### Compute the financial data for given year

Assignment Help Financial Accounting
##### Reference no: EM13859183

Problem 1:

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

 McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales \$7,370,000 \$5,601,200 Cost of goods sold 4,600,000 3,510,500 Gross margin 2,770,000 2,090,700 Selling and administrative expenses: Selling expenses 1,383.000 1,077,000 Administrative expenses 703,000 608,500 Total expenses 2.086.000 1.685.500 Net operating income 684.000 405,200 Interest expense 99,000 90.000 Net income before taxes \$ 585,000 \$ 315,200

Members of the company's board of directors are surprised to see that net income increased by only \$269,800 when sales increased by \$1.768,800.

Required:

1. Express each years income statement in common-size percentages. (Round your percentage answers to 1 decimal place

Problem 2:

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 500,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was \$0.50. The market value of the company's common stock at the end of the year was \$27. All of the company's sales are on account.
Weller Corporation
Comparative Balance Sheet
(dollars In thousands)

 Assets Current assets: This Yew Last Year Cash \$ 1,100 \$ 1,280 Accounts receivable, net 9,600 6,900 Inventory 13,400 12,300 Prepaid expenses 610 680 Total current assets 24,710 21,160 Property and equipment: Land 10,900 10,900 Buildings and equipment, net 48,910 36,290 Total property and equipment 59.810 47,190 Total assets \$84.520 \$68,350 Liabilities and Stockholders' Equity Current liabilities: Accounts payable \$20,400 \$ 18,600 Accrued liabilities 930 770 Notes payable, short term 290 290 Total current liabilities 21,620 19,660 Long-term liabilities: Bonds payable 9.000 9,000 Total liabilities 30,620 28,660 Stockholders' equity: Common stock 500 500 Additional paid-in capital MOO 4,000 Total paid-In capital 4,500 4,500 Retained earnings 49,400 35,190 Total stockholders' equity 53,900 39,690 Total liabilities and stockholders' equity \$84,520 \$68,350

Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)

 This Year Last Year Sales \$76,000 \$65,000 Cost of goods sold 34,000 40,000 Gross margin 42,000 25,000 Selling and administrative expenses: Selling expenses 10,600 10,700 Administrative expenses 6.400 6,400 Total selling and administrative expenses 17,000 17,100 Net operating income 25,000 7,900

 Interest expense 900 900 Net income before taxes 24.100 7.000 Income taxes 9.640 2,800 Net income 14.460 4,200 Dividends to common stockholders 250 250 Net income added to retained earnings 14,210 3,950 Beginning retained earnings 35,190 31,240 Ending retained earnings \$49,400 \$35,190

Required:

Compute the following financial data and ratios for this year

1. Working capital.

3. Acid - test ratio. (Round your answer to 2 decimal places.)

Problem 3:

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was \$0.50. The market value of the company's common stock at the end of the year was \$26. All of the company's sales are on account.

Weller Corporation
Comparative Balance Sheet
(dollars in thousands)

 Assets Current assets: ThIs Year Last Year Cash \$ 1,150 \$   1,350 Accounts receivable, net 10.000 7,100 Inventory 12,200 11,900 Prepaid expenses 670 520 Total current assets 24,020 20,870 Property and equipment: Land 9,900 9,900 Buildings and equipment, net 49,586 40,274 Total property and equipment 59,486 50,174 Total assets \$83,506 \$71,044 Liabilities and Stockholders' Equity Current liabilities: Accounts payable \$19,600 \$17,700 Accrued liabilities 960 880 Notes payable, shod term 260 260 Total current liabilities 20,820 18,840 Long-term liabilities: Bonds payable 9,600 9,600 Total liabilities 30,420 28,440 Stockholders' equity: Common stock 600 600 Additional paid-in capital 4,000 4,000 Total paid-in capital 4.600 4,600 Retained earnings 48,486 38,004 Total stockholders' equity 53,086 42,604 Total liabilities and stockholders' equity \$83,506 \$ 71,044 Weller Corporation Comparative Income Statement Reconciliation and (dollars In thousands) This Year Last Year Sales \$74,385 \$64,000 Cost of goods sold 37,355 34,000 Gross margin 37,030 30.000 Selling and administrative expenses: Selling expenses 10,900 10,500 Administrative expenses 7,200 6,600 Total selling and administrative expenses 18,100 17,100 Net operating income 18,930 12,900

 Interest expense 960 960 Net income before taxes 17,970 11,940 Income taxes 7,188 4,776 Net Income 10,782 7,164 Dividends to common stockholders 300 300 Net income added to retained earnings 10,482 6,864 Beginning retained earnings 38,004 31,140 Ending retained earnings \$48,486 \$38,004

Required:

Compute the following financial data for this year.

1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.)

2. Average collection period. (Use 365 days In a year. Round your Intermediate calculations and final answer to 2 decimal places.)

4. Average sale period. (Use 365 days In a year. Round your Intermediate calculations and final answer to 2 decimal places.)

5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.)

Problem 4:

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not Issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was \$.75. The market value of the company's common stock at the end of the year was \$28. All of the company's sales are on account.

Weller Corporation
Comparative Balance Sheet
(dollars In thousands)

 Assets Current assets: This Year Last Year Cash \$ 1,220 \$ 1,280 Accounts receivable, not 10,300 8,100 Inventory 13,000 12,100 Prepaid expenses 790 620 Total current assets 25,310 22.100 Property and equipment: Land 10,200 10,200 Buildings and equipment, net 41,718 41,209 Total property and equipment 51,918 51,409 Total assets \$77,228 \$73,509 Liabilities and Stockholders' Equity Current liabilities: Accounts payable \$19.000 \$ 18,600 Accrued liabilities 1,030 800 Notes payable, short term 0 250 Total current liabilities 20,030 19,650 Long-term liabilities: Bonds payable 9,600 9,600 Total liabilities 29,630 29,250 Stockholders' equity: Common stock 2,000 2,000 Additional paid•in capital 4,000 4,000 Total paid-in capital 6.000 6,000 Retained earnings 41,598 38,259 Total stockholders' equity 47,598 44,259 Total liabilities and stockholders' equity \$77,228 \$73,509

Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)

 This Year Last Year Sales \$67,000 \$64,000 Cost of goods sold 41,000 33,000 Gross margin 26,000 31,000 Selling and administrative expenses: Selling expenses 11,500 10,700 Administrative expenses 7,100 6,600 Total selling and administrative expenses 18,600 17,300 Net operating income 7,400 13,700 Interest expense 960 960 Net income before taxes 6.440 12,740 Income taxes 2.576 5,096 Net Income 3,864 7,644 Dividends to common stockholders 525 525 Net income added to retained earnings 3,339 7,119 Beginning retained earnings 38,259 31,140 Ending retained earnings \$41,598 \$38,259 Required: Compute the following financial ratios for this year:

Required:
Compute the following financial ratios for this year:

1. Times Interest earned ratio. (Round your answer to 1 decimal place.)

Problem 5:

Comparative financial statements for Weller Corporation, a merchandising company. for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 830,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%. and the dividend per share of common stock was \$0.40. The market value of the company's common stock at the end of the year was \$19.50. All of the company's sales are on account.

Weller Corporation
Comparative Balance Sheet
(dollars in thousands)

 Assets Current assets: This Year Last Year Cash \$ 5,078 \$ 5,190 Accounts receivable, net 12,600 9,250 Inventory 9,850 8,320 Prepaid expenses 1,830 2,160 Total current assets 29,358 24,920 Property and equipment: Land 6,300 6,300 Buildings and equipment, net 19,500 19,300 Total property and equipment 25,800 25,600 Total assets \$55,158 \$50,520 Liabilities and Stockholders' Equity Current liabilities: Accounts payable \$ 9,800 \$ 8.450 Accrued liabilities 660 850 Notes payable, short term 330 330 Total current liabilities 10,790 9,630 Long-term liabilities: Bonds payable 8,750 8,750 Total liabilities 19,540 18,380 Stockholders' equity: Common stock 830 830 Additional paid-in capital 4,350 4,350 Total pald-in capital 5,180 5,180 Retained earnings 30,438 26,960 Total stockholders' equity 35,618 32,140 Total liabilities and stockholders' equity \$55,158 \$50,520

Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)

 This Year Last Year Sales \$82,000 \$77,000 Cost of goods sold 53,500 49,500 Gross margin 28.500 27.500 Selling and administrative expenses: Selling expenses 8,800 8,300 Administrative expenses 12,300 11.300 Total selling and administrative expenses 21,100 19,600 Net operating income 7,400 7,900 Interest expense 1.050 1,050 Net income before taxes 6,350 6,850 Income taxes 2.540 2,740 Net income 3,810 4,110 Dividends to common stockholders 332 332 Net income added to retained earnings 3,478 3,778 Beginning retained earnings 26,960 23,182 Ending retained earnings \$30,438 \$26,960

Required:
Compute the following financial data for this year:
1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
3. Retum on total assets. (Round your percentage answer to 1 decimal place (I.e., 0.1234 should be entered as 12.3).)
4. Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Problem 6:

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 850.000 shares of common stock were outstanding. The interest rate on the bond payable was 12%. the income lax rate was 40%, and the dividend per share of common stock was \$0.40. The market value of the company's common stock at the end of the year was \$20.50. All of the company's sales are on account.
Weller Corporation
Comparative Balance Sheet
(dollars in thousands)

 Assets Current assets: This Year Last Year Cash \$ 1,810 \$         710 Accounts receivable, net 12,800 10,000 Inventory 9,950 8,400 Prepaid expenses 1,850 2,200 Total current assets 26,410 21,310 Property and equipment: Land 6,500 6,500 Buildings and equipment, net 19,700 19,500 Total property and equipment 26.200 26,000 Total assets \$52,610 \$47,310 Liabilities and Stockholders' Equity Current liabilities: Accounts payable \$10,000 \$ 8,550 Accrued liabilities 700 950 Notes payable, short term 350 350 Total current liabilities 11,050 9.850 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 16,050 14,850 Stockholders' equity: Common stock 850 850 Additional paid-in capital 4,450 4,450 Total paid-in capital 5,300 5,300 Retained earnings 31,260 27,160 Total stockholders' equity 36.560 32,460 Total liabilities and stockholders' equity \$52,610 \$47,310 Weiler Corporation Comparative Income Statement Reconciliation and (dollars In thousands) This Year Last Year Sales \$84,000 \$79,000 Cost of goods sold 54,500 50,500 Gross margin 29,500 28,503 Selling and administrative expenses: Selling expenses 9,000 8,500 Administrative expenses 12,500 11,500 Total selling and administrative expenses 21,500 20,000 Net operating income 8,000 8,500 Interest expense 600 600 Net income before taxes 7.400 7.900 Income taxes 2,960 3,160 Net income 4,440 4,740 Dividends to common stockholders 340 340 Net income added to retained earnings 4,100 4,400 Beginning retained earnings 27,160 22,760 Ending retained earnings \$31.280 \$27,160

Required:
Compute the following financial data for this year.
2. Pdce-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal niaces.)
3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.)
5. Book value per share. (Round your answer to 2 decimal places.)

Problem 7:

Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales have been reported as follows over the last five years (Year 5 is the most recent year):

 Year 1 Year 2 Year 3 Year 4 Year 5 Sales \$4,556,090 \$4,866,830 \$5,103,410 \$5,434,060 \$5,721,240 Cash \$       97,532 \$      104,951 \$      92,470 \$      90.966 \$      67,724 Accounts receivable, net 416.455 425.820 437,223 507,915 577,020 Inventory 806,723 869,850 834,585 897,619 898,997 Total current assets \$1,320,710 \$1.400,621 \$1,364,278 \$1.496,500 \$1,543,741 Current liabilities \$     314,974 \$ 349,284 \$ 337,560 \$ 335,088 \$ 396,570

Required:

1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year.
(Round your percentage answers to 1 decimal place (i.e.. 0.1234 should be entered as 12.3).)

Problem 8:

In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Delta Company.

1.     Declared a cash dividend.                                                            Current ratio

2.     Sold inventory on account at cost.                                               Acid-test ratio

3.     Issued bonds with an interest rate of 8%. The company's return on

assets is 10%.                                                                                                            Return on equity

4.     Net Income decreased by 10% between last year and this year. Long-

term debt remained unchanged.                                                       Times interest earned

5.     Paid a previously declared cash dividend.                                    Current ratio

6.     The market price of the company's common stock dropped from

\$24.50 to \$20.00. The dividend paid per share remained unchanged. Dividend payout ratio

7.     Obsolete inventory totaling \$100,000 was written off as a loss.     Inventory turnover ratio

8.     Sold inventory for cash at a profit.                                              Debt-to-equity ratio

9.     Changed customer credit terms from 2110, n/30 to 2/15. n/30 to

comply with a change in industry practice.                                    Accounts receivable turnover ratio

10.  Issued a stock dividend to common stockholders.                       Book value per share

11.  The market price of the company's common stock increased from

\$24.50 to \$30.00.                                                                                                       Book value per share

12.  Paid \$40,000 on accounts payable.                                             Working capital

13.  Issued a stock dividend to common stockholders.                       Earnings per share

14.  Paid accounts payable.                                             Debt-to-equity ratio

15.  Purchased inventory on account.                                                 Acid-test ratio

16.  Wrote off an uncollectible account against the Allowance for Bad Debts.                                                                                                                         Current ratio

17.  The market price of the company's common stock Increased from

\$24.50 to \$30.00. Earnings per share remained unchanged.            Price-earnings ratio

18.  The market price of the company's common stock Increased from

\$24.50 to \$30.00. The dividend paid per share remained unchanged. Dividend yield ratio

Required:

Indicate the effect that each business transaction or event would have on the ratio listed opposite to it. State the effect in terms of increase, decrease, or no effect on the ratio involved. In all cases. assume that the current assets exceed the current liabilities both before and after the event or transaction.

### Previous Q& A

#### Calculate the proposed projects internal rate of return

Calculate the proposed project's internal rate of return (IRR). Explain the rationale for using the IRR to evaluate capital investment projects. Could the IRR for this project be different for SRC than for another customer?

#### How does this focus differ from allopathic medicine

If CAM therapies focus on wellness, how does this focus differ from allopathic medicine? Proponents of CAM believe that the body is self-healing. What is your view regarding the same? Give an example from the course textbook or your experience to ..

#### Calculate the amount of koh solution required per hour

The amount of KOH solution required per hour. the adiabatic temperature of the reaction (no cooling is used

#### Describe the immigration forms and documents

For the first part of your post, describe the immigration forms and documents needed to apply for a job. Research and review an I-9 Form and describe the documents that you would produce to establish legal U.S. status

#### Describe stages of motor development for young children

Describe stages of motor development for young children

#### Identify ways to make performance evaluations more effective

Identify ways to make performance evaluations more effective. Do you believe one of your suggestions is of higher priority than the others? Explain

#### What would justify a decision by cookie and coffee creations

What would justify a decision by Cookie & Coffee Creations Inc. to buy the additional equipment? What alternatives are thee instead of bank financing?

#### Describe the appraisal process and how it should work

Briefly describe the appraisal process and how it should work. What are some major factors that distort performance appraisals? How can the appraisal process motivate staff to do a good job

#### How the strategy would be applied to your marketing plan

Why you chose the strategy for that long-term care organization. Which of the three marketing strategies would best fit the goals of your chosen HCO. How the strategy would be applied to your marketing plan

#### Transactions for the joel berges company

Problem 1: Selected transactions for the Joel Berges Company are presented in journal form below.

### Similar Q& A

#### Find sources of revenue tenet healthcare

Tenet Healthcare and HCA Holdings Inc. are major competitors in the healthcare industry.

#### Find the expected return on a stock

Evaluate the expected return on a stock with a beta of 0.8, given a risk free rate of 3.5% and an expected market return of 15.6%

#### Evaluate the responsibilities of the contracting officer

Evaluate the responsibilities of the contracting officer during the proposal evaluation process

#### Part 1 sharemarket assignment sheet- select a share

part 1 sharemarket assignment sheet- select a share portfolio consisting of one company from each group listed above.

#### Determine whether computer villages should discontinue

Determine whether Computer Villages should discontinue the furniture line and the financial benefit (cost) of dropping it.

#### How it affects gain or loss recognized on that asset

How it affects gain or loss recognized on that asset and, consequently, taxes. Are there any economic, social, revenue, or political implications for these adjustments to the basis?

#### Find out which case is fifo and which is lifo

Find out which case is FIFO and which is LIFO. State which case would result in the higher inventory value on the balance sheet and indicate why.

#### What are the basic components of a financial plan

What are the basic components of a financial plan and why is it necessary to designate a plug in a financial planning model?

#### Client consent disclose the error to the irs

If a CPA knows that the client has a material error on a prior year’s return, he should not, without the client’s consent, disclose the error to the IRS.

#### Cost of paving parking area for employees and customers

Identify each of the following expenditures as chargeable to Land, Land Improvements, Buildings, Machinery and Equipment, or other account? Cost of paving parking area for employees and customers. Insurance during construction of building. Interest i..

#### Prepare the journal entry to record interest expense

Prepare the journal entry to record interest expense and bond premium amortization on December 31, 2012, assuming no previous accrual of interest.

#### Sawyer corporation issued 200000000 face value bonds on 1st

sawyer corporation issued 200000000 face value bonds on 1st july 2013. the bonds are a 20 year issue and carry a coupon