tequired: n the table below, calculate Net Profit Margin, Asset Turnover, Financial Leverage, and Return quity (ROE) ratios for the two businesses. Peanut Queen Lord of Ice Net Profit Margin Asset Turnover Financial Leverage ROE
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- Here are comparative financial statement data for Bramble Company and Debra Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Bramble Company Debra Company 2022 2021 2022 2021 Net sales $1,896,000 $561,000 Cost of goods sold 1,020,048 297,330 Operating expenses 257,856 79,662 Interest expense 7,584 3,927 Income tax expense 54,984 6,171 Current assets 322,500 $310,000 83,500 $78,000 Plant assets (net) 520,800 500,300 139,800 123,000 Current liabilities 64,200 75,600 34,400 29,600 Long-term liabilities 108,400 90,400 28,400 26,000 Common stock, $10 par 498,000 498,000 122,500 122,500 Retained earnings 172,700 146,300 38,000 22,900 Compute the 2022 return on assets and the return on common stockholders’ equity ratios for both companies. (Round answers to 1 decimal…Peanut Queen and Lord of Ice are two competitors selling ice-cream. Below is the information pertaining to the two businesses for the financial year ended June 30, 2021. Peanut Queen Lord of Ice Net Profit ($) 105,000 280,000 Cost of Goods Sold ($) 100,000 1,000,000 Total Assets ($) 500,000 800,000 Total Liabilities 250,000 300,000 Gross Profit ($) 110,000 600,000 Lisa has capital to invest in one of the businesses. She likes peanut butter ice-cream but needs to consider the financial performance of the two businesses to make an informed investment decision. Required: In the table below, calculate Net Profit Margin, Asset Turnover, Financial Leverage, and Return on Equity (ROE) ratios for the two businesses. Peanut Queen Lord of Ice Net Profit Margin Asset Turnover Financial Leverage ROE Based on the financial performance alone, which one of the two businesses…Here are comparative financial statement data for Bramble Company and Maria Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Bramble Company Maria Company 2022 2021 2022 2021 Net sales $1,824,000 $559,000 Cost of goods sold 1,050,624 296,829 Operating expenses 269,952 79,937 Interest expense 7,296 4,472 Income tax expense 54,720 6,708 Current assets 329,000 $312,100 82,300 $78,900 Plant assets (net) 520,800 499,700 140,700 125,100 Current liabilities 65,000 74,200 34,400 29,000 Long-term liabilities 108,400 92,000 30,800 25,200 Common stock, $10 par 495,500 495,500 122,500 122,500 Retained earnings 180,900 150,100 35,300 27,300
- Here are comparative financial statement data for Bonita Company and Linda Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Bonita Company Linda Company 2022 2021 2022 2021 Net sales $1,836,000 $561,000 Cost of goods sold 1,029,996 297,330 Operating expenses 269,892 79,662 Interest expense 9,180 4,488 Income tax expense 53,244 6,171 Current assets 326,500 $310,300 83,200 $78,000 Plant assets (net) 519,000 499,100 139,200 125,700 Current liabilities 65,000 75,600 36,200 29,600 Long-term liabilities 107,600 89,800 28,800 24,400 Common stock, $10 par 505,000 505,000 116,000 116,000 Retained earnings 167,900 139,000 41,400 33,700 Compute the 2022 return on assets and the return on common stockholders’ equity ratios for both companies. (Round…Here are comparative financial statement data for Sandhill Company and Wildhorse Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Sandhill Company Wildhorse Company 2022 2021 2022 2021 Net sales $1,872,000 $559,000 Cost of goods sold 1,100,736 297,388 Operating expenses 263,952 79,378 Interest expense 9,360 4,472 Income tax expense 54,288 6,149 Current assets 326,000 $314,500 83,500 $78,600 Plant assets (net) 519,600 497,900 141,000 125,100 Current liabilities 66,000 75,800 36,600 29,800 Long-term liabilities 107,800 91,600 30,400 25,600 Common stock, $10 par 498,000 498,000 122,500 122,500 Retained earnings 173,800 147,000 35,000 25,800 (a) Prepare a vertical analysis of the 2022 income statement data for Sandhill Company and Wildhorse Company. (Round percentages…Here are comparative financial statement data for Oriole Company and Ivanhoe Company, two competitors. All data are as of December 31, 2027, and December 31, 2026. Oriole Company Ivanhoe Company 2027 2026 2027 2026 Net sales $1,774,000 $531,000 Cost of goods sold 961,508 298,953 Operating expenses 237,716 79,119 Interest expense 7,096 Income tax expense 62,090 3,717 29,736 Current assets 324,900 $314,400 82,400 $79,100 Plant assets (net) 523,200 510,000 139,000 127,800 Current liabilities 65.000 75,200 36,000 30,100 Long-term liabilities 116,200 89,000 29,300 25,500 Common stock, $10 par 491,000 491,000 121,000 121,000 Retained earnings 175,900 169.200 35,100 30,300 (a) Prepare 2027 income statements for both companies, then prepare a vertical analysis for each. (Round percentages to 1 decimal place, e.g. 2.5%.) (b1) Condensed Income Statement For the Year Ended December 31, 2027 Oriole Company Dollars $1,774,000 961,508 Ivanhoe Company Dollars Percent Percent % $531,000 % 298,953…
- Two companies Binky and Smokey trade in the same market. Their financial statements for the year ended 31 October 20Xx6 are summarised below: STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20X6 Binky Smokey S000 $000 $00 $000 Sales revenue 284 305 Cost of sales (155) (151) 154 Gross profit Expenses Administrative Selling and distribution Depreciation Loan note interest 129 24 37 35 53 12 (68) (107) Net profit 61 47 STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 20X6 Binky $000 Smokey Assets S000 $000 $000 Non-current assets At cost 320 515 Accumulated depreciation (75) (96) 245 419 Current assets Inventory Receivables 91 293 46 75 Bank 64 15 201 383 446 802 Equity and liabilities Share capital and reserves Share capital Retained carnings 150 250 108 177 10% Loan note Current liabilities Total equity and liabilities 50 188 446 802 Task 1 Complete the following table to show the main ratios for Binky and Smokey Ratio Gross profit % Binky Formula Smokcy Net profit % Asset…The following income statement appears in the financial report of MERCADO Company for the year ending December 31, 2020: MERCADO Company Income Statement For the year ending December 31. 2020 Sales 72,485,000.00 Cost of goods sold Gross profit 39.866,750.00 32.618.250.00 Less: Operating expenses: Variable selling expenses: Salesmen's commissions 3,624,250.00 Communication expenses 1,812.125.00 Advertising and promotion 635.350.00 Representation expenses 215.385.00 Gas and oil - salesmen 1,285.000.00 Repairs and maintenance 1,150.000.00 3.722.110.00 Fixed selling expenses Salaries and wages 4,225,000.00 Franchises and royalties 524,150.00 Office supplies and materials 555.000.00 Depreciation 963 300.00 6.267,450.00 14.989,560.00 Fixed administrative expenses Salaries and wages 6.324,650.00 Employee benefits 316,490.00 Communications expenses 335,125.00 Office supplies and materials 275,150.00 Depreciation 325,500.00 104 250.00 7.681,165.00 9.947.525.00 Miscellaneous expenses Operating…The table below contains selected financial information from recent financial statements of KBI Toys and Little Tikes Adventure Toys, Inc., two toy manufacturing companies ($ in thousands): KBI Toys Little Tikes 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Net sales $ 80,622 $ 72,120 $ 63,480 $ 68,900 Cost of goods sold 58,900 53,800 40,786 46,325 Year-end inventory 7,400 6,900 5,800 6,300 Required:Calculate the 2021 gross profit ratio, inventory turnover ratio, and the average days in inventory for the two companies. (Round "Inventory turnover" answer to two decimal places.) KBI TOYS Little Tikes Gross Profit Ratio % % Inventory Turnover Average Days in Inventory. days days
- Juma and Jenala each carry on business as wholesalers of the same product. Their respective accounts for the year ended 31 December 2020 are as follows: Juma Jenala K K K K Sales 144,000 140,000 Cost of sales Opening inventory 28,000 3,200 Purchases 124,000 121,600 152,000 124,800…The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000salamagundi, inc. has the following income statement: For the year ended December 31, 2021 net sales: $160 Cost of goods sold: $100 gross profit: $60 Operating expenses: $40 Net income: $20 Using vertical analysis, what percentage is assigned to operating expenses? a. 25% b. 40% c. 66.7% d. 200%