Reference no: EM131346558
The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement: Sales revenue $ 191,800 * $ 167,500 Cost of goods sold 112,200 101,100 Gross profit 79,600 66,400 Operating expenses and interest expense 56,000 53,000 Pretax income 23,600 13,400 Income tax 7,900 3,950 Net income $ 15,700 $ 9,450 Balance sheet: Cash $ 4,600 $ 6,600 Accounts receivable (net) 15,600 16,100 Inventory 41,100 33,900 Operational assets (net) 46,600 37,700 $ 107,900 $ 94,300 Current liabilities (no interest) $ 14,400 $ 15,400 Long-term liabilities (8% interest) 44,700 44,700 Common stock (par $5) 28,900 28,900 Retained earnings 19,900 5,300 $ 107,900 $ 94,300 The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement: Sales revenue $ 191,800 * $ 167,500 Cost of goods sold 112,200 101,100 Gross profit 79,600 66,400 Operating expenses and interest expense 56,000 53,000 Pretax income 23,600 13,400 Income tax 7,900 3,950 Net income $ 15,700 $ 9,450 Balance sheet: Cash $ 4,600 $ 6,600 Accounts receivable (net) 15,600 16,100 Inventory 41,100 33,900 Operational assets (net) 46,600 37,700 $ 107,900 $ 94,300 Current liabilities (no interest) $ 14,400 $ 15,400 Long-term liabilities (8% interest) 44,700 44,700 Common stock (par $5) 28,900 28,900 Retained earnings 19,900 5,300 $ 107,900 $ 94,300 *One-third was credit sales. b. What was the income tax rate? What percentage of total resources was invested in operational assets? e. Compute the debt-to-equity ratio? g. What was the return on assets? h. Compute the financial leverage percentage?
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Considering introducing healthier version
: Pisa? Pizza, a seller of frozen? pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $19 million per year. Assume customers..
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Considering introducing healthier version
: Pisa? Pizza, a seller of frozen? pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $19 million per year. Assume customers..
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Consider investing in portfolio of foreign currencies
: Identify and describe one reason why a MNC would consider investing in a portfolio of foreign currencies, instead of a single foreign currency. Support your reasoning with data from at least one current resource article.
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Policies have on the company cash conversion cycle
: Edison Inc. has annual sales of $36,500,000, or $100,000 a day on a 365-day basis. The firm's cost of goods sold is 75% of sales. On average, the company has $9,000,000 in inventory and $8,000,000 in accounts receivable. What effect would these polic..
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Compute the financial leverage percentage
: The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: 2015 2014 Income statement: Sales revenue $ 191,800 * $ 167,500 Cost of goods sold 112,200 101,100. Compute the debt-to-equit..
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Find expected dividend yield-expected capital gains yield
: TTC has been growing at a rate of 18% per year in recent years. This same growth rate is expected to last for another 2 years (g1 = g2 = 18%). What are its expected dividend yield at this time? What is the capital gains yield at this time? Find the e..
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Find expected dividend yield-expected capital gains yield
: TTC has been growing at a rate of 18% per year in recent years. This same growth rate is expected to last for another 2 years (g1 = g2 = 18%). What are its expected dividend yield at this time? What is the capital gains yield at this time? Find the e..
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What is the capital gains yield at this time
: TTC has been growing at a rate of 18% per year in recent years. This same growth rate is expected to last for another 2 years (g1 = g2 = 18%). What are its expected dividend yield at this time? What is the capital gains yield at this time? Find the e..
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Net present value of the decision to produce the chains
: A bicycle manufacturer currently produces 296,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $1.90 a chain. If the company pays tax at a rate of 35% and the opportunity..
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