The vertical analysis statement of Nobell Inc. is as shown below: (In millions)
ID: 2599187 • Letter: T
Question
The vertical analysis statement of Nobell Inc. is as shown below:
(In millions)
2016
Percent of Total
2015
Percent of Total
Net Sales
$6,355
100.0%
$4,920
100.0%
Cost of Goods Sold
3,370
53.0
2,200
44.7
Gross Profit
$2,985
47.0
$2,720
55.3
Operating Expenses:
Selling Expenses
$675
10.6
$580
11.8
Administrative expenses
$410
6.5
425
8.6
Total Expenses
$1,085
17.1
$1,005
20.4
Operating Income
$1,900
29.9
$1,715
34.9
Other Revenues and (Expenses):
Interest Revenue
0
0
0
0.0
Interest Expense
(400)
(6.3)
(695)
(14.1)
Total Revenues and (Expenses)
(400)
(6.3)
(695)
(14.1)
Income Before Taxes
$1,500
23.6
$1,020
20.7
Income Tax Expense
230
3.6
210
4.3
Net Income
$1,270
20.0
$810
16.5
The figure 47.0% shown for gross profit in 2016 signifies that the ________.
The balance sheet of Atlantis Inc. is below:
Atlantis Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
2016 2015
Assets
Total Current Assets $200,000 $100,000
Property, Plant, and Equipment, Net 550,000 500,000
Other Assets 50,000 50,000
Total Assets $800,000 $650,000
Liabilities
Total Current Liabilities 150,000 100,000
Long-term Debt 350,000 250,000
Total Liabilities 500,000 350,000
Stockholders' Equity
Total Stockholders' Equity 300,000 300,000
Total Liabilities and Stockholders' Equity $800,000 $650,000
Calculate the Current Ratio for both years
Which of the following answers is correct for one of the years for the current ratio?
e-Shop Inc. has net sales on account of $1,200,000. The average net accounts receivable are $600,000. Calculate the days' sales in receivables.
Atlantis Inc. provides the following data:
Atlantis Inc.
Balance Sheet
Year Ended Dec 31, 2015
2015
Assets
Current Assets:
Cash and Cash Equivalents
$29,000
Accounts Receivable, Net
31,000
Merchandise Inventory
53,000
Total Current Assets
$113,000
Property, Plant, and Equipment, Net
120,000
Total Assets
$233,000
Liabilities
Current Liabilities:
Accounts Payable
$4,000
Notes Payable
2,000
Total Current Liabilities
$6,000
Long-term Liabilities
84,000
Total Liabilities
$90,000
Stockholders' Equity
Common Stock
$30,000
Retained Earnings
113,000
Total Stockholders' Equity
$143,000
Total Liabilities and Stockholders' Equity
$233,000
Calculate the debt to equity ratio.
(In millions)
2016
Percent of Total
2015
Percent of Total
Net Sales
$6,355
100.0%
$4,920
100.0%
Cost of Goods Sold
3,370
53.0
2,200
44.7
Gross Profit
$2,985
47.0
$2,720
55.3
Operating Expenses:
Selling Expenses
$675
10.6
$580
11.8
Administrative expenses
$410
6.5
425
8.6
Total Expenses
$1,085
17.1
$1,005
20.4
Operating Income
$1,900
29.9
$1,715
34.9
Other Revenues and (Expenses):
Interest Revenue
0
0
0
0.0
Interest Expense
(400)
(6.3)
(695)
(14.1)
Total Revenues and (Expenses)
(400)
(6.3)
(695)
(14.1)
Income Before Taxes
$1,500
23.6
$1,020
20.7
Income Tax Expense
230
3.6
210
4.3
Net Income
$1,270
20.0
$810
16.5
Explanation / Answer
gross profit is 47.0% of net sales revenue {($2985/$6355)*100}
(Current Assets/Current Liabilities)
($200000/$150000)
Year 2016 1.33
(Accounts Receivable/Net Sales on account)*365
($600,000/$1200,000)*365
182.5 days
Total Liabilities/Stockholders Equity
$90000/$143000
0.63
gross profit is 47.0% of net sales revenue {($2985/$6355)*100}
- The correct answer is
(Current Assets/Current Liabilities)
($200000/$150000)
Year 2016 1.33
- The correct answer is Days Sales in Receivables
(Accounts Receivable/Net Sales on account)*365
($600,000/$1200,000)*365
182.5 days
- The correct Answer is Debt to Equity Ratio
Total Liabilities/Stockholders Equity
$90000/$143000
0.63
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