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USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 16-19 Financial statement data for Gritletics, Inc. (a fitness product retail company) are given below. All figures are
USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 16-19 Financial statement data for Gritletics, Inc. (a fitness product retail company) are given below. All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2018 and use your constructed statement to answer the following 4 questions. Advertising 19,840 Beginning of year inventory 58,620 Depreciation 5.960 End of year inventory 56,870 General and administrative expenses 24.150 Gross sales 987,950 Interest expense 11.270 Lease payments 16,840 Management salaries 201.420 Purchases 665,760 Research and development 2.850 Returns and allowances 8,490 Taxes 11.860 16. What was gross profit from Gritletics' income statement for the year ending December 31, 2019? 17. What was operating profit (1.e., EBIT) from Gritletics' income statement for the year ending December 31, 2019? 18. What was profit before taxes (.e., EBT) from Gritletics' income statement for the year ending December 31, 2019 19. What was net income from Gritletics' income statement for the year ending December 31, 2019? 20. Given the following information for Bloominati, Inc., calculate per share dividend dollar amount (that is, the dividends per share), rounded to the nearest cent (i.e., 85.21843 = $5.22) that the company paid out in 2019: Retained earnings reported on December 31, 2018 balance sheet: $4,218,630 Retained earnings reported on December 31, 2019 balance sheet: $4,326,850 Net Income reported on December 31, 2018 income statement: $658,740 Net Income reported on December 31, 2019 income statement: $547,960 Number of shares of common stock outstanding at the end of 2018: 206,860 shares Number of shares of common stock outstanding at the end of 2019: 202,000 shares 21. The Canavana Company gathered the following condensed data for the year ended December 31, 2019: Account Amount (or percentage) Cost of Goods Sold $500,000 Net Sales 975,000 Selling Expenses 150,000 Interest Expense 25,000 Administrative Expenses 175,000 Common Stock Dividends Paid 50,000 Income tax percentage 35% The Canavana Company's assets at the beginning of 2019 were $900,000, and the assets were $950,000 at the end of 2019. What did the Canavana Company report as net income on its 2019 income statement? 22. In 2019, the GlowScapes, Inc. purchased 2,589,600 units from its supplier at a cost of $26.00 per unit. GlowScapes sold 2,786,450 units of its product in 2019 at a price of $38.00 per unit. GlowScapes began 2019 with 154,900 units in inventory (inventory is carried at a cost of $26.00 per unit). Using this information, compute GlowScapes' gross profit for 2019. 23. Referring back to the previous question, compute-Glow Seapes 2019 ending inventory balance in dollars fvalued at-eest per unit of $26.00). Enter 999 as your answer for this question. 24. In 2019, Strydo, Inc. (a retail clothing company) sold 482,000 units of its product at an average price of $37.50 per unit . The company reported estimated returns and allowances in 2019 of 1.4 percent of gross revenue. Strydo actually purchased 512,400 units of its product from its manufacturer in 2019 at an average cost of $20.00 per unit. Strydo began 2019 with 10,250 units of its product in inventory (carried at an average cost of $20.00 per unit). Operating expenses (excluding depreciation) for Strydo, Inc. in 2019 were $3,526,000 and depreciation expense was $950,000. Strydo had $44,000,000 in debt outstanding throughout all of 2019. This debt carried an average interest rate of 5.5 percent. Finally, Strydo's tax rate was 25 percent. Strydo's fiscal year runs from January 1 through December 31. Given this information, compute net income for Strydo, Inc. for 2019. USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 25-29 Financial data for Amazures, Inc. is given below. All figures are in dollars. Use this data to construct a Balance Sheet for the company for the year ending December 31, 2019 and use your constructed statement to answer the following 5 questions (i.e., 11 through 15). NOTE: Not every item in the list below belongs on the balance sheet - you have to use some given data to determine needed accounts for the balance sheet . However, other than what is listed and/or can be derived, there are no other accounts on Jade's balance sheet - use cash as a plug figure to balance the balance sheet. Accounts payable 2.875.400 Accruals 86,300 Accumulated depreciation 16,986,900 Additional paid in capital 9,785.900 Beginning of year inventory 12,479,200 Common stock ($1.60 par value) 1.876,000 Cost of goods sold 147.956,800 Current portion of Long-term debt 3.754,100 Gross accounts receivable 2.148.600 Gross fixed assets 52,789,300 Long-term debt (excluding current portion) 24.768.200 Purchases 146,795,100 Retained earnings 7,986,800 Returns and allowances 37,600 Short-term bank loan 547,600 Cash ?? 25. What did Amazures record as Total Current Assets on December 31, 2019 balance sheet? 26. What did Amazures record as Total Current Liabilities on December 31, 2019 balance sheet? 27. What did Amazures record as Total Assets on December 31, 2019 balance sheet? 28. What was Total Shareholder's Equity on Amazures December 31, 2019 balance sheet? 29. Amazures, Inc. reported net income for 2019 of 52,286,200 and the company paid dividends of S1.05 per share in 2019. Given this information (along with the data provided above), compute what Amazures Company reported as retained carings on its December 31, 2018 balance sheet? (Assume that no additional shares of stock were issued between December 31, 2018 and December 31, 2019). 5 USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 30 - 33 Brown Co. purchased a piece of equipment last year for $900,000. Management estimates that the equipment will have a useful life of six years and no salvage value. The depreciation expense recorded for tax purposes is computed using the double-declining balance method of depreciation. The company uses the straight-line method of depreciation for reporting purposes. 30. Calculate the amount of depreciation expense for reporting purposes for this year (Year 2). 31. Calculate the amount of depreciation expense for tax purposes for this year (Year 2). 32. Will a deferred tax asset or a deferred tax liability be created (in Year 2) as a result of the depreciation recorded for tax and financial reporting purposes? (Circle your choice below) a. Deferred tax asset b. Deferred tax liability 33. Assuming that the company's tax rate is 40%, what dollar amount will be added to the deferred tax account in Year 2 as a result of the depreciation timing difference? USE THE INFORMATION BELOW TO ANSWER THE QUESTIONS 34 - 40 Purchases of inventory and sales information for the Baker Company (a retailer) are summarized below by quarter. Assume Baker Company began operations on January 1, 2019 (with zero inventory): Month Purchases in Units Cost per Unit January 14,000 S10 February 5.000 SIO March 3,000 S12 Quarter 1 sales - 14,000 units at S20 per unit April 4,000 S14 May 9.000 S18 June 5.000 S18 Quarter 2 sales - 17,000 units at $24 per unit July 3.000 August 7.000 September 6,000 Quarter 3 sales - 24,000 units at $28 per unit S20 S21 S20 October 6,000 November 11.000 December 10,000 Quarter 4 sales - 22,000 units at $32 per unit $22 $24 S26 Given the information above, compute the following amounts (in dollars) for the period covering January 1, 2019 through December 31, 2019 (that is, for the entire year): 34. Cost of goods sold (FIFO) = 35. Gross profit (FIFO) - 36. Cost of goods sold (LIFO) - 37. Gross profit (LIFO) 38. Did a LIFO layer reduction occur for Baker Company (assuming the company used the LIFO method) during the year? a. Yes b. No 39. If your answer to question 38 was YES, in which quarter? (If your answer to question 35 was NO, choose answer choice e) a. Q1 b. Q2 c. Q3 d. 04 c. Baker Company did not have a LIFO layer reduction during the year. 40. If your answer to question 38 was YES and if the appropriate cost of inventory during the quarter in which the LIFO layer reduction occurred was the average cost of all units purchased during that quarter, fill in the dollar amount (on the line below) that the company reported in the following footnote to the 2019 annual report (if Baker did not experience a LIFO layer reduction in 2019, enter 0): Cost of goods sold has been reduced and operating income increased by $_ in 2019 as a result of liquidations of LIFO inventories
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