading at $37. After the release of its previous years financial statements, the companys stock price was $28 per share. Compute the P/E ratios for both years. Does it appear that investors have become more (or less) optimistic about Goldens future success?

Complete this question by entering your answers in the tabs below.

1-a. Compute the gross profit percentage for the current and previous years. (Round your answers to 1 decimal place.)

1-a.		Gross Profit Percentage
	Current Year		%
	Previous Year		%

Complete this question by entering your answers in the tabs below.

2-a. Compute the net profit margin for the current and previous years. (Round your answers to 1 decimal place.)

2-a.		Net Profit Margin
	Current Year		%
	Previous Year		%

6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the companys asset growth?

6-a.		Debt-to-Assets
	Current Year
	Previous Year

8-a. After Golden released its current years financial statements, the companys stock was trading at $37. After the release of its previous years financial statements, the companys stock price was $28 per share. Compute the P/E ratios for both years. (Round your intermediate calculations to 2 decimal places and final answers to 1 decimal place.)

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