Question #37
Question 37 (20 points) Saved Condensed statement of financial position and income statement data for Macaron Corporation follow: MACARON CORPORATION Statement of Financial Position December 31 2018 2017 2016 Assets Current assets Cash Accounts receivable (net) Inventory Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities and Shareholders' Equity Liabilities $25,000 54,600 99,000 178,600 58,900 $20,200 44,500 85,300 150,000 70,900 $17,900 48,000 64,500 130,400 47,500 496,500 369,300 256,000 $734,000 $590,200 $433,900 Current liabilities $85,300 156,300 241,600 Non-current liabilities $79,400 84,400 163,800 $30,100 20,200 50,300 Total liabilities Accounts receivable (net) 54,600 99,000 178,600 44,500 85,300 150,000 70,900 48,000 64,500 130,400 47,500 58,900 496,500 369,300 256,000 $734,000 $590,200 $433,900 Inventory Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities and Shareholders' Equity Liabilities Current liabilities Non-current liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $85,300 156,300 241,600 $79,400 84,400 163,800 $30,100 20,200 50,300 300,800 328,700 163,700 492,400 300,700 125,700 426,400 82,800 383,600 $734,000 $590,200 $433,900 MACARON CORPORATION Income Statement Year Ended December 31 2018 $220 200 2017 4.409 600 Sales Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 163,700 492,400 125,700 426,400 82,800 383,600 $734,000 $590,200 $433,900 MACARON CORPORATION Income Statement Year Ended December 31 2018 2017 Sales $739,800 $499,600 Less: Sales returns and allowances 39,900 49,900 Net sales 699,900 449,700 Cost of goods sold 451,900 300,100 Gross profit 248,000 149,600 Operating expenses 150,500 84,700 Income from operations 97,500 64,900 Interest expense 10,000 3,640 Income before income tax 87,500 61,260 Income tax expense 17,500 12,252 Net income $70,000 $49,008 Additional information: 1. The allowance for doubtful accounts was $4,800 in 2016, $4,500 in 2017, and $5,100 in 2018. 2. All sales were credit sales. 3. Net cash provided by onerating activities was $120.800 in 2017 and TAU VULUI buvussuu Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income 248,000 150,500 97,500 10,000 87,500 17,500 $70,000 UU, U 149,600 84,700 64,900 3,640 61,260 12,252 $49,008 Additional information: 1. The allowance for doubtful accounts was $4,800 in 2016, $4,500 in 2017, and $5,100 in 2018. 2. All sales were credit sales. 3. Net cash provided by operating activities was $120,800 in 2017 and $101,200 in 2018. 4. Net capital expenditures were $149,600 for 2017 and $178,600 for 2018. Calculate the following ratios for 2017 and 2018: (Round answers to 1 decimal place, e.g. 5.2:1 or 5.2% or 5.2. Enter negative answers preceeding either - sign, e.g. -45 or in parentheses, e.g. (45).) Format NOTE: 1 Decimal place required. You are required to state $1 timesor ' % IN NOTE: 1 Decimal place required. You are required to state $1' 'times.or'%' depending on each ratio. Incorrect or missing signs will result in negative marks. Ratio Year 2018 Year 2017 1) Current ratio 2) Receivables Turnover 3) Inventory Turnover 4) Debt to total assets 5) Times interest earned 6) Free cash flow 7) Gross Profit Margin 8) Profit Margin 9) Asset Turnover 10) Return on assets
