(Evaluating profitability) Last year, Stevens Inc. had sales
of $396,000, with a cost of goods sold...
(Evaluating profitability) Last year, Stevens Inc. had sales
of $396,000, with a cost of goods sold of 115,000.
The firm's operating expenses were $126,000, and its increase
in retained earnings was $50,000.
There are currently 21,000 common stock shares outstanding and
the firm pays a$1.56 dividend per share.
a. Assuming the firm's earnings are taxed at 34 percent,
construct the firm's income statement.
b. Compute the firm's operating profit margin.
c. What was the times interest earned?
a. Assuming the...
Zipper Corporation reported the following condensed income
statement for 2015:
Sales
$5,900,000
Cost of goods sold...
Zipper Corporation reported the following condensed income
statement for 2015:
Sales
$5,900,000
Cost of goods sold
4,130,000
Gross profit
$1,770,000
Less expenses
-1,520,000
Net income before taxes
$250,000
Less income taxes
100,000
Net income after taxes
$150,000
Assume the following:
Average inventory
$690,000
Average accounts
receivable
$1,220,000
Average accounts payable
$390,000
(Use 365 days a year)
Compute the following: (Round answers to 2 decimal
places, e.g. 52.75.)
Inventory turnover
times
Accounts receivable
turnover
times
Average number of days to
sell...
Juroe Company provided the following income statement for last
year:
Sales
$11,600,000
Cost of goods sold...
Juroe Company provided the following income statement for last
year:
Sales
$11,600,000
Cost of goods sold
3,000,000
Gross margin
$8,600,000
Operating expenses
3,800,000
Operating income
$4,800,000
Interest expense
1,000,000
Income before
taxes
$3,800,000
Income taxes
1,400,000
Net income
$2,400,000
Juroe's balance sheet as of December 31 last year showed total
liabilities of $11,200,000, total equity of $6,450,000, and total
assets of $17,650,000.
Required:
1. Calculate the return on sales. Round to two
decimal places.
%
2. The return on sales...
In the year just? ended, Callaway Lighting had sales of
$5,000,000 and incurred cost of goods...
In the year just? ended, Callaway Lighting had sales of
$5,000,000 and incurred cost of goods sold equal to $
4,500,000.
The? firm's operating expenses were $ 130,000 and its increase
in retained earnings was $ 40,000 for the year. There are currently
100,000 common stock shares outstanding and the firm pays a $ 1.485
dividend per share. The firm has $ 1,000,000 in? interest-bearing
debt on which it pays 8.0 percent interest.
a.??Assuming the? firm's earnings are taxed at...
Paxton Company provided the following income statement for last
year:
Sales  
Paxton Company provided the following income statement for last
year:
Sales
$ 87,021,000
Cost of goods sold
(62,138,249)
Gross margin
$ 24,882,751
Operating expenses
(19,371,601)
Operating income
$ 5,511,150
Interest expense
(875,400)
Income before taxes
$ 4,635,750
Income taxes
(1,854,300)
Net income
$ 2,781,450
Calculate the times-interest-earned ratio. (Note: Round the
answer to one decimal place.)
Performance
Evaluation
Company
A
B
C
Sales
$16,000,000
$10,000,000
$12,000,000
Operating Expenses
$15,200,000
$9,200,000
$10,800,000
Total...
Performance
Evaluation
Company
A
B
C
Sales
$16,000,000
$10,000,000
$12,000,000
Operating Expenses
$15,200,000
$9,200,000
$10,800,000
Total Assets
$8,000,000
$4,000,000
$8,000,000
Stockholders' Equity
$1,500,000
$700,000
$1,600,000
Target Rate of Return
8%
15%
10%
Show your
work for full or for partial credit.
A) Please provide
the sales margin for company A:
B) The capital
turnover for company A is:
C) Please provide
the return on investment for company B:
D) The residual
income for company C is:
Income Statement
Sales revenues
760,500
cost of goods sold
225,000
Operating expenses (excluding depreciation)
166,500
Depreciation...
Income Statement
Sales revenues
760,500
cost of goods sold
225,000
Operating expenses (excluding depreciation)
166,500
Depreciation expenses
13,500
Loss on disposal of equipment
4,500
Interest expenses
63,000
Total operating expenses
(472,500)
income before taxes
288,000
income tax expense
(70,500)
net income
217,500
Statement of financial Positions
31/12/2019
31/12/2018
Assets
Cash
82,500
49,500
accounts receivables
30,000
45,000
inventory
22,500
15,000
prepaid insurance
7,500
1,500
Land
195,000
30,000
Building
240,000
60,000
less: accumulated depreciation- Building
(16,500)
(7,500)
Equipment
40,500
15,000
less: accumulated...
Solano Company has sales of $740,000, cost of goods sold of
$490,000, other operating expenses of...
Solano Company has sales of $740,000, cost of goods sold of
$490,000, other operating expenses of $46,000, average invested
assets of $2,200,000, and a hurdle rate of 10 percent.
Required:
1. Determine Solano’s return on investment (ROI),
investment turnover, profit margin, and residual income.
(Do not round your intermediate calculations. Enter your
ROI and Profit Margin percentage answer to the nearest 2 decimal
places, (i.e., 0.1234 should be entered as 12.34%). Round your
Investment Turnover answer to 4 decimal places.)...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages,...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages, salaries, benefits $6,000,000
Raw materials 3,000,000
Depreciation 1,500,000
General, selling, and administrative expenses 1,500,000
Total operating expenses 12,000,000
Earnings before interest and taxes (EBIT) $3,000,000
Less: Interest expense 750,000
Earnings before taxes $2,250,000
Less: Income taxes 1,000,000
Earnings after taxes $1,250,000
Less: Preferred dividends 250,000
Earnings available to common stockholders $1,000,000
Earnings per share—250,000 shares outstanding $4.00
Assume that all depreciation and 75 percent...
Sales
$
61,500
Cost of goods
sold
52,400
Gross
profit
$
9,100
operating expenses $15,700...
Sales
$
61,500
Cost of goods
sold
52,400
Gross
profit
$
9,100
operating expenses $15,700
operating loss $6600
a. Rearrange the preceding income statement to
the contribution margin format.
Based on an analysis of cost behavior patterns, it has been
determined that the company's contribution margin ratio is 17%.
0
$0
b. If sales increase by 15%, what will be the
firm's operating income (or loss)? (Do not round
intermediate calculations.)c. Calculate
the amount of revenue required for...