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HOMEWORK WEEK 8 Use the following information to construct an income statement Interest $25,000 Sales $950,000 Income tax rate 25% Selling and...

This question was answered on Jun 02, 2013. View the Answer
Use the following information to construct an income statement
Interest $25,000
Sales $950,000
Income tax rate 25%
Selling and marketing expense $160,000
General and administrative expenses $200,000
Gross profit $550,000
Depreciation $30,000
Cost of goods sold $400,000

Use your knowledge of balance sheets and common –size statements to fill in the missing dollar amounts.
Assets
Cash $25,000 3.4%
Account receivable $125,000 _______
Inventory _______ 27.1%
Total current assets $350,000 ________
Gross plant and equipment _______ 95.0%
Less: accumulated depreciation $313,000 42.5%
Net plant and equipment ________ ________
Total assets $737,000 100.0%




Use your knowledge to fill in the missing amounts.
Assets
Cash $50,000
Accounts receivable 80,000
Inventory 100,000
Total current assets ___________
Gross plant and equipment ___________
Less accumulated depreciation 130,000
Net plant and equipment 600,000
Total assets _______


The Dayco Manufacturing Company had the following financial statement results for last year. Net sales were $1.2 million with net income $90,000. Total assets at year end amounted to $900,000
a. Calculate Dayco’s assets turnover ratio and its profit margin.
b. Show how the two ratios in Part (a) can be used to determine Dayco’s rate of return on assets.
c. Dayco operates industry average ratios are these: returns on assets 11 percent; asset turnover: 2.5 percent times; Net profit margin 3.6 percent. Compare Dayco’s performance against industry averages.











Following are selected financial data in thousands of dollars for the Hunter Corporation.
2012 2011

Current assets $500 $ 400
Fixed assets, net 700 600
Total asset 1,200 1,000
Current liabilities 300 200
Long-term debt 200 200
Common equity 700 600
Total liabilities and equity 1,200 1,000
Net sales 1,500 1,200
Total expenses -1,390 -1,100
Net income 110 100



HOMEWORK WEEK 8 Use the following information to construct an income statement Interest $25,000 Sales $950,000 Income tax rate 25% Selling and marketing expense $160,000 General and administrative expenses $200,000 Gross profit $550,000 Depreciation $30,000 Cost of goods sold $400,000 Use your knowledge of balance sheets and common –size statements to fill in the missing dollar amounts. Assets Cash $25,000 3.4% Account receivable $125,000 _______ Inventory _______ 27.1% Total current assets $350,000 ________ Gross plant and equipment _______ 95.0% Less: accumulated depreciation $313,000 42.5% Net plant and equipment ________ ________ Total assets $737,000 100.0% Use your knowledge to fill in the missing amounts. Assets Cash $50,000 Accounts receivable 80,000 Inventory 100,000 Total current assets ___________ Gross plant and equipment ___________ Less accumulated depreciation 130,000 Net plant and equipment 600,000 Total assets _______ The Dayco Manufacturing Company had the following financial statement results for last year. Net sales were $1.2 million with net income $90,000. Total assets at year end amounted to $900,000 a. Calculate Dayco’s assets turnover ratio and its profit margin. b. Show how the two ratios in Part (a) can be used to determine Dayco’s rate of return on assets. c. Dayco operates industry average ratios are these: returns on assets 11 percent; asset turnover: 2.5 percent times; Net profit margin 3.6 percent. Compare Dayco’s performance against industry averages.
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HOMEWORK WEEK 8 Following are selected financial data in thousands of dollars for the Hunter Corporation. 2012 2011 Current assets $500 $ 400 Fixed assets, net 700 600 Total asset 1,200 1,000 Current liabilities 300 200 Long-term debt 200 200 Common equity 700 600 Total liabilities and equity 1,200 1,000 Net sales 1,500 1,200 Total expenses -1,390 -1,100 Net income 110 100
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HOMEWORK WEEK 8
Use the following information to construct an income statement
Interest
$25,000
Sales
$950,000
Income tax rate
25%
Selling and marketing expense $160,000
General and administrative...

This question was asked on Jun 01, 2013 and answered on Jun 02, 2013.

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