Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative statements of Bramble Interiors Ltd. are presented as follows: BRAMBLE INTERIORS LTD. Income Statement For the Year Ended December 31 2021 2020 Net
The comparative statements of Bramble Interiors Ltd. are presented as follows:
BRAMBLE INTERIORS LTD. Income Statement For the Year Ended December 31 | ||||
2021 | 2020 | |||
Net sales | $2,159,750 | $1,836,500 | ||
Cost of goods sold | 1,145,000 | 1,019,500 | ||
Gross profit | 1,014,750 | 817,000 | ||
Selling and administrative expenses | 500,000 | 491,000 | ||
Income from operations | 514,750 | 326,000 | ||
Other expenses and losses | ||||
Interest expense | 14,000 | 16,000 | ||
Income before income taxes | 500,750 | 310,000 | ||
Income tax expense | 108,275 | 82,000 | ||
Profit | $392,475 | $228,000 |
BRAMBLE INTERIORS LTD. Balance Sheet December 31 | ||||||
Assets | 2021 | 2020 | 2019 | |||
Current assets | ||||||
Cash | $80,000 | $129,100 | $114,200 | |||
Accounts receivable | 188,600 | 106,400 | 102,400 | |||
Inventory | 213,800 | 143,000 | 114,500 | |||
Total current assets | 482,400 | 378,500 | 331,100 | |||
Property, plant, and equipment (net) | 647,700 | 601,300 | 510,300 | |||
Total assets | $1,130,100 | $979,800 | $841,400 | |||
Liabilities and Shareholders Equity | ||||||
Current liabilities | ||||||
Accounts payable | $289,175 | $169,000 | $144,400 | |||
Income taxes payable | 40,000 | 47,000 | 45,500 | |||
Total current liabilities | 329,175 | 216,000 | 189,900 | |||
Bonds payable | 190,000 | 195,000 | 200,000 | |||
Total liabilities | 519,175 | 411,000 | 389,900 | |||
Shareholders equity | ||||||
Common shares | 280,000 | 280,000 | 300,000 | |||
Retained earnings | 330,925 | 288,800 | 151,500 | |||
Total shareholders equity | 610,925 | 568,800 | 451,500 | |||
Total liabilities and shareholders equity | $1,130,100 | $979,800 | $841,400 |
Additional information:
1. | All sales were on account. | |
2. | Weighted-average common shares in 2021 were 52,000 and in 2020 were 54,000. |
(a)
Calculate the following ratios for 2021 and 2020. (Round earnings per share, current ratio, acid-test ratio and asset turnover answers to 2 decimal places, e.g. 1.83 or 1.83% and all other answers to 1 decimal place, e.g. 1.5 or 1.5%. Use 365 days for calculation.)
2021 | 2020 | |||||||
1. | Gross profit margin | % | % | |||||
2. | Profit margin | % | % | |||||
3. | Earnings per share | $ | $ | |||||
4. | Receivables turnover | times | times | |||||
5. | Collection period | days | days | |||||
6. | Inventory turnover | times | times | |||||
7. | Days sales in inventory | days | days | |||||
8. | Return on common shareholders equity | % | % | |||||
9. | Return on assets | % | % | |||||
10. | Current ratio | |||||||
11. | Acid-test ratio | |||||||
12. | Asset turnover | times | times | |||||
13. | Debt to total assets | % | % |
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