Required:1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearestwhole percent. Percentages may not add exactly due to rounding.)Statement of earnings:Sales revenueCost of salesGross marginOperating expenses and interest expenseEarnings before income taxesIncome tax expenseNet earningsStatement of financial position:CashAccounts receivable (net)InventoryProperty, plant, and equipment (net)Total assetsCurrent liabilitiesLong-term liabilitiesCommon sharesRetained earningsTotal liabilities and shareholders' equityComponentPercentages Year2%do%0 %de%0 %%0 %do do do do do%%%%0 %%%%%0 % The comparative financial statements prepared at December 31, year 2, for Goldfish Company showed the following summarized data:Statement of EarningsSales revenueCost of salesGross marginOperating expenses and interest expenseEarnings before income taxesIncome tax expenseNet earningsStatement of Financial PositionCashAccounts receivable (net)InventoryProperty, plant, and equipment (net)Current liabilities (no interest)Non-current liabilities (10% interest)Common shares (6,000 shares)Retained earningstYear 2$379,790*321,70058,09039, 22018,8706,690$ 12,180$ 4,17015,99046,05027,430$ 93,640Year 1$320,000270,00050,00035,00015,0005,100$ 9,900$ 8,20019,00040,00023,000$ 90,200$ 15,350$ 18,50036,81035,90024,00024,00017,48011,800$ 93,640 $ 90,200*One-third was credit sales.+During Year 2, cash dividends amounting to $6,500 were declared and paid.

Component Percentage is a method of Financial Statement Analysis under which we can easily analyze…

Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.)

Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 32MCQ

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Required: (a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years.
Required: 1. Complete the following columns for each item in the comparative financial statements (Negative answers shoul be indicated by a minus sign. Round percentage answers to 2 decimal places, i.e., 0.1243 should be entered as 12.43.): Increase (Decrease) Year 2 over Year 1 Amount Percentage Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings $ 45,770 38,650 7,120 4,020 3,100 1,050 $ 2,050 Statement of financial position: Cash (4,720) Accounts receivable (net) (4,220) Inventory 6,200 Property, plant, and equipment (net) 6,380 $ 3,640 Current liabilities (3,840) Long-term debt 3,530 Common shares 0 Retained earnings 3,950 $ 3,640
Given the profit loss (income statement) and balance sheet for Sam’sSandwich Delivery (Table 4–8), answer the following:a. Calculate the current and quick ratios.b. Using the inventory figure on the balance sheet as average inventory, calculatethe inventory turnover ratio.c. Calculate the debt-to-equity ratio, debt-to-total-asset ratio, and operatingprofit margin ratio.d. Perform a vertical analysis of the income statement.e. Perform a vertical analysis of the balance sheet.f. Based on your analysis, would you consider investing in Sam’s SandwichDelivery?
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