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The following accounts and related balances of Swan Designers, Inc., as of December 31, 2016, are arranged in no particular order: (Click the icon
The following accounts and related balances of Swan Designers, Inc., as of December 31, 2016, are arranged in no particular order: (Click the icon to view the account information.) Read the requirements. Requirement 1. Prepare Swan's classified balance sheet in the account format at December 31, 2016. Start by completing the Assets section of the statement, and then prepare the Liabilities and Stockholders' Equity sections of the statement. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Assets Current assets: Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Property, plant and equipment, net Intangible assets: Trademarks, net Goodwill Swan Designers, Inc. Balance Sheet December 31, 2016 Current liabilities: Accounts payable Dividends payable Accrued liabilities Liabilities Total current liabilities Long-term note payable Total liabilities Stockholders' Equity Paid-in capital in excess of par-common shares shares shares shares Y par, Requirement 2. Use DuPont analysis to compute rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2016. Start by calculating the rate of return on total assets (ROA). Select the DuPont model formula needed and then enter the amounts O calculate ROA. (Ignore Interest Expense in the ROA calculation. Dividends are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) ROA x X Calculate the rate of return on common stockholders' equity (ROE). Select the DuPont model formula needed and then enter the amounts to calculate ROE. (Ignore Interest Expense in the ROA calculation. Dividends are not preferred. Round percentages to one decimal place, X.X% and other component ratios to three decimal places, X.XXX.) ROE X Y Comparative data from prior years. Current year payroll records. Industry competitors' data. Par value of stock. Value of the company's treasury stock. because % = Requirement 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision? These rates of return appear to be What additional information might help you make your decision? (If a box is not used in the table, leave the box empty; do not make a selection.) % he input fields and then continue to the next question. These rates of return appear to be What additional information might help you make your because both rates are low and return on equity is greater than return on assets. both ratios are low and return on equity is less than return on assets. both ratios are high and return on equity is greater than return on assets. le Requirements. 1. Prepare Swan's classified balance sheet in the account format at December 31, 2016. Use DuPont Analysis to compute rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2016. 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision? Print X Done the rate of return on common stockholders' equity (ROE). Select the DuPont model formula needed and then e X% and other component ratios to three decimal places, X.XXX.) % ROE % % X ment 3. Do these rates of retum suggest strength or weakness? Give your reason What additional information Data Table Cash Accounts receivable, net..... Paid-in capital in excess of par-common Accrued liabilities Long-term note payable Inventory Dividends payable. Retained earnings. Accounts payable Trademarks, not.. Goodwill... .....$ 50,000 Interest expense. 25,000 Property, plant and equipment, net 21,000 Common stock, $1 par, 29,000 99.000 1.300.000 shares authorized. 119,000 shares issued 97,000 Prepaid expenses... 5,000 Common stockholders' equity, ? December 31, 2015 132,000 Net income.. 2,000 Total assets, December 31, 2015. 10,000 Treasury stock, 28,000 shares at cost Net sales.... ****** S 16,400 362,000 119,000 20,000 241,000 71,000 497,000 31,000 1,300,000
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Formula sheet A B C D E F G H I J K L 2 Requirement1 3 Assets Liabilities 4 5 Current Assets Current Liabilities 6 Cash 50000 Account Payable 132000 7 ...Get Instant Access to Expert-Tailored Solutions
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