Define financial statement construction via ratios

Assignment Help Financial Accounting
Reference no: EM13491742

Financial statement construction via ratios. Incomplete financial statements of Lock Box, Inc., are presented below.

LOCK BOX, INC.

Income Statement

For the Year Ended December 31, 19X3

Sales

$ ?

Cost of goods sold

?

Gross profit

$15,000,000

Operating expenses & interest

?

Income before tax

$ ?

Income taxes, 40%

?

Net income

$ ?

 

LOCK BOX, INC.

Balance Sheet

December 31, 19X3

Assets

 

Cash

Accounts receivable

Inventory

Property, plant, &. equipment

     Total assets

$ ?

?

?

8,000,000

$24,000,000

Liabilities & Stockholders' Equity

 

Accounts payable

Notes payable (short-term)

Bonds payable

Common stock

Retained earnings

     Total liabilities & stockholders' equity

$ ?

600,000 4,600,000

2,000,000

?

$24,000,000

 

Further information:

  1. Cost of goods sold is 60% of sales. All sales are on account.
  2. The company's beginning inventory is $5 million; inventory turnover is 4.
  3. The debt to total assets ratio is 70%.
  4. The profit margin on sales is 6%.
  5. The firm's accounts receivable turnover is 5. Receivables increased by $400,000 during the year.

 

Reference no: EM13491742

Questions Cloud

Determine the final volume of the cube and its uncertainty : a cube made of wood has sides 15.20 cm in length with an uncertainty of 0.05 cm. What is the final volume of the cube and its uncertainty
Define what is the ph of the solution : 0.65 of sodium hydroxide (NaOH) pellets are dissolved in water to make 2.5L of solution. What is the pH of this solution
How long will it be before they reach each other : Two locomotives approach each other on parallel tracks. Each has a speed of v = 95 km/h with respect to the ground. how long will it be before they reach each other
Explain the sources for ultraviolet radiation : Describe the difference between the following and list any particular advantage possessed by one over the other a)hydrogen and deuterium discharge lamps as sources for ultraviolet radiation
Define financial statement construction via ratios : Financial statement construction via ratios. Incomplete financial statements of Lock Box, Inc., are presented below.
Profitability ratios, trading on the equity : Compute the profit margin on sales and the rates of return on assets and common stockholders' equity, rounding calculations to two decimal places.
Computation and evaluation of activity ratios : Compute the accounts receivable and inventory turnover ratios for 19X5. Alaska rounds all calculations to two decimal places.
Calculate the speed of her shadow on the level ground : When the Sun is directly overhead, a hawk dives toward the ground with a constant velocity of 5.70 m/s at 55.0° below the horizontal
How to compute the enthalpy of combustion in kj/mol : Liquid butane C4H10 , the fuel used in many disposable lighters, has delta Hfinal=-147.5 kj and a density of 0.579 g/ml . Use Hess's law to calculate the enthalpy of combustion in kJ/mol.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Computation of free cash flow

Computation of Free Cash Flow

  Explain how the double-declining-balance method is computed

Explain how the double-declining-balance method is computed. Provide an example of how this method could be used on the new delivery truck purchased for $300,000 to be used for 4 years with a salvage value of $5,000 for year one only.

  If company is optimistic about its china venture and

if company is optimistic about its china venture and anticipates continued investment and growth are restrictions on

  A breakdown in cost centre format of the budget

A breakdown in cost centre format of the budget and a cost based risk assessment of the tender budget, including where the risk allocation would be made.

  Aldos t-shirt shop only has three costs t-shirt cost rent

aldos t-shirt shop only has three costs t-shirt cost rent cost on the shop and utilities cost.aldos sells the t-shirt

  Tarass inc is an accrual-method calendar-year corporation

tarass inc. is an accrual-method calendar-year corporation. tarass inc. did not qualify for the domestic production

  Explain how does the fourth amendment work in the workplace

But most fraud takes place at the workplace. Explain how does the fourth amendment work in the workplace? Does the employee have any protection from it?

  Material yr has fluctuated in price over period 10th april

material yr has fluctuated in price over period 10th april 2013 and the main accountant is unsure what price to cost

  Equivalent units for conversion costs

Calculation of the equivalent units for conversion costs in process costing and What were the equivalent units for conversion costs in the Lubricating Department for October

  Purpose an analysis - buy bindings and leave facilities idle

X-Perience's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $1,800 of fixed overhead. Purpose an analysis to show whether X-Perience should make or buy the bindings.

  Illustrate what would be change in miller operating profits

Assume that Miller is operating at full capacity. If Miller were to accept Brisbois’ offer, illustrate what would be the change in Miller’s operating profits?

  Journalize the transactions and the adjusting entries

Journalize the transactions and the adjusting entries and the double-declining-balance method of depreciation is used.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd