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.)
Elway Company provided the following income statement for the
last year:
Sales
$888,440,000
Less: Variable expenses...
Elway Company provided the following income statement for the
last year:
Sales
$888,440,000
Less: Variable expenses
540,819,000
Contribution
margin
$347,621,000
Less: Fixed expenses
196,285,000
Operating income
$151,336,000
At the beginning of last year, Elway had $38,626,000 in
operating assets. At the end of the year, Elway had $41,362,000 in
operating assets.
Required:
1. Compute average operating assets.
$
2. Compute the margin (as a percent) and
turnover ratios for last year. If required, round your answers to
two decimal places....
1. Pollux
Company had the following income statement for last year:
Sales
$360,000
Less: Cost of goods...
1. Pollux
Company had the following income statement for last year:
Sales
$360,000
Less: Cost of goods sold
195,000
Gross margin
$165,000
Less: Selling & administrative expense
78,600
Operating income
$ 86,400
Beginning assets were $565,000 and ending assets were
$597,000.
(Carry computations out to three decimal places.)
A.
What are average operating assets?
B.
What is margin?
C.
What is turnover?
D.
What is ROI?
Elway Company provided the following income statement for the
last year:
Sales
$784,230,000
Less: Variable expenses...
Elway Company provided the following income statement for the
last year:
Sales
$784,230,000
Less: Variable expenses
552,409,000
Contribution margin
$231,821,000
Less: Fixed expenses
194,592,000
Operating income
$37,229,000
At the beginning of last year, Elway had $38,659,000 in
operating assets. At the end of the year, Elway had $41,363,000 in
operating assets.
Required:
1. Compute average operating assets.
$
2. Compute the margin (as a percent) and
turnover ratios for last year. If required, round your answers to
two decimal places....
(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...
East Mullett Manufacturing earned operating income last year as
shown in the following income statement:
Sales...
East Mullett Manufacturing earned operating income last year as
shown in the following income statement:
Sales $531,250
Cost of goods sold 280,000
Gross margin $251,250
Selling and administrative expense 180,900
Operating income $70,350
Less: Income taxes (@ 40%) 28,140
Net income $42,210
At the beginning of the year, the value of operating assets was
$390,000. At the end of the year, the value of operating assets was
$460,000.
Required: For East Mullett Manufacturing, calculate the
following:
1. Average operating assets...
McKenzie Sales, Ltd.
Comparative Income Statement
This Year
Last Year
Sales
$
7,300,000
$
5,548,000
Cost...
McKenzie Sales, Ltd.
Comparative Income Statement
This Year
Last Year
Sales
$
7,300,000
$
5,548,000
Cost of goods sold
4,620,000
3,510,500
Gross margin
2,680,000
2,037,500
Selling and administrative expenses:
Selling expenses
1,381,000
1,076,500
Administrative expenses
705,000
618,000
Total expenses
2,086,000
1,694,500
Net operating income
594,000
343,000
Interest expense
105,000
87,000
Net income before taxes
$
489,000
$
256,000
Members of the company’s board of directors are surprised to see
that net income increased by only $233,000 when sales increased by...
(Evaluating profitability) Last year, Stevens Inc. had sales
of $400,000, with a cost of goods sold...
(Evaluating profitability) Last year, Stevens Inc. had sales
of $400,000, with a cost of goods sold of $114,000. The firm's
operating expenses were $127,000, and its increase in retained
earnings was $57,000. There are currently 22,200 common stock
shares outstanding and the firm pays a $1.58 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...
Joyner Company’s income statement for Year 2 follows: Sales $
708,000 Cost of goods sold 126,000...
Joyner Company’s income statement for Year 2 follows: Sales $
708,000 Cost of goods sold 126,000 Gross margin 582,000 Selling and
administrative expenses 217,000 Net operating income 365,000 Gain
on sale of equipment 9,000 Income before taxes 374,000 Income taxes
112,200 Net income $ 261,800 Its balance sheet amounts at the end
of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $
211,800 $ 99,400 Accounts receivable 262,000 112,000 Inventory
320,000 281,000 Prepaid expenses 9,500...
Joyner Company’s income
statement for Year 2 follows:
Sales
$
705,000
Cost of goods
sold
58,000 ...
Joyner Company’s income
statement for Year 2 follows:
Sales
$
705,000
Cost of goods
sold
58,000
Gross margin
647,000
Selling and
administrative expenses
217,000
Net operating
income
430,000
Gain on sale of
equipment
6,000
Income before
taxes
436,000
Income taxes
174,400
Net income
$
261,600
Its balance sheet amounts at the
end of Years 1 and 2 are as follows:
Year 2
Year 1
Assets
Cash
$
205,000
$
85,700
Accounts
receivable
259,000
141,000
Inventory...