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Use the following information to constru...
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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 June 2 2013.docx

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 Daycos assets turnover ratio and its profit margin.
b. Show how the two ratios in Part (a) can be used to determine Daycos 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 Daycos performance
against industry averages.

HOMEWORK WEEK 8

Following are selected financial data in thousands of dollars for the Hunter Corporation.
2012
2011
Current assets
Fixed assets, net
Total asset
Current liabilities
Long-term debt
Common equity
Total liabilities and equity
Net sales
Total expenses
Net income

$500
700
1,200
300
200
700
1,200
1,500
-1,390
110

$ 400
600
1,000
200
200
600
1,000
1,200
-1,100
100

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Dear student, Solutions attached and all work shown. Let me know if you have difficulty in understanding any part. Thanks, Rluxm... View the full answer

8460004.docx

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...

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