The comparative financial statements prepared at December 31 for Golden Corporat
ID: 2528353 • Letter: T
Question
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data:
Compute the gross profit percentage for the current and previous years. (Round your answers to 1 decimal place.)
Compute the net profit margin for the current and previous years. (Round your answers to 1 decimal place.)
Compute the earnings per share for the current and previous years.
TIP: To calculate EPS, use the balance in Common Stock to determine the number of shares outstanding. Common Stock equals the par value per share times the number of shares. (Round your answers to 2 decimal places.)
Stockholders’ equity totaled $32,400 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. (Round your answers to 1 decimal place.)
Net property and equipment totaled $37,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. (Round your answers to 2 decimal places.)
Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.)
Compute the times interest earned ratios for the current and previous years. (Round your answers to 1 decimal place.)
After Golden released its current year’s financial statements, the company’s stock was trading at $34. After the release of its previous year’s financial statements, the company’s stock price was $25 per share. Compute the P/E ratios for both years. (Round your intermediate calculations and final answers to 2 decimal places.)
The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data:
Explanation / Answer
Answer to Qs 1(a)
Answer to Qs.1(b)
The current year gross profit margin is better than the previous year
Answer to Qs 2(a)
Net profit margin (b/a*100) 7.6% 7.2%
Answer to Qs 2(b)
The Net profit margin ration is better for current year than previous year
Answer to Qs.3(a)
Answer to Qs 3(b)
The EPS is better than the previous year
Particulars Current Year($) Previous year($) Sales (a) 200000 181000 Cost of goods sold (b) 118000 108000 Gross profit (a-b=c) 82000 73000 Gross profit margin (c/a*100) 41% 40.3%Related Questions
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