Maggie's Muffins, Inc., generated $2,000,000 in sales during
2015, and its year-end total assets were $1,300,000....
Maggie's Muffins, Inc., generated $2,000,000 in sales during
2015, and its year-end total assets were $1,300,000. Also, at
year-end 2015, current liabilities were $1,000,000, consisting of
$300,000 of notes payable, $500,000 of accounts payable, and
$200,000 of accruals. Looking ahead to 2016, the company estimates
that its assets must increase at the same rate as sales, its
spontaneous liabilities will increase at the same rate as sales,
its profit margin will be 4%, and its payout ratio will be 50%....
Selected current year-end financial statements of Cabot
Corporation follow. (All sales were on credit; selected balance...
Selected current year-end financial statements of Cabot
Corporation follow. (All sales were on credit; selected balance
sheet amounts at December 31 of the prior year were
inventory, $47,900; total assets, $179,400; common stock, $88,000;
and retained earnings, $39,350.)
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$
453,600
Cost of goods sold
296,950
Gross profit
156,650
Operating expenses
98,900
Interest expense
5,000
Income before taxes
52,750
Income tax expense
21,250
Net income
$
31,500
CABOT CORPORATION
Balance...
Assume that the financial statements for Division 1 of the ABC
Comapny showed the following for...
Assume that the financial statements for Division 1 of the ABC
Comapny showed the following for last year and at the last year end
(in thousands).
Sales: $10,000,000
Operating income 3,000,000
Total assets 20,000,000
Current Liabilities 2,000,000
Management'srequired rate of return is 10%
The Company's average weighted cost of capital is $17
The Company's effective income tax rate is 30%
Questions:
a. what is the division's profit margin?
b. what is the division Return on Investment (ROI)?
c. what is...
Selected year-end financial statements of Cabot Corporation
follow. (All sales were on credit; selected balance sheet...
Selected year-end financial statements of Cabot Corporation
follow. (All sales were on credit; selected balance sheet amounts
at December 31, 2016, were inventory, $55,900; total assets,
$169,400; common stock, $86,000; and retained earnings,
$47,625.)
CABOT CORPORATION
Income Statement
For Year Ended December 31, 2017
Sales
$
452,600
Cost of goods sold
298,450
Gross profit
154,150
Operating expenses
98,800
Interest expense
4,400
Income before taxes
50,950
Income taxes
20,525
Net income
$
30,425
CABOT CORPORATION
Balance Sheet
December 31, 2017
Assets...
Given the financial statements for Jones Corporation and Smith
Corporation: JONES CORPORATION Current Assets Liabilities Cash...
Given the financial statements for Jones Corporation and Smith
Corporation: JONES CORPORATION Current Assets Liabilities Cash $
29,400 Accounts payable $ 103,000 Accounts receivable 88,300 Bonds
payable (long term) 80,100 Inventory 54,500 Long-Term Assets
Stockholders' Equity Gross fixed assets $ 508,000 Common stock $
150,000 Less: Accumulated depreciation 156,800 Paid-in capital
70,000 Net fixed assets* 351,200 Retained earnings 120,300 Total
assets $ 523,400 Total liabilities and equity $ 523,400 Sales (on
credit) $ 1,845,000 Cost of goods sold 757,000 Gross...
Asset Turnover
The Home Depot reported the following data (in millions) in its
recent financial statements:...
Asset Turnover
The Home Depot reported the following data (in millions) in its
recent financial statements:
Year 2
Year 1
Sales
$108,203
$100,904
Total assets at the end of the year
44,003
44,529
Total assets at the beginning of the year
44,529
42,966
a. Determine the asset turnover for The Home
Depot for Year 2 and Year 1. Round to two decimal
places.
Year 2:
fill in the blank 1
Year 1:
fill in the blank 2
b. What do...
Selected year-end financial statements of Cabot Corporation
follow. (All sales were on credit; selected balance sheet...
Selected year-end financial statements of Cabot Corporation
follow. (All sales were on credit; selected balance sheet amounts
at December 31, 2016, were inventory, $55,900; total assets,
$169,400; common stock, $86,000; and retained earnings,
$47,625.)
CABOT CORPORATION
Income Statement
For Year Ended December 31, 2017
Sales
$
452,600
Cost of goods sold
298,450
Gross profit
154,150
Operating expenses
98,800
Interest expense
4,400
Income before taxes
50,950
Income taxes
20,525
Net income
$
30,425
CABOT CORPORATION
Balance Sheet
December 31, 2017
Assets...
Problem 17-4A Calculation of financial statement ratios LO
P3
Selected year-end financial statements of Cabot Corporation...
Problem 17-4A Calculation of financial statement ratios LO
P3
Selected year-end financial statements of Cabot Corporation
follow. (All sales were on credit; selected balance sheet amounts
at December 31, 2016, were inventory, $56,900; total assets,
$249,400; common stock, $81,000; and retained earnings,
$51,308.)
CABOT CORPORATION
Income Statement
For Year Ended December 31, 2017
Sales
$
453,600
Cost of goods sold
298,350
Gross profit
155,250
Operating expenses
99,000
Interest expense
4,100
Income before taxes
52,150
Income taxes
21,008
Net income
$...
Deflorio Corporation’s inventory at the end of Year 2 was
$184,000 and its inventory at the...
Deflorio Corporation’s inventory at the end of Year 2 was
$184,000 and its inventory at the end of Year 1 was $172,000. The
company’s total assets at the end of Year 2 were $1,566,000 and its
total assets at the end of Year 1 were $1,462,000. Sales amounted
to $1,610,000 in Year 2.The company’s total asset turnover for Year
2 is closest to:
LaPorta Company and Lott Corporation, two corporations of
roughly the same size, are both involved in...
LaPorta Company and Lott Corporation, two corporations of
roughly the same size, are both involved in the manufacture of
in-line skates. Each company depreciates its plant assets using the
straight-line approach. An investigation of their financial
statements reveals the following information. LaPorta Co. Lott
Corp. Net income $800,000 $1,000,000 Sales revenue 1,300,000
1,180,000 Average total assets 2,500,000 2,000,000 Average plant
assets 1,800,000 1,000,000 (a) For each company, calculate the
asset turnover. (Round answers to 2 decimal places, e.g. 0.60.)
LaPorta...