x
Info
x
Warning
x
Danger
 / 
 / 
 / 
Ex. 193 The following information was taken from the financial statements

Question : Ex. 193 The following information was taken from the financial statements : 1312011

 
Ex. 193

The following information was taken from the financial statements of Lawson Company:

2013                                                       2012

Gross profit on sales...................................$900,000$840,000

Income before income taxes.............................280,000230,000

Net income..........................................240,000216,000

Net income as a percentage of net sales.....................8%9%

 

Instructions

(a)Compute the net sales for each year.

(b)Compute the cost of goods sold in dollars and as a percentage of net sales for each year.

(c)Compute operating expenses in dollars and as a percentage of net sales for each year. (Income taxes are not operating expenses).

 

Ex. 194

Selected financial statement data for Moor Company are presented below.

December 31, 2013December 31, 2012

Cash$  40,000$30,000

Short-term investments25,00018,000

Receivables (net)100,00080,000

Inventories85,00065,000

Total current liabilities100,00090,000

 

Ex. 194(Cont.)

 

During 2013, net sales were $950,000, and cost of goods sold was $775,000.

 

Instructions

Compute the following ratios at December 31, 2013:

(a)Current.

(b)Acid-test.

(c)Receivables turnover.

(d)Inventory turnover.

 

Ex. 195

Selected information from the comparative financial statements of Fava Company for the year ended December 31, appears below:

2013                                       2012

Accounts receivable (net)$   180,000$200,000

Inventory140,000160,000

Total assets1,200,000800,000

Current liabilities140,000110,000

Long-term debt400,000300,000

Net credit sales1,330,000700,000

Cost of goods sold900,000530,000

Interest expense50,00025,000

Income tax expense60,00029,000

Net income150,00085,000

 

Instructions

Answer the following questions relating to the year ended December 31, 2013. Show computations.

1.Inventory turnover for 2013 is __________.

2.Times interest earned in 2013 is __________.

3.The debt to total assets ratio for 2013 is __________.

4.Receivables turnover for 2013 is __________.

5.Return on assets for 2013 is __________.

 

 

 

Solution
5 (1 Ratings )

Solved
Economics 1 Year Ago 13 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
119307 Economics Questions Answered!
Post a Question