3 questions on accounting!
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Jabi
The comparative statements of Villa Tool Company are presented below. VILLA TOOL COMPANY Income Statement For the Year Ended December 31 2011 2010 Net sales $1,818,500 $1,750,500 Cost of goods sold 1,011,500 996,000 Gross profit 807,000 754,500 Selling and administrative expenses 516,000 479,000 Income from operations 291,000 275,500 Other expenses and losses Interest expense 18,000 14,000 Income before income taxes 273,000 261,500 Income tax expens 81,000 77,000 Net income $ 192,000 $ 184,500 VILLA TOOL COMPANY Balance Sheets December 31 Assets 2011 2010 Current assets Cash $ 60,100 $ 64,200 Short-term investments 69,000 50,000 Accounts receivable (net) 117,800 102,800 Inventory 123,000 115,500 Total current assets 369,900 332,500 Plant assets (net 600,300 520,300 Total assets $970,200 $852,800 Liabilities and Stockholders' Equity Current liabilities Accounts payable $160,000 $145,400 Income taxes payable 43,500 42,000 Total current liabilities 203,500 187,400 Bonds payable 200,000 200,000 Total liabilities 403,500 387,400 Stockholders' equity Common stock ($5 par) 280,000 300,000 Retained earnings 286,700 165,400 Total stockholders' equity 566,700 465,400 Total liabilities and stockholders' equity $970,200 $852,800All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2011, and $3,000 on December 31, 2010. InstructionsCompute the following ratios for 2011. (Weighted average common shares in 2011 were 57,000.) (a) Earnings per share. (b) Return on common stockholders' equity. (c) Return on assets. (d) Current. (e) Acid-test. (f) Receivables turnover. (g) Inventory turnover. (h) Times interest earned. (i) Asset turnover. (j) Debt to total assets. (Round earnings per share, current ratio and acid-test ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.)(a) Earnings per share $(b) Return on common stockholders; equity %(c) Return on assets %(d) Current :1 (e) Acid-test :1(f) Receivables turnover times(g) Inventory turnover times(h) Times interest earned times(i) Asset turnover times(j) Debt to total assets %2)Selected financial data of Target and Wal-Mart for a recent year are presented here (in millions). Target Wal-Mart Corporation Stores, Inc. Income Statement Data for Year Net sales $61,471 $374,526 Cost of goods sold 41,895 286,515 Selling and administrative expenses 16,200 70,847 Interest expense 647 1,798 Other income (expense) 1,896 4,273 Income tax expense 1,776 6,908 Net income $ 2,849 $ 12,731 Balance Sheet Data (End of Year) Current assets $18,906 $ 47,585 Noncurrent ass 25,654 115,929 Total assets $44,560 $163,514 Current liabilities $ 11,782 $ 58,454 Long-term debt 17,471 40,452 Total stockholders' equity 15,307 64,608 Total liabilities and stockholders' equity $44,560 $163,514 Beginning-of-Year Balances Total assets $37,349 $151,587 Total stockholders' equity 15,633 61,573 Current liabilities 11,117 52,148 Total liabilities 21,716 90,014 Other Data Average net receivables $7,124 $ 3,247 Average inventory 6,517 34,433 Net cash provided by operating activities 4,125 20,354InstructionsFor each company, compute the following ratios. (Round answers to 1 decimal place, e.g. 10.5.) Target Walmart(1) Current :1 :1(2) Receivables turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin % %(7) Asset turnover (8) Return on assets % %(9) Return on common stockholders' equity % %(10) Debt to total assets % % (11) Times interest earned 3) Presented below is an incomplete income statement and an incomplete comparative balance sheet of Cotte Corporation. Additional information: 1. The receivables turnover for 2011 is 10 times. 2. All sales are on account. 3. The profit margin for 2011 is 14.5%. 4. Return on assets is 22% for 2011. 5. The current ratio on December 31, 2011, is 3.0. 6. The inventory turnover for 2011 is 4.8 times. InstructionsCompute the missing information given the ratios above. (Note: Start with one ratio and derive as much information as possible from it before trying another ratio. List all missing amounts under the ratio used to find the information.) COTTE CORPORATION Income Statement For the Year Ended December 31, 2011 Sales $11,000,000 Cost of goods sold ????? Gross profit ? ???? Operating expenses 1,665,000 Income from operations ???????? Other expenses and losses ?????????? Interest expense Income before income taxes ????????Income tax expense 560,000Net income $ ??????? COTTE CORPORATION Balance Sheets December 31Assets 2011 2010 Current assets Cash $ 450,000 $ 375,000 Accounts receivable(net) ??? 950,000 Inventory ??? 1,720,000Total current assets ??? 3,045,000 Plant assets (net) 4,620,000 3,955,000Total assets $ ??? $7,000,000 Liabilities and Stockholders' Equity Current liabilities $ ??? $825,000 Long-term notes payable ??? 2,800,000 Total liabilities ??? 3,625,000 Common stock $1 par) 3,000,000 3,000,000 Retained earning 400,000 375,000Total stockholders' equity 3,400,000 3,375,000 Total liabilities and stockholders' equity $ ??? $7,000,000
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I don't think i can answer these questions, i am going to leave your questions open to other experts.
I hope you will get answers soon.
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