Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Question
Chapter 13, Problem 4R
To determine
Explain the opinion of stockholders with respect to the trends.
To determine
Determine the earnings per share after making the given changes.
To determine
Prepare a chart using the data table.
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Students have asked these similar questions
2
Tiger Audio declared and paid a cash dividend of $7,925 in the current year. Its comparative financial
statements, prepared at December 31, reported the following summarized information:
Current
Previous
Income Statement
$342,000 $281,000
175,650
166,350
63,600
6,400
96,350
28,905
Sales Revenue
Cost of Goods Sold
159,000
122,000
52,930
5,670
63,400
19,020
Gross Profit
Operating Expenses
Interest Expense
Income before Income Tax Expense
Income Tax Expense (30%)
Net Income
$ 67,445
$ 44,380
Balance Sheet
$ 72,520
32,900
49,000
151,000
$305,420
$ 45, 200
28,000
46,000
138, 200
Cash
Accounts Receivable, Net
Inventory
Property and Equipment, Net
Total Assets
$257,400
$ 39,000
4,800
101,900
145,700
39,400
120,320
$ 37,000
4,000
116, 200
157, 200
39,400
60,800
Accounts Payable
Income Tax Payable
Note Payable (long-term)
Total Liabilities
Common Stock (par $1)
Retained Earnings
Total Liabilities and Stockholders' Equity $305,420 $257,400
Your Task…
Using your assigned financial statements calculate the required ratios below
Indicate if the change from year to year is favorable or unfavorable.
All values should be accurate to at least two decimal places.
The expectation is to submit a professional report free of grammar and spelling errors and easy to read. Think of this as a menu you would be handing to a customer.
All calculations are to be represented.
Analysis of Profitability
Gross Profit Ratio
Operating Profit Ratio
Net Profit Ratio
Sales to Total Assets Ratio
Return on Total Assets
Return on Equity
Earnings Per Share
Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE. Write
your answers onthe space provided before each number.
1. Profitability ratios measure the ability of the company's assets and invested capital to
generate sales.
2. Čunent ratio is generally higher than quick ratio.
3. Using anothercompany as benchmark, the company with highernet profitmarginis more
profitable.
4. Accounts receivable turnover measures the number of days in the company's average
collections period.
5. Firancial statement analysis uses computational and analytical techniques to evaluate the
company's risks, performance, financial health, and future prospects with the objective
of making economic decisions.
- 6. Given equal gross profit margin, the company with the better operating income margin
has higher operating expenses as a percentage of sales.
7. Debt to equity ratio measures the percentage of assets financed by equity.
8. Gross profit margin provide an indication of…
Chapter 13 Solutions
Excel Applications for Accounting Principles
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