USE THE DATA IN THE TABLE BELOW TO ANSWER QUESTIONS 19- 24 (Assume all account f
ID: 2809887 • Letter: U
Question
USE THE DATA IN THE TABLE BELOW TO ANSWER QUESTIONS 19- 24 (Assume all account figures are in dollars) 2016 700 1,930 80 0 1,270 980 7,260 1,600 250 4,860 6,210 8,530 12,750 820 Operating expenses (excluding depreciation)2,130 8,210 350 2017 640 2,260 140 Accounts payable Accounts receivable, net Accruals Cash Capital surplus Common stock Cost of goods sold Depreciation expense Interest expense Inventory (end of year) Long-term debt Net fixed assets Net sales Notes payable 1,390 1,200 7,630 1,730 180 5,240 6,390 9,210 13,950 760 2,530 8,430 410 Retained earnings Taxes 19. This company's operating profit margin (as a percent rounded to 1 decimal place) in 2016 was 20. The total asset tumover ratio for this company in 2017 21. ROE for 2017 is 22. Cash flow from operating activities in 2017 is $ 23. Cash flow from investing activities in 2017 is S 24. Cash flow from financing activities in 2017 is $Explanation / Answer
2017
2016
net sales
13950
12750
less cost of goods sold
7630
7260
gross profit
6320
5490
less operating expenses
2530
2130
less depreciation
1730
1600
operating profit
2060
1760
less interest
180
250
EBT
1880
1510
less taxes
410
350
net income
1470
1160
operating profit margin = operating profit/sales
2060/13950
14.8%
13.80%
total asset turn over ratio = sales/total average assets
12750/16015
0.796129
sales
12750
average assets = (opening +closing )/2
(15320+16710)/2
16015
total assets -2017
(1930+4860+8530)
15320
total assets-2016
(2260+5240+9210)
16710
ROE = net income/total average equity
1470/10740
13.69%
net income = operating profit-interest-tax
1470
average total equity
(11020+10460)/2
10740
total equity 2017
(1390+1200+8430)
11020
total equity 2016
(1270+980+8210)
10460
cash flow from operating activities
net income
1470
add depreciation
1730
changes in working capital
decrease in accounts payable
-60
increase in accounts receivables
-330
increase in accruals
60
increase in inventory
-380
decrease in notes payable
-60
cash flow from operating activities
2430
cash flow investing activities
purchase of fixed assets
(9210+1730)-8530
-2410
cash flow investing activities
-2410
cash flow from financing activities
proceeds from issue of common stock
220
proceeds from long term debt
180
proceeds from capital surplus
120
cash flow from financing activities
520
2017
2016
net sales
13950
12750
less cost of goods sold
7630
7260
gross profit
6320
5490
less operating expenses
2530
2130
less depreciation
1730
1600
operating profit
2060
1760
less interest
180
250
EBT
1880
1510
less taxes
410
350
net income
1470
1160
operating profit margin = operating profit/sales
2060/13950
14.8%
13.80%
total asset turn over ratio = sales/total average assets
12750/16015
0.796129
sales
12750
average assets = (opening +closing )/2
(15320+16710)/2
16015
total assets -2017
(1930+4860+8530)
15320
total assets-2016
(2260+5240+9210)
16710
ROE = net income/total average equity
1470/10740
13.69%
net income = operating profit-interest-tax
1470
average total equity
(11020+10460)/2
10740
total equity 2017
(1390+1200+8430)
11020
total equity 2016
(1270+980+8210)
10460
cash flow from operating activities
net income
1470
add depreciation
1730
changes in working capital
decrease in accounts payable
-60
increase in accounts receivables
-330
increase in accruals
60
increase in inventory
-380
decrease in notes payable
-60
cash flow from operating activities
2430
cash flow investing activities
purchase of fixed assets
(9210+1730)-8530
-2410
cash flow investing activities
-2410
cash flow from financing activities
proceeds from issue of common stock
220
proceeds from long term debt
180
proceeds from capital surplus
120
cash flow from financing activities
520
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