Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Slagger Corwentue has a year end of December 31 and is incorporated in Canada. The Statement of Financial Pouson of Slapper Corporation as at
Slagger Corwentue has a year end of December 31 and is incorporated in Canada. The Statement of Financial Pouson of Slapper Corporation as at December 31, 2021 is presented below. Anet tash Short-term investments Accounts revenable Merchandise inventory Prepaid expenses Plant and equipment Total assets Liabilities and Shareholders' Equity Accounts payable Accrued wages payable Income taxes payable Notes payable (due October 30, 2026) Total Liabilities Common shares Retained earnings Total Shareholders' Equity Total liabilities and Shareholders' Equity Additional information: $8.500 30,400 43,400 49,200 13,600 272.100 417.200 40,700 5,200 5,800 95.000 146.700 140,000 130.500 270.500 417.200 1.2021 Revenue was $986,000 and Cost of Goods Sold was $392,000. Interest Expense for 2021 was $6,800. Income before Income Tax for 2021 was $52,000, and Income Tax Rate for 2021 was 25%. 2 As at December 31, 2020. Boomer's Liabilities totaled $119,200, Common Shares were $158,000 and Retained Earnings were $91,500. 3. Slagger Corporation's price per share of common stock (per tmxmoney.com) at December 31, 2021 was $7.63 and the number of common shares outstanding at December 31, 2021 was 77,200, which is up by 10,000 shares since a year ago. Required: Calcufate the 2021 financial ratios listed below. Show all your calculations clearly for numbers not given (description not required and no need to type the formula of the ratios). Indicate Profit Margin and Return on Equity as percentages. Round all calculations (intermediate and final) to two decimal places; for examples: 9.26 and .26% 1. Profit Margin (2 points) 2. Return on Equity (3 points) 3. Price-Earnings Ratio (3 points) 4. Current Ratio (4 points) 5. Times Interest Earned (2 points) 6. The CEO is hoping to see favorable trends in these above ratios. Indicate which of the above ratios they should hope to see increasing to support their favorable trend for next year (1 point).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started