Review the financial statements for Jones Inc. and the
comparative financial ratios for the year-end review....
Review the financial statements for Jones Inc. and the
comparative financial ratios for the year-end review. Enter your
calculations and written analysis directly into the template, and
show or explain your work where appropriate.
Problem 1. Calculate the firm's 2015 financial ratios for
liquidity, activity (asset management), leverage (debt), and
profitability.
Problem 2. Analyze the firm's performance from both time-series
and cross-sectional points of view using the key financial ratios
provided in the template.
Problems 1 and
2
BALANCE SHEET...
Exercise 12-81
Profitability Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in...
Exercise 12-81
Profitability Ratios
Financial statements for Steele Inc. follow.
Steele
Inc.
Consolidated
Income Statements
(in
thousands except per share amounts)
2019
2018
2017
Net sales
$7,245,088
$6,944,296
$6,149,218
Cost of goods sold
(5,286,253)
(4,953,556)
(4,355,675)
Gross margin
$1,958,835
$1,990,740
$1,793,543
General and
administrative expenses
(1,259,896)
(1,202,042)
(1,080,843)
Special and
nonrecurring items
2,617
0
0
Operating income
$701,556
$788,698
$712,700
Interest expense
(63,685)
(62,398)
(63,927)
Other income
7,308
10,080
11,529
Gain on sale of
investments
0
9,117
0
Income before...
?(Evaluating current and pro forma
profitability?)
The annual sales for Salco Inc. were $4.45
million last...
?(Evaluating current and pro forma
profitability?)
The annual sales for Salco Inc. were $4.45
million last year. All sales are on credit. The? firm's
end-of-year balance sheet and income statement were in the popup?
window:
.
Calculate? Salco's total asset? turnover, operating profit?
margin, and operating return on assets.
b. Salco plans to renovate one of its? plants,
which will require an added investment in plant and equipment of
$1.07 million. The firm will maintain its present debt ratio of...
Problem 12-6B Use ratios to analyze risk and profitability
(LO12-3, 12-4)
[The following information applies to...
Problem 12-6B Use ratios to analyze risk and profitability
(LO12-3, 12-4)
[The following information applies to the questions
displayed below.]
Income statement and balance sheet data for The Athletic Attic are
provided below.
THE ATHLETIC ATTIC
Income Statements
For the years ended December 31
2022
2021
Net sales
$
10,680,000
$
9,100,000
Cost of goods sold
6,980,000
5,600,000
Gross profit
3,700,000
3,500,000
Expenses:
Operating expenses
1,620,000
1,570,000
Depreciation expense
200,000
200,000
Interest expense
42,000
42,000
Income tax expense
424,000
370,000...
he DuPont equation shows the relationships among asset
management, debt management, and
-(Select-liquidity,market,profitability) of Item 1...
he DuPont equation shows the relationships among asset
management, debt management, and
-(Select-liquidity,market,profitability) of Item 1
ratios. Management can use the DuPont equation to analyze ways of
improving the firm's performance. Its equation is:
Ratio analysis is important to understand and interpret
financial statements; however, sound financial analysis involves
more than just calculating and interpreting numbers.
(-Select one-Quantitative,Qualitative,Foreign) of
Item 1 factors also need to be considered.
Quantitative Problem: Rosnan Industries' 2019
and 2018 balance sheets and income statements are...
Compute Profit margin, current ratio, debt to asset, and asset
turnover ratios.
Balance Sheet
As on...
Compute Profit margin, current ratio, debt to asset, and asset
turnover ratios.
Balance Sheet
As on April 30
$
$
ASSETS
Lanscaping Equipment
15,000
Cash
55,300
Prepaid Insurance
3,300
Landscaping supplies
300
Accounts Receivable
600
Total Assets
74,500
Equity and Liabilities
Equity
Common Stock
50,000
Retained Earnings
20,750
Total Equity
70,750
Liabilities
Accounts Payable
3,750
Total Equity and Liabilities
74,500
Problem 12-5A Calculate profitability ratios (LO12-4)
The following income statement and balance sheets for Virtual
Gaming...
Problem 12-5A Calculate profitability ratios (LO12-4)
The following income statement and balance sheets for Virtual
Gaming Systems are provided.
VIRTUAL GAMING SYSTEMS
Income Statement
For the year ended December 31, 2021
Net sales
$
3,076,000
Cost of goods sold
1,958,000
Gross profit
1,118,000
Expenses:
Operating expenses
$
866,000
Depreciation expense
27,000
Loss on sale of land
8,800
Interest expense
19,000
Income tax expense
56,000
Total expenses
976,800
Net income
$
141,200
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2021
2020...
Required information
Problem 12-6B Use ratios to analyze risk and profitability
(LO12-3, 12-4)
[The following information...
Required information
Problem 12-6B Use ratios to analyze risk and profitability
(LO12-3, 12-4)
[The following information applies to the questions
displayed below.]
Income statement and balance sheet data for The Athletic Attic are
provided below.
THE ATHLETIC ATTIC
Income Statements
For the years ended December 31
2022
2021
Net sales
$
12,080,000
$
10,600,000
Cost of goods sold
7,880,000
6,600,000
Gross profit
4,200,000
4,000,000
Expenses:
Operating expenses
1,720,000
1,670,000
Depreciation expense
200,000
200,000
Interest expense
52,000
52,000
Income tax expense...
Ratios Analyzing Firm Profitability
The following information is available for Crest Company:
Annual Data
2013
2012...
Ratios Analyzing Firm Profitability
The following information is available for Crest Company:
Annual Data
2013
2012
Sales revenue
$6,800,000
$6,000,000
Cost of goods sold
3,806,400
3,720,000
Net income
288,800
264,000
Year-End Data
Dec. 31, 2013
Dec. 31, 2012
Total assets
$2,880,000
$2,360,000
Common stockholders' equity
1,888,000
1,800,000
Calculate the following ratios for 2013:
Round answers to one decimal place, unless otherwise
noted.
a. Gross profit percentage
Answer%
b. Return on sales
Answer%
c. Asset turnover (Round answer to two decimal...